News & Media
NEW YORK — If you get an unexpected letter from your mortgage company, look closely. According to numerous Better Business Bureau (BBB) Scam Tracker reports, some letters are a deceptive solicitation for a home warranty service.
It may appear to come from your mortgage provider. It’s allegedly from the company’s “Home Warranty Dept” and claims your home warranty must be renewed.
Before worrying, look closely at the letter and see what’s happening. One BBB Scam Tracker report noticed: “At the very bottom of the letter in small print is the comment, ‘Not all consumers have previous coverage. We are not affiliated with your current mortgage.’ “
Another homeowner reported, “The mailing is made to look like a check: it has the tear-away sides and inside is a ‘Renewal Fee Voucher’ for $199. It’s not a check: it’s an attempt to get you sign up for a home warranty.”
If you don’t read the fine print or it doesn’t appear in the letter you receive, you’ll likely be concerned your home warranty has lapsed and your mortgage is at risk.
You won’t be dealing with your mortgage lender if you call the number and “renew” your warranty. Instead, you will have given money and personal information to a company that employs deceptive advertising tactics.
This scheme is similar to the extended car warranty calls. The product may be real, but there are several things to consider before buying an extended warranty. Also, you want to avoid doing business with a company that resorts to misleading sales techniques.
The BBB offers these tips for avoiding similar scams:
- Go to the source. If you receive any correspondence about your mortgage or home warranty that you aren’t sure about, don’t use the contact information in the message. Instead, call your lender directly to inquire about the matter. Look up their contact information separately on your mortgage bill or search for your lender’s customer service line on their website.
- Watch out for high-pressure offers or threats. Don’t let scammers pressure you to act immediately, even if they say you could lose your home. If someone tries to use scare tactics, stop communicating with them and contact your bank or lender directly.
- Never provide financial information over the phone to someone you don’t know. If you’re being asked to urgently pay for something over the phone, hang up. Never provide your credit card or banking information over the phone, and be aware of common red flags of scams like paying for something with a prepaid gift card, a wire transfer or through a digital wallet app.
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