ST PAUL, Minn. — The Department of Commerce is warning Minnesota homeowners of bogus warranty letters being sent out by companies with names like "Home Warranty Direct" or "Home Warranty Solutions."
The letters use fake warnings that tell the homeowner that their warranty is expiring or may be expiring even if that person never had a warranty.
"The letters appear to be official documents but are simply fraudulent attempts, likely by criminals outside the United States, to collect your credit card or bank account information," the news release states.
The letters will also usually make false claims that their bogus company has a relationship with the homeowners' mortgage company or county deeds office.
A home warranty is a contract that generally covers the financial cost of replacing or repairing appliances and things at your home.
State officials encourage homeowners who want a home warranty to do research.
"We recommend asking for referrals, checking the warranty company's website and understanding the coverage you need and possible warranty exclusions," said Jacqueline Olson, Commerce's Assistant Commissioner for Enforcement, in the news release. "If you receive an unsolicited offer, definitely don't give out your credit card or bank account information until you're sure the offer is legitimate."
Homeowners who received a letter from Home Warranty Direct, Home Warranty Solutions or another bogus company and want to file a complaint, contact the Department of Commerce at consumer.protection@state.mn.us or 651-539-1600 or 800-657-3602. To report suspected mail fraud, contact the U.S. Postal Inspection Service.
