The home warranty vendor is attempting to enroll homeowners in one of the most unethical scams currently taking place, wherein fraudsters and impostors often prey on homeowners for financial gain.

What is even more alarming is that the promotional correspondence does not resemble sales literature. Instead, they seem to be originating from the local registrar of titles.

Various states are cautioning their residents about these unwanted and misleading letters.

Home has zero intention of fulfilling their promises or taking responsibility for homeowners’ actual warranty plans. Instead, they employ a deceitful marketing tactic where recipients are instructed to call a number or bear the costs of repairs. The attached notices from Direct Warranty Home claim that the recipients’ home warranties are expiring, making them the final notifications. These letters contain something resembling a check, called a Registration Fee Voucher, which demands a payment of $199.

The letters contain the homeowner’s personal details like their name and address, along with the mortgage company associated with the property. The inclusion of genuine information regarding the homeowners’ ownership adds credibility to the scam, as remarked by the Sedgwick County District Attorney in Kansas. This information is sourced from publicly available property records.

They have nothing to do with the actual homeowner’s mortgage company. Obviously, they aim to bamboozle recipients into believing that they are not connected in any way to a government entity. Here’s an image of the letters, courtesy of the Witchita Eagle.

State Attorney General Ellen Rosenblum is encouraging Oregon homeowners to acquire warranties in response to this correspondence. Homeowners in numerous states have also received comparable letters.

Is the Home Warranty Business Inherently Shady? No…

This is one of the best reasons to enlist the services of a real estate agent with experience in purchasing a home, as buyers need access to insights that can help them avoid devious vendors and ask for home warranty coverage if the home has a decent number of old appliances.

Be significant. The warranty on a home contract service simply focuses on the home’s systems and appliances such as plumbing, electric, water heater, laundry and kitchen appliances, and HVAC. It may also cover big incidents like plumbing and electric issues, water heater problems, and even the home’s HVAC system. However, it is important to note that home warranties are not the same as homeowner’s insurance policies, which are geared towards covering incidents that can have a significant impact on the value of the home.

So, how do these plans operate? Unless the seller provides the warranty as part of the purchase agreement, a homeowner is required to pay a monthly or yearly premium, as well as the service fee whenever a technician is summoned to the residence. A standard home warranty plan will compensate up to two or three thousand dollars for a technician’s visit and the repair or substitution of an appliance or system. The charge for the visit is typically around $100 or $125. Troublesome businesses have concealed deductibles and provide customers with evasive responses to reasonable claims.

Although home warranties can be useful for purchasers of older houses, even the reputable ones have strict limitations.

☛ Here are some things to consider When Your Seller Offers You a Home Warranty – Instead of Repairs.

Alternatively, by selecting the replacement system’s brand and the qualified professional who provides service, you can designate the reserve account for upkeep and protect yourself from incurring expenses related to appliance repairs.

Look Out for “Urgent” or Menacing Language in Letters

The Department of Consumer Protection’s Division, which operates within the county’s District Attorney’s office, calls for recipients of the $199 sales pressure tactics letters to discuss and report any formal complaints against scammers. Oregon’s Department of Justice also urges recipients to lodge formal complaints and provides complaint forms. Officials caution against responding to the high-pressure tones used in these oddly written letters.

What if you’re uncertain whether the communication you have received is genuine or not?

Be cautious if the company creates obstacles in reaching their customer service. If you have the option to contact or correspond with a representative from the company, is it effortless or challenging to locate? Seek indications of a reputable enterprise, or the lack thereof.

Instead of navigating through a message, it is advisable to contact a company if you wish to communicate. Refrain from selecting links in any form of communication that you did not initiate or anticipate, and exercise extra care when dealing with emails and text messages.

What is the reason for the marketing material being transparent regarding the company’s whereabouts and identity? Has the company obtained the necessary authorization to conduct operations in your state? If it is challenging to obtain information about the business and the experiences of its customers, what could be the cause? Unearth the experiences of individuals who have interacted with the business and have made claims. Conduct a search for feedback from customers. Examine the company’s website.

Don’t submit personal or financial information if you have any doubts about who is contacting you, and exactly what they are after.

Steering Clear of Scams in 2023: Key Takeaways

In 2023, numerous fraudulent activities are happening. Some are replicas of previous plots, while others are more innovative. Be aware that there are numerous fraudulent activities taking place if you weren’t anticipating any news or offers from a company.

Be cautious of marketing material cleverly disguised as instructions and seemingly official letters that may not actually be genuine, coming from the mortgage company. Pay attention to any intimidating or rushed language and make sure to conduct thorough research on the company that reaches out to you. Exercise caution and remain vigilant.

Supporting References.

Derby [Kansas] Informer via DerbyInformer.Com: County Residents Alerted of Deed Fraud (Feb. 8

D.A. Advises against falling for the scam if you received an unsolicited $199 “Check” in the mail, as reported by The Wichita Eagle (McClatchy Media Network) Crime and Courts on Jan. 30, 2023.

Ben Walker, CEPF for FinanceBuzz.Com, a division of Buzzery, LLC: How to Identify a Home Warranty Fraud (updated Feb. 3, 2023).

Vermont Federal Credit Union in South Burlington, VT: Security Alert: Mail Fraud (Oct. 17, 2022).

Oregon Department of Justice: Beware of This Home Warranty Scam (Aug. 17, 2022).

And as linked.

Photo credits: Gustavo Fring and Mikhail Nilov, via Pexels.