Consumer Alert: Scam Home Warranty Letters

  • Wednesday, June 29, 2022

The Division of Consumer Affairs in the Tennessee Attorney General’s Office is warning homeowners about a home warranty scam. 
 
The letter urges Tennessee homeowners to purchase a home warranty claiming the current home warranty “may be expiring or may have already expired.” Each letter contains the same claim, even if the homeowner has never purchased a home warranty. The letter also heavily implies an affiliation with the homeowner’s mortgage company and the “county deed records” office. The people responsible for these letters are in no way affiliated with the homeowner’s mortgage company or the Register of Deeds office.
 
The letter asks for a response to the notice by a certain date and threatens that failing to respond could result in a potential loss of coverage. Solicitations that use threatening language or unnecessary urgency are almost always a scam.
 
"Many consumers wonder how these scammers know the name of their mortgage company," officials said. "Some information about mortgages, such as the name of your lender and servicer, are public record and that information can be found online. These scammers use the name of your mortgage company in the letter in order to appear legitimate.

"If you are interested in purchasing a home warranty with a legitimate company, we strongly encourage you to do thorough research, as well as check with the Better Business Bureau for reputable companies. As for these letters from Home Warranty Direct, it is recommended that they be ignored and discarded."
 
If you have received this letter or one like it you can file a complaint with DCA here.

Real Estate
Kadi Brown: 2024 February Market Report
Kadi Brown: 2024 February Market Report
  • 3/14/2024

The housing market is showing signs of healthy activity, according to the latest report for February 2024. Existing home sales have seen a notable increase, marking the most energetic pace since ... more

Chattanooga Housing Authority Awarded $20,000 For Resilience Projects At Emma Wheeler Homes
Chattanooga Housing Authority Awarded $20,000 For Resilience Projects At Emma Wheeler Homes
  • 3/14/2024

Chattanooga Housing Authority has been awarded a grant for the Butterfly Effect Program funded in part by the Open Space Institute, in partnership with Thrive Regional Partnership and support ... more

Lookout Valley Motel Sells For $3,410,101
Lookout Valley Motel Sells For $3,410,101
  • 3/14/2024

The Super 8 by Wyndham in Lookout Valley has sold for $3,410,101. It is located at 20 Birmingham Highway. The sale was to Shivsakti Llc from B R Lookout Hospitality Llc. more