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On Your Side: Product Warranty Exposed
posted 07/15/08 6:10 pm
ABC 7 News - On Your Side: Product Warranty Exposed
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-WJLA SCRIPT-

ROSS MCLAUGHLIN:


WOULD YOU PAY 2 GRAND FOR THIS? THAT'S WHAT AN ARLINGTON WOMAN GOT BILLED. SHE THOUGHT SHE WAS GETTING AN EXTENDED CAR WARRANTY..BUT GOT A PRODUCT WARRANTY FOR AN ENGINE OIL ADDITIVE INSTEAD AND IT COST MORE THAN HER CAR IS WORTH.

STORY:


THIS 95 FORD ESCORT IS RUNNING NOW... 

Ross: "That's good, come on out." 

BUT LOSSIE WILLIAMS DOESN'T KNOW FOR HOW LONG. THAT'S WHY SHE ANSWERED THE CALL FOR AN EXTENDED AUTO WARRANTY. 

Lossie Williams: "Check engine light kept popping on and my car was cutting off." 

SO SHE AGREED TO PAY TWO GRAND FOR WHAT SHE THOUGHT WAS AN EXTENDED WARRANTY. THEY GOT HER DOWN PAYMENT OF 295 DOLLARS BY GETTING HER ACCOUNT INFORMATION...BUT WHEN SHE GOT THE PAPERWORK...BUT IT GAVE HER NO PEACE OF MIND. 

Ross: "This is the product they sent you?"
Lossie Williams: "Yes, that's the product they sent me." 

SHE DIDN'T BUY AN EXTENDED WARRANTY AT ALL, IT'S A PRODUCT WARRANTY...FOR AN ENGINE OIL ADDITIVE. 

Lossie Williams: "Dang, that's messed up." 

SURE IS...IT'S SUPPOSED TO COVER LUBRICATED PARTS...BUT MOST OF THE 8 PAGE DOCUMENT DEALS WITH PAYMENT PLANS AND WHAT'S NOT COVERED. EVEN IF SHE HAS A TOTAL ENGINE FAILURE IT WILL ONLY PAY OUT THE CASH VALUE OF HER CAR WHICH AT BEST IS 13 HUNDRED DOLLARS. THAT'S 700 DOLLARS LESS THAN THE WARRANTY. 

Ross: "How do you feel about it now?"
Lossie Williams: "I feel, I feel, I feel jacked up I feel ripped off." 

Ross: "Does that look like an extended warranty to you?"
Pete Kapitan/Mechanic: "No, not at all." 

CERTIFIED MECHANIC PETE KAPITAN WEIGHS IN. 

Pete Kapitan/Mechanic: "Conventional motor oil lubricates your parts just fine as long as you change your oil regularly." 

THE COMPANY DURALUBE HAS BEEN IN TROUBLE WITH THE FTC BEFORE FOR DECEPTIVE ADVERTISING AND WHEN WE ASKED ABOUT THIS EXPENSIVE PRODUCT WARRANTY BEING SOLD THE COMPANY TOLD US IT HAS TURNED OVER THE MARKETING OF THE WARRANTY TO ANOTHER FIRM. 

Lossie Williams: "He wore me down." 

AND THAT'S THE PROBLEM...VIRGINIA'S ATTORNEY GENERAL SAYS BEWARE OF OFFERS OVER THE PHONE. 

Bob McDonnell: "Show me what you've got in writing don't commit to anything over the phone." 

LOSSIE WAS CONFUSED, AND THAT'S HOW WE CONVINCED THE SELLER OF THE PRODUCT WARRANTY... 

Ross: "We got good news." 

TO GIVE LOSSIE HER MONEY BACK... 

Lossie Williams: "Wonderful. I'm so happy oh my God I really need that money. Thank you." 

ROSS MCLAUGHLIN IN STUDIO:


THE RESELLER OF THE DURALUBE WARRANTY CLAIMS THEY GOT LOSSIE'S PERMISSION OVER THE PHONE. YOU SHOULD NOT AGREE TO ANYTHING OVER THE PHONE WITHOUT SEEING THE OFFER FIRST..AT LEAST ONE STATE, MARYLAND HAS GONE A STEP FURTHER MAKING IT ILLEGAL TO CHARGE THE CONSUMER BEFORE A WRITTEN CONTRACT IS SIGNED.

YOU CAN GET MORE CONSUMER INVESTIGATIONS ON OUR LIVE HALF HOUR SHOW "INSIDE 7 ON YOUR SIDE" LIVE AT 8:30PM TUESDAY. IT AIRS ON OUR SISTER STATION, NEWSCHANNEL 8. 

»Consumer Alert: Be Wary of Offers for Automobile Extended Warranties Alert

ON THE NET:

»Do Not Call List
                Consumers who wish to add a phone to the "Do Not Call" database can do so by calling:
                1-888-382-1222 (TTY 1-866-290-4236).
»Consumer Alert: Car Warranty Scam

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