The cold-callers pressure the weak to pay thousands of pounds for fake insurance coverage.
Victims are coerced into signing monthly direct debits of around £10 or £20 to cover household appliances such boilers and washing machines.
Which? is a consumer body. It surveyed 1,300 consumers and discovered that nearly a quarter of them had received unanticipated calls regarding insurance or extended warranties within the past year.
The vulnerable are being pressured by cold-callers to pay thousands of pounds for fake insurance coverage.
They reportedly inform victims that the policy expires and must be renewed.
Some callers claim to come from well-known businesses, and they can access personal information that makes it appear the victims are being scammed.
One 92-year-old grandmother paid £10,000 for two years of cover, including for a dishwasher she did not own.
Gareth Shaw from Which? Gareth Shaw of Which? stated: “If someone cold called you about appliance coverage, get the name of the company and inform the Information Commissioner’s Office.”
Victims are coerced into signing monthly direct debits of around £10 or £20 to cover household appliances such boilers and washing machines
Which? conducted an investigation. Which? conducted an investigation and found that many companies were appearing time after time, most of them based or connected to Bournemouth.
As the worst offenders, the consumer group KG Assist and Home Utility Services Ltd was named.
These violations were reported to National Trading Standards, which is currently investigating. They did not respond to our requests for comment.
The websites of many firms look similar. Callers often use the same company names on the phone and another on their bank statements.
Anybody who is lied to or has had a direct debit set up without his permission may be entitled to money back.
Which? The Which? recommends against cold calling and that you purchase insurance directly from licensed firms.
Shaw said that he had also discovered how unscrupulous companies target vulnerable individuals – sometimes charging thousands of pounds for appliances that do not exist.
“If you’re being bombarded with cold calls constantly, please ask your telephone network whether it has call blocking or other services.