Watch out for companies selling car warranties

TOLEDO (WTOL) - Ed Jordan's Ford Explorer is an older car with no warranty. That's a liability in his eyes so he says when he got the call that offered to sell him a warranty, he jumped on it.

Thinking he was playing it safe, he put down $300 and set up monthly payments.

But when it came time to file a claim, Jordan realized that just like his vehicle, he, too, had failed.

So, he called the National Auto Division -- the company that sells the warranty -- and found out that his claim was denied because he did not pass both the 30-day, 1,000 mile requirement.

Although they have restrictions, the company is in good standing with the Better Business Bureau, and, lucky for Jordan he can get a full refund.

But the BBB's Dick Eppstein says he's had hundreds of complaints. In fact, just calling on a cell phone is against the law so if you get one, be sure to hold for the prompt to be put on the "do not call" list.

Eppstein says safest bet is to go with a dealer or a company in good standing with the BBB.