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Car extended "warranty" company will change its ways

We've had lots of comments after our post about AG Nixon's lawsuit against those companies that send you urgent notices that your car warranty is about to expire. Our action was called Operation Taken for a Ride. Good news: we have settled one of those lawsuits, and the company has agreed to make a lot of changes to the way it does business. Hopefully this will be the first of many changes in this industry.

In our agreement, National Dealers Warranty Inc. will:

  • Stop implying that their factory warranty has expired unless that's true (often it's not true)
  • Stop implying that they are associated with the car manufacturer
  • Comply with the Missouri No Call list and the federal Do Not Call Registry

We still want consumers getting these mailings or phone calls to file complaints if they think they're misleading.

BTW, the word warranty is in quotes because these should actually be called extended service contracts. This blog post explains the difference.

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Posted by Travis on August 27, 2008 4:32 pm :: Comments (2) :: Permalink

2 Responses to "Car extended "warranty" company will change its ways"

Susan says:

January 28, 2009 12:46 pm

I live in Riverside, CA. I still get mailings and phone calls about my car warranty is about to expire. Was your action nationwide or just for the State of Missouri? If just for your state, would you give me information as to how to go about doing this in CA? My mother-in-law (now 82) ended up with 4 car warranties as a result of this atrocious advertising scheme. Thanks for your help.

Denotes the author of this comment is employed by the Attorney General's Office

Travis says:

February 2, 2009 2:03 pm

To Susan:

If the company is based in Missouri, which many of them are, you can file a complaint with our office - see link above.

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