Is this misleading and predatory solicitation?

[GoldenRivet]

Mrs. Simmons is an elderly woman who has just lost her husband to cancer just a year ago.

Her husbands cadillac, which he purchased 3 years ago was their primary means of transportation.

Today, she received the following notice in the mail:
============================================

TAKE IMMEDIATE ACTION *** TIME SENSATIVE MATERIAL

URGENT

SERVICE CONTRACT EXPIRATION

Expiration Date: June 2011 - Coverage is still available if you act now.

Your Owner ID is:
B1E-1327

Your vehicle Make is:
2009 CADILLAC

THIS LETTER IS MEANT TO INFORM YOU THAT YOUR FACTORY WARRANTY ON YOUR 2009 CADILLAC IS EXPIRED (OR IS ABOUT TO EXPIRE). YOU MAY EXTEND WARRANTY COVERAGE ON YOUR VEHICLE WITH A SERVICE CONTRACT. HOWEVER, THIS COVERAGE OFFER EXPIRES ON 04 JUNE 2011

YOU MUST CALL BEFORE 04 JUNE 2011 IN ORDER TO EXTEND YOUR VEHICLE WARRANTY COVERAGE.
================================

the solicitation includes a phone number and numerous "owner codes" and "vehicle codes" and options for "warranty extensions".

Mrs. Simmons, fearful that her warranty has expired, and not wanting to risk losing the warranty and unable to afford potentially expensive repairs and parts calls the 1-800 number.

the associate on the phone asks her which warranty plan she has.

Mrs. Simmons is unsure

the associate says that she probably has the 3 year 30,000 mile warranty plan that most automobile manufacturers offer, and asks her if the vehicle is older than 3 years.

Mrs. Simmons says that it is older than 3 years

the associate says that she can add 3 more years of warranty coverage for $65 per month.

Mrs. Simmons purchases the coverage - not knowing (or perhaps unsure) that her husband's Cadillac is actually covered for the next 5 years by the manufacturer. She relents, enters into the contract and pays the $65 per month every month for the next 3 years. all the while she was fully covered by the manufacturer.

3 years comes and goes. Mrs. Simmons has now paid over $2,300 toward her "extended warranty plan" which is now reached it's expiration.

her manufacturer warranty was still good for another 2 years.

she literally received NOTHING for her money.






is this a dishonest, manipulative and predatory solicitation?

[AVGWarhawk]

I get these all the time. Her extended warranty has expired and reverted back to the factory warranty. The factory warranty is never as good as the extended in my experience. The extended warranty just about assures the owner 99.9% free repair on ANYTHING. The factory warranty is workmanship and material. Certainly not having leverage like the extended warranty. Let's face it....the extented warranty is a gamble for the auto manufacturer. They bet the $2500.00 for the warranty that your car will be free of defect. Normally it is and normally the manufacturer wins in the bet. However, sometimes the warranty is exercised and if you look at it...you have paid for the repair up front with the original $2500.00 paid at purchase. If your altenator blows it may cost the dealer $300.00 to fix. You get a receipt with 0.00 on it; you feel good. The dealer is still $2200.0 ahead of the game! It is a win for the dealers. It is a win for the third party warranty companies. If it was'nt it would not be offered. Only when something major blows out the tailpipe does the dealer take it in the shorts. Motor goes, tranny grenades, etc.


Anyway, the solicitation is not really deceiving. The woman should make inquiry with her current warranty company. They would probably offer another extention. VW does. :03:

[GoldenRivet]

to be honest, i had to go back and look at my paperwork to see what warranty i had.

My only other option would have been to call the manufacturer.

An elderly woman in a panic - worried about choosing whether to be able to drive or afford her medications might not make the connection - might be likely to call and sign up for extended coverage.

personally, i think it is a little deceptive... and laws should be enacted to force these companies to include a single line of text top dead center of the mailing.... and that text should read.

"THIS OFFER OF WARRANTY SOLICITATION DOES NOT COME FROM CHEVROLET. THIS COMPANY IS NOT A REPRESENTATIVE OF CHEVROLET OR ANY OF IT'S AFFILIATES. THIS IS AN OFFER FOR EXTENDED, THIRD PARTY WARRANTY WHICH SUPPLEMENTS THAT WHICH YOU MAY OR MAY NOT ALREADY HAVE."

[AVGWarhawk]

Most warranty extension are third party. Some prefer them over what the dealer offers. Truth be told GR, my wifes Mercury has so many bells and whistles I purchased the extended warranty. I started getting these solicitations in the mail about a year after purchase. I worried for a brief moment then read my paperwork. The elderly woman is not alone and these solicitations are to make you break out in cold sweat. Just like that stupid program that pops up showing all kinds of viruses and the red bar flys over to the right and the number of infection keeps climbing like mad. The computer user is pressing the X out button like mad! It creates a sense of urgency. People react without thinking about first. Same deal here with this solicitation.

[AVGWarhawk]

BTW....people get taken all the time with things like this. Is it illegal? No. It is underhanded though. :down: People really need to watch and question these day.

[Platapus]

Did the waranty company ever claim that her car was not covered? A person can choose to have multiple warranty on their car at the same time (not a practice they would recommend).

If they did not lie, then what they did was legal. They offered to sell a warranty and she bought it. Based on the information you posted, it does not seem that they are dishonest

As for manipulative? Sure, but that is a part of marketing. The women should have done a little bit of research on her current warranty but she gave in to a high pressure sales pitch. Buyer beware.

Predatory, only if you could demonstrate that the death of her husband somehow triggered this sales pitch. If not, then I would not say they were predatory, just a manipulative hard sell sales office

I was looking for an extended warranty for my new vehicle. I got contacted by this very high pressure company. Boy were they good. I could easily understand some one with less sales resistance than I falling for it.

It sounds like a slimy telemarketing based company that relies on the hard pressure sales and she, unfortunately bought in to it.

Shame on them, but at the same time shame on her.

They were slimy and she was unwise.

[GoldenRivet]

Platapus, here is the long version of my encounter.... they were very careful with their words

I received one of these notices today and called to politely ask if i could be removed from the mailing list.

My first question was "How do you know my name address and vehicle year, make and model?"

he states "our marketing department handles that."

i said "How does your marketing department know my name, address, and vehicle year, make and model?"

he says "My file doesn't show that, they just know."

im thinking "They just know??? they just know." :doh:

i asked to speak with a supervisor and the twerp said "Im perfectly capable of assisting you with any problems."

i reiterated my request to speak with a supervisor

supervisor comes on the line

"yeah?" he said :88)

"Yeah.... its my opinion that these notifications you send in the mail are misleading and i would prefer to be removed from your mailing list."

"ok, sorry you feel that way.... whats your customer ID?"

I give him the ID number off the card

"Ok let me pull it up here.... your name is John? and you have a Nissan?"

"yes"

"ok let me transfer you over and we will see what we can do for you."

hold for a minute and a third guy answers.

"Hi, my name is Tony and i have been given authorization to offer you our platinum protection plan."

"I dont want a protection plan, i had asked to be removed from your mailing list, the last guy was working on that supposedly and all the sudden i have you on the line now."

Did the waranty company ever claim that her car was not covered? A person can choose to have multiple warranty on their car at the same time (not a practice they would recommend).

he then asked: "Well i will see what i can do to take care of that request, in the mean time how is your nissan running? everything working ok?"

I said "Everything is working fine, thank you for asking."

He says: "Do you have the typical 3 year 36,000 mile warranty that they provide there from the dealer?"

Me: "I think thats the one i have."

Him: "Do you have over 36,000 miles?"

Me: "About 38,000 now. but im not interested in any service plan. i just want to be removed from the mailing list."

Him: "Well sir, it sounds to me like your warranty is actually expired and we can certainly help you with that today."

Me: "No thanks, i have talked to 3 people now, and nobody has been able to help me with this issue, just remove me from the mailing list."

he put me on hold for several minutes and assured me i had been removed.

i asked for a confirmation number and his name and he told me "oh we dont do anything like that for mailing list removals, is there anything else i can do for you."

Me: "no thanks. have a nice day."

end.




If they did not lie, then what they did was legal.

yes... legality and morality - gray area again. I'm perfectly in agreement that the scenario was legal - my interaction with this company today broke no laws on either end that i am aware of.

however, i do think that it is a very manipulative practice, and that consumers should be protected from such things.

i fully think that companies should be required by law to:

1. Remove you from any and all mailing lists

2. disclose the entity they acquired your contact information from.

3. Openly disclose that they do not know the status of your vehicle's warranty, only that they can offer services that are supplemental to that which you may or may not already have.

[Ducimus]

the associate says that she can add 3 more years of warranty coverage for $65 per month.

I stopped reading there. There is where i start waving the BS flag, and say, yup, predatory. That's a scam and a half.

[UnderseaLcpl]

I voted that this is a legitimate business. I only say so because it exists. Were it even possible to outlaw scams like this, I'd vote otherwise, but it is not.

My actual vote is for "caveat emptor". There is no reason why an elderly person should be so uninformed about their own vehicle, regardless of circumstances. I have no sympathy for her or the decision she made, and doing so simply lends credence to the same kind of legal process that makes such things possible in the first place. Well, I do feel a little sympathy, but not much!

Thinking that something could or must be done about this only worsens the problem. Complacency bred by faith in the law helps nothing.

[GoldenRivet]

I dot know that it should be outlawed, but I think laws should be put into place so as to prevent literature from appearing as if it were sent be the manufacturer.

[Platapus]

Just like those sales sheets that look like they came from the IRS too.

Pretty slimy. But people need to be responsible for themselves too.

In this age of the Internets Tubes, there really is no excuse for not being able to check up on stuff.

Still sucks when companies use those techniques.