Product Scams and False Advertising: Great Atlantic Warranty

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.

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Report from a Consumer, April 15, 2008:

Great Atlantic Warranty

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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

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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.

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Great Atlantic Warranty, FL website:

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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.

 

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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.