Car Warranty Scam Calls: How to Spot Them and What to Do

Almost every driver has heard the pitch: a recorded voice says your vehicle’s warranty is about to expire and tells you to press a number. This guide explains how these calls work and what to do. It is education only; Car Bills Explained doesn’t sell warranties or service contracts and will not call you.

How do car warranty scam calls work?

The Federal Communications Commission (FCC) describes the pattern: callers pose as representatives of a car dealer, manufacturer or insurer and say your auto warranty or insurance is about to expire, then pitch a renewal. The call often begins automated or pre-recorded. You may be told to press a number or stay on the line, then asked for personal information that can be used to defraud you.

The Federal Trade Commission (FTC) is blunt about it: “This is an illegal robocall and likely a scam.” The FTC says the companies behind these calls are not with your car dealer or manufacturer, and the “extended warranty” they are selling is actually a service contract that often sells for hundreds or thousands of dollars. It adds that if you buy one, you may find the contract doesn’t cover the problems you have because of restrictions in the fine print. For the difference between a warranty and a service contract, see extended car warranty vs. service contract.

Why do the calls sound convincing?

• They may know about your car. The FCC warns that a scammer may have specific information about your car and warranty and use it to make you think the call is legitimate.
• Caller ID can lie. The FCC explains that criminals may use caller ID spoofing, deliberately falsifying what shows on your caller ID to disguise who they are. A local number or a familiar name doesn’t prove anything.
• They create urgency. Being told your coverage is about to expire is meant to make you act before you check.

What are the warning signs?

• A recorded message about your vehicle’s warranty that you didn’t ask for.
• Instructions to press a number to talk to someone, or another number to be removed from a list.
• Pressure to decide or pay during the call.
• Requests for your Social Security number, driver’s license number, bank account, credit card or VIN.
• Vague answers about who the company is and how it got your number.

What should you do when you get one?

The FTC’s advice for these calls:

1. Hang up. Don’t engage with a company that reaches you with an illegal call. Pressing a number, even to be removed, keeps you talking to the caller.
2. Consider call blocking. Use an app or device to block unwanted calls.
3. Report it at DoNotCall.gov.

The FCC adds: don’t give personal information, such as your Social Security number, credit card information, driver’s license number or bank account information, to any caller unless you can verify you are dealing directly with a legitimate company you already do business with. FTC guidance on auto warranty scams says to include your Vehicle Identification Number (VIN) in that list, unless you know who you’re dealing with.

How do you check your real warranty?

The FTC suggests checking your owner’s manual, calling the dealer who sold you the car or contacting the vehicle manufacturer. Look up the number yourself, from the manual, the manufacturer’s website or your paperwork, not from the call or a text. If you already bought a service contract, the contract names the company that provides it and how to reach it.

If you are interested in a service contract, shop for it on your own terms: get the contract in writing, read what it covers and excludes, and compare it with the warranty you may already have. See how warranties and service contracts differ.

Where can you report these calls?

• The FTC: report unwanted calls at DoNotCall.gov, where you can also register your number on the National Do Not Call Registry, or call 1-888-382-1222. If you lost money, you can also report fraud at ReportFraud.ftc.gov.
• The FCC: file a complaint at consumercomplaints.fcc.gov. The FCC says it doesn’t award individual damages to consumers, but complaints help it identify scammers and take action.

Write down the date, time, number shown on caller ID and what the message said before you report.

What have regulators done?

On July 21, 2022, the FCC announced that it had ordered all U.S. voice service providers to block auto warranty robocall traffic. Scammers change numbers and methods, so if one of these calls still reaches you, the steps above still apply.

How can you help family members?

Older relatives and new drivers are frequent targets because the calls sound official. Share a simple rule: no one gets personal or payment details on a call they didn’t start. Write the dealer’s and manufacturer’s real phone numbers on a card in the glove box, so there is a trusted number to call when a pitch sounds urgent.

What if you already paid or shared information?

• Card or bank payment: contact your card issuer or bank right away and ask about disputing the charge.
• A contract you regret: read its cancellation terms and ask to cancel in writing. Some states set refund rules; Texas: the Texas Department of Licensing and Regulation says a service contract can be canceled for a full refund within 30 days, and after that for a pro-rated refund minus a fee of no more than $50.
• Personal information: watch your accounts, and check your credit reports for accounts you don’t recognize; see free credit reports.
• Report it to the FTC and, for service contract problems, your state attorney general or consumer protection office. See complaints and where to get help.