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Eye on Scams: Home warranty scams
LAFAYETTE, La. (KLFY) -- Scammers are targeting new homeowners pretending to be mortgage companies.
They send a letter that appears to come from a mortgage provider telling you to renew your home warranty.
Chris Babin of the Better Business Bureau of Acadiana said the scammers tell you that your home coverage is going to expire, urging you to call the number provided on the letter.
“Scammers are really good at what they do, they're very convincing," Babin said. "And they will work the story up to where there's going to be bad repercussions for you if you don't pay or take care of what you owe.”
Most people are aware of warranty scam calls, but receiving a letter in the mail makes the notice seem official, which makes the scam easier to fall for.
“We had a recent report that a gentleman's grandmother had received a letter that said final notice, you know, your mortgage is going to lapse," Babin said.
"There's going to be issues with your home's coverage to contact this number. And she did, in fact, call the number. And of course, it was it turned out to be a scam. They were just trying to get financial information and try to steal money from her," he continued.
Here are some tips from the BBB to avoid home warranty scams:
- Go to the source. Don't use the contact information given in the letter. Look up their contact information.
- Watch for high-pressure offers or threats. If they say you could lose your home if you don't act immediately, do not act. Contact your bank.
- Never provide your financial information over the phone. Be aware of the common red flags when asked to pay for something: paying with a prepaid card, a wire transfer or through a digital wallet app.
- If you are shopping for a home warranty, do your research first. Read the terms closely before signing a contract.