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Product Scams: False Advertising, Misrepresentation,
Exaggerated Claims and Products that are not "fit for purpose"
Great Atlantic Warranty of Florida
You may have received a phone call from "Great Atlantic
Warranty" about renewing or extending a warranty for you car You may have thought that the advertising claims seemed
patently false and exaggerated and wondered why the government was allowing them
to get away with it.
You may have Googled their name and seen the many, many
complaints about them.
In this case, Great Atlantic Warranty is being held to task by
the Connecticut Attorney General's Office. Below is a consumer complaint and the text
of a warning about Great Atlantic Warranty and others (National Auto Warranty
Services of Missouri, Consumer Protection Services of Missouri, Auto One
Warranty of California, Warranty Activation Headquarters of Missouri and
Automotive Warranty Advisors of Florida) from the AG of Connecticut.
Report from a Consumer, April 15, 2008:
Great Atlantic Warranty
----------------------------
They called me numerous times saying "This is your
second courtesy notice for your expiring automotive warranty. When I
answered, they told me that they wanted to extend my vehicle warranty, but
didn't have any of my information including my VIN. They said that they
sent me a post card which I didn't get. They wanted me to commit to the
$2500 over 7 years with $0 deductible 100% coverage policy over the phone
because "its the last day of the promotional pricing" without showing my any
paper work. They said that all they can give me was an email of the terms.
I told them I wanted to discuss this with my wife, they give me a lecture
implying that I shouldn't let my wife make my decisions. Then I asked for a
call back number, and they were very reluctant, but eventually gave me a
fake number. The web site they pointed me to had a number which is a looped
message that never picks up.
The following is their web site:
http://www.gawarranty.com/contact.htm
State of Connecticut Attorney General's Office Report
See this page for the
entire article in the original source.
Attorney General Richard Blumenthal today warned consumers about a
massive deceptive marketing campaign attempting to sell extended auto
warranties that has targeted countless citizens nationwide on their cellular
phones and landlines, as well as through postcards, letters and emails.
The marketers offer to sell outrageously priced extended warranties, and
often "phish" for personal information about the consumer.
Blumenthal's office has received complaints against numerous companies
involved in the scam, including National Auto Warranty Services of Missouri,
Consumer Protection Services of Missouri, Auto One Warranty of California,
Great Atlantic Warranty of Florida, Warranty Activation Headquarters of
Missouri and Automotive Warranty Advisors of Florida.
...
Great Atlantic Warranty, FL website:

Automobile Extended Warranty Scam Tips and Warning Signs:
- Beware of any mailings that appear to come from your automobile
manufacturer offering extended warranty coverage.
- Never give out personal financial information such as bank account
numbers or Social Security Numbers over the phone.
- When considering an extended warranty, or any other telephone or mail
solicitation, always insist on getting the complete terms and conditions of
your agreement in the form of a written contract before you agree to sign
up, pay any money or provide your credit card information.
- Never give out personal financial information such as bank account
numbers, credit card numbers of Social Security Numbers over the phone,
unless you are absolutely positive that you know the party with whom you are
dealing.
- The Federal Trade
Commission says consumers, before signing any extended coverage
contract, should fully understand its terms and coverage. The agency also
stresses that what consumers are actually buying is not an extended warranty
but a "service contract." "A service contract is a promise to perform, or
pay for, certain repairs or services. Although a service contract is
sometimes called an extended warranty,' under federal law, it is not a
warranty," the FTC said. "A warranty comes with the original price of the
car, whereas a service contract costs extra. It is mainly this separate and
additional cost that distinguishes a service contract from a warranty."
- There are many things to consider when you're offered an "extended
warranty" or service contract." Consumers should beware that certain
"extended warranties" do not always provide the peace of mind and financial
protection that consumers expected. Many of these contracts, when closely
scrutinized, exclude so many items that they really provide very little
coverage for outrageous prices.
- Check out a business with your state Attorney General's Office and your
local Better Business Bureau before you agree to do business with them.
Further Information
See this page for
contact information for your state attorney general's office.
The FTC works for the consumer to
prevent fraudulent, deceptive, and unfair business practices and to provide
information to help spot, stop, and avoid them. To file a complaint in
English or Spanish, click
here or call 1-877-382-4357. The FTC enters Internet, telemarketing,
identity theft, and other fraud-related complaints into Consumer Sentinel, a
secure, online database available to more than 1,600 civil and criminal law
enforcement agencies in the U.S. and abroad.
- MEDIA CONTACT:
- Frank Dorman,
Office of Public Affairs
202-326-2674
- STAFF CONTACT:
- Karen Jagielski,
Bureau of Consumer Protection
202-326-2509
To see a list of other product
cases click here.
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