Friday 27 May 2011

25/05/2011: SKY Digital TV Extended Warranty Insurance Scam

Warwickshire Trading Standards has been alerted to the re-emergence of a telephone cold calling scam involving the sale of extended warranties. This scam has been circulating for several years.

Consumers have reported receiving hoax calls from businesses who falsely claim they either are, or are affiliated to, SKY TV. The callers are high pressure sales people who use prepared sales scripts to encourage consumers to take out extended and often expensive warranties for their Sky TV digital equipment.

The businesses have no connection to SKY TV but use opening phrases such as "I'm calling about your SKY TV service" or "I'm calling because your SKY warranty is due for renewal" to make consumers think they are calling on behalf of SKY. In fact they are trying to sell their own extended warranty products. Some may even falsely call themselves 'Sky Protect', (Sky's own genuine extended warranty protection plan) in order to mislead consumers and get a sale.

The callers then ask for your bank account details or in some cases your debit card details to set up withdrawals from your account. Consumers have reported difficulty in stopping these withdrawals once they begin.

The callers don't always know if you have SKY before they phone, their calls are generally random.

The extended warranty costs charged by these companies can range from £50 per year to over £170. Monthly direct debits are often set up. Trading Standards Officers advise consumers to consider carefully the cost of any extended warranty against the cost of replacing the item yourself if anything went wrong.

Officers also strongly advises consumers never to provide their personal or financial information to anyone who cold calls. If you think a call is genuine, ask to phone the business back on a publically listed telephone number (for example listed in the telephone directory).

SKY makes it clear on their website that the only extended warranty cover they offer is Sky Protect, provided by Domestic and General Services Ltd. However, Trading Standards Officers understand that some hoax callers may claim they are Sky Protect when they are not.

Consumers wishing to complain should contact Consumer Direct on 08454 040506.

For more information on scams, please visit www.warwickshire.gov.uk/tradingstandards

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