Breaking News
More () »

Home warranty letter: Why the BBB calls it deceptive and misleading

The letter appears to come from your mortgage lender, but that's not true.

GREENSBORO, N.C. — You get all kinds of things in the mail, but the Better Business Bureau is describing this piece of mail as deceptive and misleading. 

It's not being called a scam, and it's not illegal, but you need to be aware of it. 

It's a letter with a check attached at the bottom that appears to come from your mortgage lender and is about your home warranty. The letter and check are made out to you, not just 'the homeowner'. 

"It's misleading in terms of there is no information about who sent it. It's misleading because it implies there is a deadline. It's misleading because it implies it comes from your lender and it's misleading because it implies you already have a home warranty, none of which is true." said Lechelle Yates of the Better Business Bureau. 

This letter says the check is a $199 renewal voucher, but of course, it doesn't tell you how much the actual warranty costs. When 2 Wants To Know called the number today, the company only identified itself as the Home Warranty Department. 2WTK  had to ask-- what company is this? The answer is Home Warranty Direct.

That company has an F-rating with the BBB.

"Some consumers may be asking, how did the company get my mortgage information? A lot of that information is public record and can be found on the internet," said Lechelle Yates of the BBB.

Again, this mailer which the BBB considers an ad is legal but in their words, it is misleading. No one should be made to believe they have a service and need to pay for it-- when they don't.


Before You Leave, Check This Out