Homeowners nationwide are being targeted by deceptive letters urging them to renew their home warranty plans immediately to avoid financial risks. These letters, which may appear official and mention homeowners’ mortgage lenders, are actually part of a scam aimed at obtaining personal information and potentially defrauding homeowners.
The scam, known as the home warranty division scam, involves sending letters that resemble official notices from a home warranty company or a larger corporation’s home warranty division. These letters warn homeowners that their current home warranty plans are about to expire and emphasize the financial risks of not purchasing a new plan.
Common tactics used in these scam letters include phrases like “final notice” and “immediate response requested” to create a sense of urgency. The scammers often pressure homeowners by highlighting potential repair costs and the lapse of coverage if they fail to respond.
If homeowners call the phone number provided in the letter, scammers may attempt to extract personal information or credit card details, putting homeowners at risk of identity theft.
To protect yourself from home warranty scams, it’s important to verify any affiliations suggested in the letter, check for inconsistencies in personal information, be cautious of high-pressure language, and refrain from sharing personal or financial information with unknown entities.
If you suspect you’ve received a home warranty scam letter, report it to your state’s attorney general’s office and the Federal Trade Commission (FTC). These agencies rely on consumer reports to take legal action against scam companies and track fraudulent activities.
In conclusion, stay vigilant and cautious when receiving unsolicited letters related to home warranties. By following these tips and reporting any suspicious activity, you can protect yourself from falling victim to home warranty scams.