Arkansas BBB warns of home warranty deceptive advertising

Arkansas homeowners are being targeted by a deceptive advertising campaign that appears to be from their mortgage company. According to numerous BBB Scam Tracker reports, the letters are a deceptive solicitation for a home warranty service. 

How the scam works

You receive a letter that appears to come from your mortgage provider. It’s allegedly from the company’s “Home Warranty Dept,” and claims that your home warranty must be renewed.

One BBB Scam Tracker report noted: “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 $199.00. It’s not a check: it’s an attempt to get you to 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.

Recent examples submitted to BBB vary widely in appearance and presentation. Still, they have two things in common – they all ask the homeowner to take urgent action on their home warranty, and they all appear to come from the homeowner’s mortgage company.

New homeowners may be particularly at risk for buying into these deceptive claims.