MILWAUKEE — Those who own a car know choosing a warranty can be a tricky thing. One company is accused of tricking people into paying for extra coverage that isn’t quite complete.
A company called “CarSafe” is sending mailings to car owners labeled “urgent” and “time sensitive” — offering to extend vehicle warranty coverage. The mailing looks officials, says “this is the second attempt at making contact,” and “it’s important.”
The mailing shows available extended warranty options and even has the right year and vehicle make on the top.
According to the Better Business Bureau, CarSafe is an “auto service contract company” that has an F-rating and a government action against it by the Missouri Attorney General’s Office for using “misleading marketing tactics.”
Complaints about CarSafe include poor customer service, a failure to actually cover needed repairs, and harassing phone calls and mail solicitations even after consumers asked the company to stop.
CarSafe General Manager Nils Flodberg told FOX6′s Contact 6 he cannot talk about the ongoing lawsuit against his company, but said much of what may appear as bad business practices are actually mostly complaints against other similar companies that get lumped together because the mailings look similar.
When asked why his company doesn’t change its mailer to stand out from other companies, Flodberg said that is in the works.
For those looking for a warranty extension, AAA says take your time researching warranty companies. No reputable company would require a snap judgement.
Contact 6 suggests considering how long the car will be driven for and how much, then choosing the best warranty based on driving habits.
Also, car owners should be sure they know where the warranty is from (i.e. a dealer or a third party). The warranty company should not hesitate to explain, and should be willing to offer background information on itself.
CLICK HERE to file a complaint with FOX6′s Contact 6.