At CARCHEX, scam is a word that is hated by all. When you buy an extended warranty, you should be able to trust the provider. Scams hurt hard working consumers and even legitimate warranty providers. This is why CARCHEX has dedicated themselves to helping consumers recognize the signs of potential scams. One of the easiest ways to avoid a scam is by researching the company first.
Make your first search at the Better Business Bureau. Accredited companies with an A or higher rating are best. However, any company with a C or lower rating should be avoided. Do not just stop at the rating. Read any complaints to see how they were resolved. Companies with a high number of complaints are less than reputable, especially if no clear resolution is present.
CARCHEX SCAM – LEARN THE FACTS
Your next step is to search for the company itself along with the word “scam”. This leads to other reviews on the company. Consumers are usually honest, especially when numerous consumers have the same complaint. Your CARCHEX scam checklist should also include asking the company questions. Ask how long they have been in business. Also, ask questions about the warranty itself, such as details on coverage. Ask to see the complete contract before buying.
If they only provide a partial contract or refuse to provide one at all until you buy the warranty, the company is a scam. They will not provide the coverage promised and the contract will likely be something entirely different from what you agreed.
