Auto warranty scammers want your money and their offers may leave consumers high and dry

• Regina Morrison Newman is the Shelby County Trustee. She writes the Wallet Warnings regular feature.

We are always on the lookout for tips about scams impacting Shelby County residents. This month’s scam was shared with us by one of our friends at Live at 9 during my monthly appearance.

While we don’t have any hard dollar loss numbers, our partners at the Better Business Bureau (BBB) regularly receive calls from residents who have received a letter similar to the on in the photo or have received an urgent voicemail that seems questionable.

The phone number that appears on the mailer has been reported to Scamtracker 180 times this year so far nationwide, seven of those reports with that phone number, 888-307-2075, came from Shelby County. There are 15 more reports in Shelby County that are similar and mention the name "vehicle service" or "auto warranty" in the last 6 months.

Motor vehicle service contract scams, also known as extended auto warranty scams, aim to deceive you into purchasing a worthless contract. These contracts often come with terms that make it challenging or impossible to receive coverage for your vehicle. Even worse, the scammer may simply take your money and vanish.

Cars typically include a factory warranty from the manufacturer, covering maintenance and repairs for a specific period at no extra cost to you. There are also legitimate extended warranties that are available from your car dealer especially helpful when purchasing a used car. Scammers will falsely claim that your factory (current) warranty is expiring, regardless of its actual status, to persuade you to sign up and pay for their contract. They reach out via telephone and USPS.

How to stop scammersfrom coming after your verification codes to get into your accounts

These urgent messages often include details like your actual vehicle's year, make, model, and sometimes its VIN (vehicle identification number). It is important to know that this information is publicly available through state motor vehicle records or purchased from data-collection companies, so just because the scammer has it, doesn’t mean they are trustworthy.

If you receive calls, texts, or mail warnings about your car warranty expiration, be cautious.

First, your own car warranty may not even be expiring. The companies behind these messages may imply they're affiliated with your car dealer or manufacturer, but they likely have no connection. Responding may lead to pressure to provide personal and financial information and make a down payment without receiving contract details. Furthermore, if you purchase a service contract from these companies, they may not be in business when you need to use it.

Tips to avoid falling victim to bogus auto warranty offers

• Verify: If you receive a piece of mail or call regarding your auto warranty, verify the legitimacy of the offer. Contact your vehicle manufacturer or dealership directly using a trusted phone number to inquire about your warranty status.
• Be Skeptical: Be cautious of high-pressure tactics and unsolicited offers. Legitimate companies typically don't use such tactics to sell their products or services.
• Protect Personal Information: Never provide personal or financial information over the phone unless you are certain of the caller's identity and legitimacy.
• Report Scams: If you suspect that you've been targeted by a bogus auto warranty offer or any other scam, report it to the BBB’s scamtracker at BBB.org/scamtracker

Remember, it's always better to err on the side of caution and verify the legitimacy of any unsolicited offers before taking any action.

The consumer good news

The Federal Trade Commission announced in March that it is sending more than $4.1 million in refunds to people who lost money to student loan debt relief scammers who lured consumers with fake loan forgiveness claims.

The FTC alleged that, since 2014, the operators of Mission Hills Federal and Federal Direct Group (the scheme used several different names) tricked students into paying hundreds to thousands of dollars in illegal upfront fees and pretended to lower consumers’ monthly student loan payments. The operators also tricked consumers into sending their monthly student loan payments directly to the defendants by falsely claiming to take over the servicing of the consumers’ loans.

Few payments were actually applied to consumers’ student loans, and in many cases, none at all. The FTC is sending checks to close to 30,000 consumers. Anyone with questions about a refund payment should contact the refund administrator, JND Legal

Administration, at 844-566-0108. Because tricksters will use any opportunity to make a dime, the FTC's announcement reminded consumers that they never require anyone to pay money or provide account information to receive a refund.

Our goal with Wallet Warnings remains the same - to help you safeguard your money. If you have any questions or need any additional information about anything discussed here, please call (901) 222-0206. We are happy to help you avoid scams, fraud, and predatory lenders. You work hard for your money, and we want to make sure scammers don’t get it.

Regina Morrison Newman is the Shelby County Trustee. She writes the Wallet Warnings regular feature.