MN Department of Commerce Warns of Home Warranty Scam

The Minnesota Department of Commerce is warning Minnesotans about a scam that relies on false warnings about home warranties.

The Department of Commerce says homeowners in Minnesota and several other states have received letters in recent months urging recipients to purchase warranties and falsely implying a relationship with the homeowner’s mortgage companies or with county deeds offices.

The letters carry company names like Home Warranty Direct or Home Warranty Solutions.  They use the same language describing warranties that, “may be expiring or may have already expired” even if the homeowner has never had a warranty.  The letters appear to be official documents, but are fraudulent attempts, likely by criminals outside the United States, to collect credit card or bank account information.

The Department of Commerce encourages Minnesota homeowners who are interested in purchasing a home warranty with a legitimate company to do research.

Jacqueline Olson, the Commerce’s Assistant Commissioner for Enforcement said “We recommend asking for referrals, checking the warranty company’s website and understanding the coverage you need and possible warranty exclusions.  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.”