Attorney General Mark Barnett Issues Consumer Advisory

(Pierre) – Pierre-Attorney General Mark Barnett is warning of a new scam surfacing in the Midwest.  “Warranty USA” is one of several companies sending out official looking mail solicitations. The solicitations are being mistaken for official notices about the manufacturer’s auto warranty. These solicitations often include the year, make and identification number of the car.

“I have personally received one of these ‘notices.’ It is very difficult to tell that it did not come from the carmaker. The letters are clearly designed to fool people,” commented Barnett.

The postcards ask the consumer to “call at your earliest convenience concerning the vehicle.” Once consumers make the call to Warranty USA, they are subjected to "hard sell" telemarketing tactics urging them to buy the company’s extended warranty auto service contract.

The company is currently under investigation for misrepresenting their service plan and terms for cancellation and refunds. Warranty USA is also under investigation for making unauthorized charges to consumers. Some consumers were signed up for the extended warranty plan even though they declined the offer.

Consumers who did sign up for the plan with Warranty USA have had problems obtaining payment for repairs and have had a difficult time reaching the company.

If you receive a telephone or mail solicitation form Warranty USA, contact the consumer protection division of the Attorney General’s office at 1-800-300-1986 or www.state.sd.us/atg.

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