How to Spot a Shady Car Warranty Business: Lessons from Safeguard Auto Direct’s Unresolved Complaints

Better Business Bureau (BBB) advises consumers to use caution when doing business with Safeguard Auto Direct, a vehicle service contract company located in Saint Peters, Missouri. Consumers reported to BBB that the company failed to cancel contracts in a timely manner, did not issue refunds, used misleading advertising, and provided poor customer service.

Safeguard Auto Direct has an “F” rating, the lowest on BBB’s scale, due to recent unanswered and unresolved complaints. The majority of consumer reviews received by BBB about the business are negative. Consumers from 28 states filed complaints against Safeguard Auto Direct. Nearly 80 complaints have been filed.

A Pecos, New Mexico, man told BBB he received a mailer from the business in November 2020. He said he believed it was from his car manufacturer because of the way it was written and called the number on the mailer. He said he purchased a service contract for $450 while on that call. He checked with his car dealer the next day and was told his vehicle already had coverage under an existing plan.

The man called Safeguard Auto Direct back to cancel and was told he could not cancel nor could he receive a refund.

“I had to close that bank account because I feared they would draw more money from it,” the man told BBB. “I was a little concerned (by the mailer), which is why I called them in the first place.”

As of May 2021, the man said he has not received a refund from Safeguard Auto Direct.


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