Diverting Deception from Recycle to Evidence
Deceptive mail advertising quickly lands in my recycle. One warranted attention, and complaints.
EWS -- Vehicle Division mailed me an "IMPORTANT VEHICLE NOTICE" for my 2008 Honda. The front listed a Customer ID No. and Deadline Date: Jan 8, 2010. The back had: "Call Now to Activate your Vehicle Service Contract." Below that in bold, underlined words: "Your Risks: If you choose NOT to take action, you will be FINANCIALLY LIABLE .." Liable for what?
"Any repairs that are necessary after your warranty expiration date." The notice offered help: "ACT NOW" You still have time to ACTIVATE extended out-of-warranty vehicle coverage." I decided to call after that prodigious deception.
Mr. Harris answered and asked for my customer number. I asked, "Am I a customer?"
"No," he said, "they're giving you the last chance to extend the warranty, so, how many miles on your car?"
Based on my stated mileage, he proposed a 5-year, 100,000-mile warranty with a $260.50 down payment (after a $200 first-call discount), and $130.25 for 18 months, a total of $2,605.
He advised me to buy, saying it's, "The smartest thing you can do. I guarantee you, you go into a dealer and they'll run you through a wringer at more than a $130 a month."
I declined and called Sheri Freer in the finance department at my dealer, Apple Valley Honda. Based on the same mileage she quoted a similar payment plan that included Washington sales tax. Her total was $1932.12. Mr. Harris never mentioned taxes, and still quoted almost $700 more.
Freer said they'd never hire a third party to contact customers. "If the warranty is ending, you may get a call from me as a courtesy."
Freer told me, "Companies can get owner and the VIN number from Washington's DOL, but they don't have the mileage or the warranty date."
Using owner and VIN numbers from state information for marketing purposes is illegal, according to Mary Lobdell, in Washington's Attorney General's office. She is overseeing Washington's two-year investigation with 39 other states on deceptive marketing practices for vehicle service contracts. "There are all levels of deception in these cases, " she said.
My notice implied a relationships with a customer, the manufacturer, a final deadline, a final chance, and that it's a warranty. EWS marketed me a service contract from an insurer, not a warranty. The insurer must be registered with Washington's Office of the Insurance Commissioner. EWS, actually Endurance Warranty Services, LLC, is not registered with the OIC, so I called back. A man said EWS is a "warranty broker," and that my quote would be insured by Royal Administrative Services from Massachusetts.
Royal is not registered on the OIC site, so late yesterday I emailed Royal asking if they were authorized to sell in Washington.
Endurance is accredited with the Chicago BBB since March, 2007. The Chicago BBB rating is a C, with details about 55 complaints in the last 36 months, 38 of which have been resolved in the last year. Five were irresolvable.
Lobdell said the investigation is impacting the industry. "The business works, as companies have admitted, when marketing outruns the refunds, which they have to keep low." Some insurers are failing as contract sales generate less cash.
I filed complaints with Washington's Consumer Protection Division and Chicago's BBB, but Lobdell advised me to also file with the Illinois Attorney General.
A commenter on the Town-Hall for the automotive website Edmunds.com admitted giving credit card information to the EWS sales person. After trying to revoke it during the call, the representative said, "that could not be done." The frustrated victim accuses an unknown, unscrupulous dealer employee of providing information, which is unlikely.
Lobdell said the state has tightened regulations around companies authorized to obtain vehicle information for research and statistical analysis, but she believes there is still a leak to the industry, perhaps through another firm.
These incidents make me feel like an elk in a herd crossing Alaskan tundra, trailed by wolves. Aging toward frailty, I increasingly fear these predatory firms tracking me and my information. The good news is our Attorney General's office is investigating, but my complaint to the Consumer Protection Division is the only one against Endurance.
Our initial defense is accurate, registered complaints, more publicly available. In the meantime we can alert people and save the evidence.



Good job, Jim! You used your head and took action to stop that dreadful scam. I forward emailed scams to: spam@uce.gov. After forwarding for three months, I stopped receiving scam emails.
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This post gives the light in which we can observe the reality. this is very nice one and gives in depth information. thanks for this nice article Good post.....Valuable information for all.I will recommend my friends to read this for sure.
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Definitely you have taken some good precautions.
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Yes my friend you have taken some really good precautions.It is necessary.
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You made some good points there. I did a search on the topic and found most people will agree with your blog.
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I am so glad this internet thing works and your article really helped me. Might take you up on that home advice you gave.Perhaps a guest appearance would be good.
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interesting blog...
thanks for sharing with me....
excellent presented information.
thank you..
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Thanks, Jim, for your wisdom and tenacity and the exposure of this scam. We've received similar come-ons and I usually just shake my head and murmur something about the failure to teach marketing ethics that sticks after graduation... There seems to be no limit when making a buck is concerned.
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My notice implied a relationships with a customer, the manufacturer, a final deadline, a final chance, and that it's a warranty. EWS marketed me a service contract from an insurer, not a warranty. The insurer must be registered with Washington's Office of the Insurance Commissioner. EWS, actually Endurance Warranty Services, LLC, is not registered with the OIC, so I called back. A man said EWS is a "warranty broker," and that my quote would be insured by Royal Administrative Services from Massachusetts
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we see is the right thing to do will always have haters. Choosing to "fly above the drama" is what gives us the motivation and the inner strength to chase our dreams. I'm chasing mine. It's time to chase yours!
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I lately had a legal change made to the title of my home and a month later was informed by mail that I could send in $49.50 and get a new, revised/corrected title. The notice looked like it had been sent from the Laramie Country Title Office, so instead of sending in my money, I called them. They informed me that if I did want a new title, I only had to go there and request it at $.10 a page.
For the unaware, and especially the elderly, the pitfalls are many, and I don't recall when we lost the regulations that prevented the scams we are now seeing everywhere. The sale of snake oil is once again a lucrative business, and at best, we can try to spread the word to warn others, as you have done.
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Hello there are taxes, always when you buy a new vehicle.So always remember.
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I appreciate the work that you have put into this page. Genuinely good,and informative. Thank You
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People should be more aware so as to not fall for such deceptive mails.
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Liked the way you have written the above post.
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That is something that should be really be taken seriously.
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Really great article..keep posting more such articles...Thanks
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Diverting deception is a very important issue.
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I hope they would understand about it.
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I confess that content like this one is rare to find online
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The sale of snake oil is once again a lucrative business, and at best, we can try to spread the word to warn others, as you have done.
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It is a major issue which should be appropriately dealt with.
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Nice thought and very good way of presentation i really admire the word describe in the post.
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I had a similar notice in my mailbox a few months ago stating that my Maxima's warranty was expiring and that I needed to call. What was ironic was that I bought my Maxima used, and never even purchased a warranty!
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Thanks for sharing such wonderful article...keep up the good work...
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Deceptive mail advertising is an serious issue and your clear words have enlightened it.
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Liked the way you have written the post.
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Thanks for sharing your words...I really appreciate it dude!
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I have found an invaluable resource in this blog
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I really appreciate your professional approach. These are pieces of very useful information that will be of great use for me in future.
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This might really make people aware.
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Seriouslly it just a mind blowing blog. thanks for posting.
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I wish I could find more blogs like this one but I doubt it
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Lobdell said the state has tightened regulations around companies authorized to obtain vehicle information for research and statistical analysis, but she believes there is still a leak to the industry, perhaps through another firm.
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Hi Jack Russel. You have a lot in your brain man. The way you start and go with your article is awesome. Keep them coming. Thanks
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