Homeowners warned about warranty scam letters

COLUMBUS, Ohio (WCMH) – Homeowners may want to do a double take if they get a letter in the mail urging them to buy a home warranty.

The Better Business Bureau said the letter could be a scam.

Homeowners who have received an unexpected letter from Home Warranty Renewal should look closely and think twice before buying.

The Better Business Bureau has issued a warning about home warranty scams after several central Ohioans reported receiving solicitations just like this.

Each letter makes the same claim, implying an affiliation with the homeowner’s mortgage company and that it is a “final attempt to notify” the recipient that “without a home warranty, they are at risk of being financially liable for any and all repairs,” but, “there is still time left to activate a warranty.” The letter even includes a renewal fee voucher for $199.

The letter also creates a false sense of urgency, demanding a response within five days, after which, Home Warranty Direct” has “the right to revoke your eligibility.”

The Better Business Bureau said threatening language and unnecessary urgency are almost always indicative of a scam.

For homeowners who are interested in a legitimate home warranty, the bureau said it’s best to do business with reputable retailers, not strangers. The bureau urges homeowners to take the time to research real companies, weigh their options, and read the terms closely before signing any contracts.

If you’re wondering how these scammers know the name of your mortgage company, some information about mortgages such as the name of the lender and servicer is public record and can be found online. The information gives the scammers the appearance of being legitimate.