Marion Peiluck received calls from telemarketers trying to sell her extended vehicle warranties.

Consumer oversight agencies in Manitoba have issued warnings about U.S.-based telemarketers trying to sell extended vehicle warranties in the province.

Manitoba's Consumers Bureau is warning the public about firms trying to sell automobile warranties over the phone without a direct-seller licence. At least two such firms have recently been told not to operate in the province without the direct-sales licence required under the provincial Consumer Protection Act.

The governments of British Columbia and Saskatchewan have gone further, issuing cease and desist orders against Canadian Auto Warranty Services and World Wide Warranties Inc. Those two firms, National Dealers Warranty and Automotive Warranty Protection all operate in Manitoba, the CBC News I-Team of investigative journalists has found. They all are based in Missouri.

The Manitoba Better Business Bureau also is warning consumers to be wary of the latter two companies.

The Manitoba Motor Dealers Association has called some direct-sale warranty offers a "scam" because sellers imply they are calling consumers on behalf of the carmaker or local dealership.

While the firms can legally sell extended service contracts, the consumers groups and dealers associations are objecting to the high-pressure sales tactics they use, and any implication that the companies are calling on behalf of a dealership.

'Your warranty has expired'

Winnipegger Marion Peiluck bought her Suzuki last year with a five-year warranty. She was surprised to receive an unsolicited telephone call about her warranty.

"A lady on the other end of the line said 'Your warranty has expired,' " said Peiluck. "My warranty?" Peiluck hung up and called her local car dealer, who told her the existing warranty was still in place — no problem.

Two weeks later, she received another call from an aggressive salesperson who was calling about her car warranty and wanted her credit card information.

In some calls, consumers are offered a $1,900 to $2,500 extended warranty package for their vehicle. But any claim of a connection to a dealer or auto manufacturer is absolutely misleading, says the Better Business Bureau, which warns many people contacted have older vehicles, generally 1989 to 1998 model years, all well past the manufacturer's warranty. If consumers decline the offer, they are often harassed with further calls or, in some cases, are verbally abused or threatened, says the Better Business Bureau.

The BBB, a business-funded consumer group, noted in its consumer warning that the attorney general in Missouri filed suit against one firm, National Dealers Warranty Inc., for failing to inform consumers the company is not affiliated with the dealer or manufacturer of the vehicle, and that it was selling "extended service contracts" instead of warranties.

Michael Carter, a Missouri lawyer who speaks for the four firms, said the companies never tell consumers that their warranties have expired. Nor do the firms ask for credit card information immediately, he said.

"We don't use credit cards to verify who you are," said Carter. "We don't know anything about your car because the Canadian federal [privacy] regulations are such that you can't. All you can do is open a phone book and hope and pray whoever you're calling or sending your solicitation to has a car."