It seems that these days you don’t even have to own a car to be on the receiving end of one of those extended car warranty phone calls. Well, if you live in Oregon, those pesky calls might soon be a thing of the past.
Authorities Cracking Down on Scam Extended Warranty Companies
The DOJ recently announced substantial legal action against one scam company operating in Oregon. The same company which has been the subject of complaints in other jurisdictions is one of many operations that are being shut down by officials. If you live in Oregon and have been the subject of a scam extended warranty service, here’s what you need to know.
DOJ Indicts Extended Warranty Services over Scam Services
Between 2016 and 2019, hundreds of thousands of mailers were sent out to Oregonians by the company Endurance Warranty Services. As a result of their statewide effort, the company was able to secure 1,600 extended warranties from drivers throughout the state.
Officials detail however that these extended warranty purchases were done under false pretenses due to the targeted and intentionally intimidating promotional material sent out by the
Company.
These discriminatory mailers were sent out to residents of all ages including individuals who didn’t even own vehicles. According to officials, the Better Business Bureau offices serving Northern Illinois and Chicago received countless complaints about Endurance Warranty Services. At one point, the BBB requested the company on several occasions to change or discontinue entirely their promotional mailers. The BBB explained that the mailers contained confusing and aggressive language that often intimidated recipients into purchasing the extended warranty coverage.
Oregon DOJ launched an investigation into Endurance Warranty Services after hundreds of complaints about the targeted warranty advertisements continued to trickle in. According to the DOJ, the company would at times target individuals they knew had car warranties that were nearing exploration, often listing their vehicle’s make and model on the mailer.
What Legal Action Means for Endurance Warranty Services
As part of the DOJ’s investigation, strict legal action was taken against Endurance Warranty Services. Included in this legal action was a $550,000 fine to be paid by Endurance. The company will also be banned from operations for the next five years.
After coming down on Endurance warranty services, the DOJ announced that it would be taking similar actions and investigating other companies that advertise and offer misleading extended car warranty services.
The Future of Extended Car Warranty Services
This latest move against extended warranty services is not the first of its kind. In July, the Federal Communications Commission ordered that all phone companies would have the ability to deny service to extended car warranty companies that operated under false pretenses. To highlight this crackdown on scam companies, the Federal Trade Commission recently announced that it charged a similarly operating company in Florida over six million dollars for its fraudulent business practices.
This post may contain affiliate links. Meaning a commission is given should you decide to make a purchase through these links, at no cost to you. All products shown are researched and tested to give an accurate review for you.
