We have been contacted by many dealers in recent months concerning very aggressive solicitations their customers have been receiving to purchase extended warranties. The mailed solicitations are misleading customers that their warranties are expiring. Now we are seeing these solicitations take the forms of automated phone calls.
Dealers have a serious problem with solicitations for extended warranties. It is causing problems with customers who get upset because they believe that dealers are selling their information to those who are soliciting them. And where the dealer already sold the customer an extended service contract at the time of sale, dealers receive phone calls from confused, and sometimes irate, customers who read the letter and think they have been mislead about the extended service contract the dealer sold them.
We have investigated the source of these leads. There are several possibilities. However, the number one possibility is that the vendors are somehow getting lists of newly titled vehicles. This list may be developed from many sources like Polk, DMV, insurance companies, etc.
We have been working on several fronts to address this issue:
- We have been in communication with DMV to ensure that information concerning vehicle titling and registration is not used in this manner in violation of Virginia law. Virginia Code §46.2-214 prohibits the use of DMV data for the solicitation of sales.
- We are also working in conjunction with the Office of Consumer Affairs and the Attorney General’s Office to ensure that consumers in Virginia are not subject to solicitation practices that are misleading and that violate state and federal law. They are exploring all possible legal action against those companies that take advantage of Virginia consumers.
- Those consumers who report having paid money for extended warranties as a result of telephone calls or mailings, and who believe they have been victimized or wronged, should be encouraged to call the Consumer Protection Hotline or file a complaint with the Office of Consumer Affairs.
VIRGINIA DEPARTMENT OF AGRICULTURE AND CONSUMER SERVICES
OFFICE OF CONSUMER AFFAIRS
PO Box 1163 • Richmond, VA 23218
Consumer Protection Hotline: (800) 552-9963 or (804) 786-2042
Fax: (804) 225-2666
As always, the VADA is here to help as well. Please send any information you would like to share to
TeamVADA@vada.com.
We have been contacted by many dealers in recent months concerning very aggressive solicitations their customers have been receiving to purchase extended warranties. The mailed solicitations are misleading customers that their warranties are expiring. Now we are seeing these solicitations take the forms of automated phone calls.
Dealers have a serious problem with solicitations for extended warranties. It is causing problems with customers who get upset because they believe that dealers are selling their information to those who are soliciting them. And where the dealer already sold the customer an extended service contract at the time of sale, dealers receive phone calls from confused, and sometimes irate, customers who read the letter and think they have been mislead about the extended service contract the dealer sold them.
We have investigated the source of these leads. There are several possibilities. However, the number one possibility is that the vendors are somehow getting lists of newly titled vehicles. This list may be developed from many sources like Polk, DMV, insurance companies, etc.
We have been working on several fronts to address this issue:
- We have been in communication with DMV to ensure that information concerning vehicle titling and registration is not used in this manner in violation of Virginia law. Virginia Code §46.2-214 prohibits the use of DMV data for the solicitation of sales.
- We are also working in conjunction with the Office of Consumer Affairs and the Attorney General’s Office to ensure that consumers in Virginia are not subject to solicitation practices that are misleading and that violate state and federal law. They are exploring all possible legal action against those companies that take advantage of Virginia consumers.
- Those consumers who report having paid money for extended warranties as a result of telephone calls or mailings, and who believe they have been victimized or wronged, should be encouraged to call the Consumer Protection Hotline or file a complaint with the Office of Consumer Affairs.
VIRGINIA DEPARTMENT OF AGRICULTURE AND CONSUMER SERVICES
OFFICE OF CONSUMER AFFAIRS
PO Box 1163 • Richmond, VA 23218
Consumer Protection Hotline: (800) 552-9963 or (804) 786-2042
Fax: (804) 225-2666
As always, the VADA is here to help as well. Please send any information you would like to share to
TeamVADA@vada.com.