Watching the Warranty: When a third party company goes out of business, where’s the protection?

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CHICAGO -- A Chicago woman feels scammed out of hundreds of dollars after the company she used to purchase a vehicle warranty went out of business.

NaShanta Fletcher, who works at WGN’s Art Department, reached out to WGN Investigates after she couldn’t contact the company when she needed a repair.

Wanted Auto Protect which is based in New Jersey went out of business but issued on apology on its website.  The Better Business Bureau says 79 complaints are registered against the company.

In addition, The Federal Trade Commission has issued a consumer alert on its website about third party warranties.  These are warranties not issued by the manufacturer.  The FTC reports that a string of them have gone out of business.

Fletcher spent $1,500 on a five year warranty.  The BBB does not believe she will be refunded the money.

 

Here’s the FTC’s report detailing warning signs if you’re looking to purchase a third party warranty: https://www.consumer.ftc.gov/articles/0054-auto-service-contracts-and-warranties