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A Wolf in Sheep's Clothing
updated: Mar 03, 2013, 8:13 AM

By Edhat Subscriber

My car loan is nearing it's pay off. A month ahead of time, I've gotten an official looking notice from "Motor Vehicle Services." It looks like a DMV form, but it seems like a solicitation. It has words like final notice, warranty, expiration, extremely urgent. pending and time-sensitive. The fine print says it is for a loan for an extended warranty. 1) What is this really about? and 2) how do they know my pay-off date? It says Toyota nowhere; that's who my car loan is from.

Comments in order of when they were received | (reverse order)

COMMENT 380866P	2013-03-03 08:18 AM
I got that before and tossed it out. If you want to refinance your car then do it through your bank, or better yet, a credit union! I am sure that the holder of the loan sells your info.
COMMENT 380868	2013-03-03 08:25 AM
Those are all keywords to get you nervous, definitely a scam just to get more money from you
COMMENT 380871	2013-03-03 08:33 AM
They don't know your about to pay it off. It would say the same thing if you still had 3 yrs left. It's not a complete scam, they do have non manufactures warranties out there. Some people say they are ok, I've never dealt with them.
COMMENT 380872	2013-03-03 08:35 AM
It's an offer to buy an extended warrantee. I've always heard they are a waste of money. Check with triple a?
COMMENT 380877	2013-03-03 08:42 AM
1. It's a loan for an extended warranty, as you stated. 2. Your car loan is on your credit report, and unless you have a security freeze on it, it's available for data mining to companies that want to sell you an extended warranty. Welcome to the 21st century!
SBJULES	2013-03-03 09:00 AM
I was told they are a scam.
ECHO	2013-03-03 11:01 AM
OP, I got the same, and Called! I know what you're talking about. I have my loan thru Toyota as well. The first one I got, I disregarded. We had purchased an extended bumper to bumper warranty, added into our loan, when we purchased our vehicle. This was supposed to cover us thru 125,000 miles. A few months after I received the first notice, I received a letter from the Ventura County Department of Motor Vehicle Investigation Department, that stated they were investigated the business practices of the Toyota dealership here. It stated if I was interested in more information to give the agent a call. Gave complete contact info, on DMV letter head. I put it aside and was going to call "later". Then a few days later I received another notice stating that this was the final notice, that my warranty would be canceling, and I only had a few days left to extend it. I looked closer this time. There was no company name, there was no information to tie it to Toyota, or who I had my loan thru. So I called the number. The guy told me about my 100,000 manufacturers warranty expiring on the date listed on my notice, and that I can extend it for additional financing or I can pay in a lump sum. They started to go down a list of what would be included, what my options were for time length, milage, and pricing. I stopped him, asked what company this was. I said you don't have this listed anywhere on my notice, I have no idea who you are, and I already purchased an extension with my vehicle. He said they were the company that held the manufacturer warranty and couldn't tell me anything about the addition I purchased. I called the Investigator from the DMV who asked several questions about my purchasing experience, but didn't seem to be about the warranty issue. I validated that my extended warranty was in place, and didn't contact the first company again.
COMMENT 380942	2013-03-03 12:11 PM
Yikes... good thing you asked. I reckon some people would believe anything a total stranger will tell them over the phone without some form of fact checking or due diligence. Good on you, ECHO, for asking poignant questions and noting how they got deflected as a politician would.
COMMENT 380968P	2013-03-03 02:28 PM
If a company uses deceptive methods like this to solicit new customers, how do you think your business relationship with them will be once they have your money? As consumers we don't have to accept such disrespect. Let your money do the talking and patronize businesses that respect their customers.
COMMENT 380979	2013-03-03 04:02 PM
Scam. Be Careful, a lot of desperate people running scams. Anyone with a scanner and printer can produce " real looking" documents--- the key is the language used-- anything urgent, call now, final request/ offer is a red flag.
COMMENT 381010	2013-03-03 06:22 PM
I have received the same thing in the mail and disreguarded it as a scam. I have taken my vehicle to Toyota of Santa Barbara for services though. After reading ECHO's comment I am wondering if the dealership and the extended warranty/scam solicitors are working together.
COMMENT 381015	2013-03-03 06:31 PM
Any company that resorts to false impressions or impersonations doesn't get any of my business.
COMMENT 381024P	2013-03-03 06:54 PM
We are due for a lot of scams in the future with the economy tanking. We had a health insurance one years ago - a no-questions asked policy by scammers advertising on KNX 1070, representing themselves as an engineer's group. Every time we got close to meeting the deductible, the company changed names and contact info, and did this several times. I reported them to the AG, my ex still thought they were legit. By the time I reported it, the feds had started RICO prosecution and all their money was offshore. We were reimbursed for the cost of the insurance premiums, not bills, so it could have been worse. There are a lot more predators out there now, and a lot fewer $$$.
COMMENT 381101	2013-03-04 06:56 AM
This sounds like actionable fraud and a potential class action. Companies that impersonate the government or other entities, including banks, need to get sued. Simply not falling for it, as some suggest is the only solution, won't protect the elderly, non-english speakers and other vulnerable folks. It will do nothing to discourage other scam artists. Local consumer rights/lemon lawyer Julianna Makler Malis should be consulted.
COMMENT 381127	2013-03-04 08:15 AM
Received the same nonsense in the San Jose area. Bought a Camry Hybrid with 6K miles on it a couple of years ago and the owner had an extended Toyota warranty which was transferred to me. Wonder where they get the info and our addresses and knowledge enough to try to scam us? I've received the notice twice now and it went into the paper shredder right away.
ECHO	2013-03-04 08:59 AM
From what I understand it was supposed to be the company "contracted" to carry the original factory warranty. I would have assumed that the factory would carry that warranty. I also would have thought they would have had their company/brand name on the notices. I don't know that they were working with Toyota as a scam, the questions the Investigator asked had more to do with the process of purchasing the vehicle, and not really anything about the warranty. They did tell me however, if I contacted the company that we had purchased our extended warranty with, and there was no such policy, then to call back. Since I was able to validate, I left it at that.
COMMENT 381170	2013-03-04 09:39 AM
The only one responsible for a manufacturers warranty is the manufacturer. Extended warranty coverage purchased for additional monies may be furnished by other independent insurers. If you are not careful and buying an extenderd warranty, make sure it takes effect after the factory or manufacturers warranty expires. Unless the warranty is offered by a reputable dealer you bought the car from, then it is not recommended you purchase any extended warranty because it may not be honored the dealership service department. There are many ways these "warranties" can be evaded. e.g. failure to meet some of service schedule or maintenance program suggested by the manufacturer. Voidable if transfered by the original purchaser. Diminishing coverage initially for everything as inducement to purchase it (i.e.bumper to bumper coverage for a short period of time) then shrinking to only drive train components after a year. Set schedules what amount the insurer will pay for what repairs, etc.
RHS	2013-03-04 10:05 AM
Hey folks: This is the FREE ENTERPRISE SYSTEM. Caveat Emptor is the motto for our brave new world. No government intervention and no government regulation. Everyone can check with Edhat to get advice and we can all be comfortable in the new Objectivist Economy. Or not?
COMMENT 381274	2013-03-04 01:53 PM
Strange how law enforcement tends to ignore the scamming crime wave? Perhaps the scammer, whoever they are are, well connected enough to evade justice... like their bankster buddies?

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