Auto warranty calls and notices are some of the most complained-about offers in the country. Here is how to check one before you pay.
What regulators say
The Federal Trade Commission has warned for years that prerecorded auto warranty calls are illegal and likely scams. The agency advises hanging up without pressing any number, using a call-blocking tool, and reporting the call at donotcall.gov. Callers in these schemes often claim, falsely, to be connected to your dealer or your vehicle's manufacturer, and many were selling service contracts that cost hundreds or thousands of dollars.
The FTC has also taken action against companies that sold vehicle service contracts with misleading promises. In one case that ended in a settlement, the company advertised broad protection, but the written contract, sent only after a payment, listed many exceptions.
Red flags
- A recorded voice, or a caller who says your warranty is about to expire.
- A claim to be the manufacturer or your dealer, or to have your "file."
- A mailer styled like a government or dealer notice, or a deadline that pushes you to call now.
- A request for payment before you have seen the contract.
- A price that is far below every other quote, or coverage described as complete.
- Refusal to name the administrator or send a sample contract.
How to verify any seller
- Do not call the number on a mailer. Look up your dealer or manufacturer yourself and ask whether the notice is real.
- Get the company name and the administrator's name. Then check both on their own sites, and check your state insurance department for any service contract registration rules.
- Ask for the contract in writing before you pay. Confirm it matches what you were told, including the waiting period, deductible, exclusions and cancellation terms.
- Look for the company's physical address and a working phone number.
- If you did not ask to be contacted, ask to be put on the company's internal do-not-call list and be wary if it continues.
Warranty or service contract?
A factory warranty comes with your vehicle. A service contract is sold separately. Both can be called an "extended warranty" in advertising, so the wording alone tells you little. Our page on plan, insurance and warranty explains the differences.
About similar names
Silver Creek is an independent, third-party seller and comparison hub. We are not affiliated with other companies that have a similar name. Our websites are silvercreekwarranty.com, silvercreekhub.com and silvercreekhub.net. If you are not sure whether a call, letter or website is ours, contact us at cs@silvercreekhub.com or (832) 803-7363 and we will confirm.
If you think you were targeted
Report it to the FTC, tell your state attorney general, and keep any letters, call details and contracts. If you already paid, contact your card issuer promptly and ask about your options.