Extended vehicle warranty scam going on in Manitoba

The Consumer Protection Office, Manitoba Motor Dealers Association and the Manitoba Used Car Dealers Association advise consumers to be cautious of phone calls from companies attempting to sell extended warranties for their vehicles. 

The Consumer Protection Office and the Manitoba Motor Dealers Association have had a number of enquiries from consumers who have been offered an extended warranty over the phone. They urge consumers to check out the business before making any commitment. Consumers should be aware that most companies that engage in direct selling are required to be licensed and bonded by the Consumer Protection Office. 

If you have been contacted by a direct seller, you are advised to first contact the Consumer Protection Office to find out if they are licensed. If they are not licensed, you should not enter into any agreement to buy their product or services.

·         Ask the seller for written information on the terms and conditions of the warranty before you agree to buy it. This includes a complete description of the product, all costs and all conditions. Hang up if the seller refuses to provide this information.

·         Do not give out your credit card number or any personal information unless you have taken all of the above noted steps and are very certain that you understand what you are buying and who you are buying it from.

·         Ask to be put on a do-not-call list if you do not want any future calls from this seller.

·         If you are interested in an extended warranty, check with established dealers or the vehicle’s manufacturer. Get several quotes and compare options before making a decision.    

·         If you have bought a product or a service from an unlicensed vendor, you may have the right to cancel, even up to a year after the purchase.