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Marketing Hall of Shame: Automated Car Warranty Calls
If you own a phone, even a work or cell phone, you’ve probably gotten this call. It can come from a variety of source numbers (often spoofed or otherwise masked), and it’s always an automated recording. It usually claims to be the “second and final” notice (even after multiple calls), and it warns the recipient that their car warranty is near expiration. Of course, it offers information on how to buy an extended warranty.
So other than the annoyance factor, why does this particular telemarketing call deserve to be in the Marketing Hall of Shame?
First, the call source disregards the national Do Not Call list. Any and every phone number out there can be one of targeted numbers, despite the fact that it’s illegal for telemarketers to bother people on the Do Not Call list. Of course, the spoofed numbers hide the real source of the calls, so disgruntled recipients of the call can’t call back and complain, or even report the number with any chance of the government catching the caller.
Second, the call is not targeted at people who actually have car warranties, or even people who actually have CARS. It’s a blanket telemarketing attempt, conducted nationwide, without regard for who the call recipients are. The “second and final” notice is a scare tactic that isn’t remotely accurate. Imagine the frustration of the public-transit riders out there who get calls about the expiring warranties on their nonexistent cars! These calls are so widespread and so annoying that they’ve generated articles on multiple websites and investigation from multiple state governments. That’s quite a broad scope for a telemarketing scam.
Third, the calls are repeated relentlessly. Some people on consumer complaint websites comment that they’ve received this call dozens of times, often in the same day. I’ve personally received this call on my cell phone about once a week for the past few months.
Fourth, if the recipient stays on the line and speaks to a live person in an effort to clear up the apparent confusion, their requests to be removed from the call list tend to be ignored. Again, many people on consumer complaint sites say that they’ve asked to stop receiving the calls, but despite assurances that they will be removed from the calling lists, the calls continued.
Fifth, for those who actually purchased the extended warranty offered in the calls, the coverage turned out to be less than ideal. The telemarketers don’t represent the car manufacturers, and getting reimbursed for car repairs can be difficult, according to the Iowa Attorney General’s office (as quoted in the New York Times).
Last, for some of these telemarketing calls, there’s more than just annoyance at stake. Some of these car warranty calls are actually attempts to steal the identities and information of the call recipients. The callers use the same “final notice” scare tactics to trick people into giving up key personal information. So speaking to the callers can lead to more than just a useless car warranty; it can lead to a credit and identity nightmare.
What is being done to handle this particular telemarketing scourge? According to the New York Times, several state attorney generals are looking into the companies behind the calls in an effort to investigate legal wrongdoing (such as violations of the Do Not Call list) and whether the companies and warranties themselves are legitimate. Telling people that their warranties are near expiration might also be deceptive and misleading sales practices which justify legal action (this seems like a no-brainer, but the states must conduct their due diligence in looking into this case).
In the meantime, if you get a call that starts with “This is your second and final notice,” hang up. You might get more of them, and you might get annoyed by them, but you can do your part to fight back. Call your state’s attorney general office and complain. Go to the Do Not Call website and file a complaint. Make some noise, and the authorities will do what they can to make the calls stop.
To the companies behind the calls, nice job! You’ve become the first telemarketers in Privacy Council’s Marketing Hall of Shame.
Sources for this article: The New York Times, Caller Complaints, The Internet Patrol, Autoblog
Photo source: www.freedigitalphotos.net
