Consequences of Consumer Activism
In early January my Clear Skies column reported on deceptive practices I uncovered after telephone conversations solicited by a direct mail postcard from EWS – Vehicle Services, www.extendedwarrantyservices.com. An agent offered to sell me a services contract for my Honda Civic.
After investigating I filed complaints with the BBB in Chicago and the office of Washington’s Attorney General. My complaints demanded EWS cease deceptive mailings and telephone sales practices. What has happened since is the good and bad news about the power of consumer action.
EWS responded to my complaint. It terminated the agent because “the practice of telling [complainant] that it is his last chance of obtaining a warranty is unacceptable.” But its response raised questions and since the BBB assumes complaints are resolved without a second response from the complainant, I insisted my complaint wasn’t resolved. For example, EWS stated: “The mailing sent followed all VPA guidelines for a compliant postcard.”
VPA is the Vehicle Protection Association, an industry membership organization with guidelines of professional conduct. My response asked, “Where would I find the VPA guidelines for compliant postcards? My search on the VPA website Standards of Conduct did not identify guidelines for postcards. I used the VPA consumer feedback form to request postcard guidelines but have not received a reply.”
A few days later EWS sent me another postcard. That postcard has a different customer number, targeted my Honda Pilot and posted a deadline date of January 26. The deceptive wording was identical. I planned to call.
Before I called EWS, EWS called me. Paul Chernawsky identified himself as EWS internal legal counsel and admitted their response should have referred to the postcard’s “preliminary approval.”
He assured me I wouldn’t receive any more postcards because EWS placed me on an internal do-not-mail-list. That hardly meets my demand to cease deceptive mailings. I asked, “When did that happen?”
He corrected himself to say, “It would be effective this week.” He went on to admit only manufacturers could offer warranties and his company should not promote the term. The company has re-branded itself as Endurance to avoid warranty, but it’s difficult because most Internet searches use terms like extended warranties or auto warranties.
He revealed the VPA had hired an independent law firm to visit EWS for an on-site audit on February 2-3. He also promised to send me a written response to my Washington complaint, which the state had reminded him was overdue.
My Google search on “Endurance Auto Warranties” turned up a number of companies that led to EWS, such as Endurance, Endurance Protection, and Endurance Direct. They all displayed the same logo. I clicked on a sidebar advertisement for “Endurance Protection for auto warranty services” and submitted information on my Pilot. I received email hours later from an agent who promised to call me.
The fourth item on my Google search linked to the BBB website’s report on Endurance Warranty Services. The BBB had suspended its report because the firm is under investigation.
Early the next morning VPA sent me an email that said in part, “You are correct, we do not publish specific guidelines for a compliant postcard.”
I talked with two other sales agents who repeated the deceptive sales techniques. On January 29 I forwarded my findings to VPA, adding my concern about dismissing agents because they had mastered the same sales techniques as the terminated agent. VPA responded with a promise to forward the information to the auditing attorneys.
Chernawsky’s written response to my Washington complaint had not arrived by February 2. However, he’s been focused on an audit.
Stay alert.
After investigating I filed complaints with the BBB in Chicago and the office of Washington’s Attorney General. My complaints demanded EWS cease deceptive mailings and telephone sales practices. What has happened since is the good and bad news about the power of consumer action.
EWS responded to my complaint. It terminated the agent because “the practice of telling [complainant] that it is his last chance of obtaining a warranty is unacceptable.” But its response raised questions and since the BBB assumes complaints are resolved without a second response from the complainant, I insisted my complaint wasn’t resolved. For example, EWS stated: “The mailing sent followed all VPA guidelines for a compliant postcard.”
VPA is the Vehicle Protection Association, an industry membership organization with guidelines of professional conduct. My response asked, “Where would I find the VPA guidelines for compliant postcards? My search on the VPA website Standards of Conduct did not identify guidelines for postcards. I used the VPA consumer feedback form to request postcard guidelines but have not received a reply.”
A few days later EWS sent me another postcard. That postcard has a different customer number, targeted my Honda Pilot and posted a deadline date of January 26. The deceptive wording was identical. I planned to call.
Before I called EWS, EWS called me. Paul Chernawsky identified himself as EWS internal legal counsel and admitted their response should have referred to the postcard’s “preliminary approval.”
He assured me I wouldn’t receive any more postcards because EWS placed me on an internal do-not-mail-list. That hardly meets my demand to cease deceptive mailings. I asked, “When did that happen?”
He corrected himself to say, “It would be effective this week.” He went on to admit only manufacturers could offer warranties and his company should not promote the term. The company has re-branded itself as Endurance to avoid warranty, but it’s difficult because most Internet searches use terms like extended warranties or auto warranties.
He revealed the VPA had hired an independent law firm to visit EWS for an on-site audit on February 2-3. He also promised to send me a written response to my Washington complaint, which the state had reminded him was overdue.
My Google search on “Endurance Auto Warranties” turned up a number of companies that led to EWS, such as Endurance, Endurance Protection, and Endurance Direct. They all displayed the same logo. I clicked on a sidebar advertisement for “Endurance Protection for auto warranty services” and submitted information on my Pilot. I received email hours later from an agent who promised to call me.
The fourth item on my Google search linked to the BBB website’s report on Endurance Warranty Services. The BBB had suspended its report because the firm is under investigation.
Early the next morning VPA sent me an email that said in part, “You are correct, we do not publish specific guidelines for a compliant postcard.”
I talked with two other sales agents who repeated the deceptive sales techniques. On January 29 I forwarded my findings to VPA, adding my concern about dismissing agents because they had mastered the same sales techniques as the terminated agent. VPA responded with a promise to forward the information to the auditing attorneys.
Chernawsky’s written response to my Washington complaint had not arrived by February 2. However, he’s been focused on an audit.
Stay alert.





reading this blog is a complete waste of time
Reply to this
Consumer activism is the single most important way to influence corporate decision-making. The market for ethical consumerism has been growing at 14% per annum with the latest Ethical Purchasing Index and produced by Cooperative Bank...
http://www.alaxlimousine.com
Reply to this
the market is growing,on a very large scale,we should also change our strategy and thinking according to it.
Reply to this