Chambers Bank customers have recently reported receiving letters in the mail from the "Home Warranty Division," urging them to call a number about a time-sensitive matter concerning their mortgage, in most cases citing a home warranty coverage about to expire. It’s smart to question any communication you receive like this, especially when something just doesn’t seem right. After reviewing several copies of these letters, we can confirm that this is a scam. Our advice to customers: disregard these notices when you receive them.
What do these letters look like and what do they say?
These letters may come from Home Warranty Direct or other similar companies. Some of these letters will reference the name of the bank where you received your mortgage loan.
The letter asks the recipient to respond to the notice by a certain date and warns that failure to respond could result in a potential loss of coverage. Typically, whenever threatening language or undue urgency is used, then it is likely the communication is coming from a scammer.
This scam is especially convincing because it is sent through the mail. These letters may look similar to the example below.
Who is sending these home warranty notices?
There is a disclaimer at the bottom of the letter stating that it is "not affiliated with your mortgage lender," but could also cite a company name different from your bank or lender. We recommend always searching for information on any company you are unfamiliar with to find reviews and Better Business Bureau information about its legitimacy.
How did the senders get my information?
At Chambers Bank, we’re committed to protecting our customers’ personal information. We do not sell or distribute any private and non-public information to non-affiliate third parties.
However, some information about mortgages, regardless of what lender you work with with, is public record. That’s how scammers like this can obtain your contact information. Often, you can tell that a scam is likely when the account number that is referenced does not match your loan account number with your financial institution.
What happens if I call the number on the letter?
Calling the number listed on the letters may connect you with a real person, or it may direct you to an automated recording. In either case, it is important that you do not give out your personal information. Doing so could result in consequences to your privacy and finances.
What should I do if I receive this letter?
The best course of action is to disregard the home warranty notice and dispose of it the same way you would any other piece of junk mail. We always recommend shredding any mail that contains personal information for extra security. In addition, you may contact us directly if you are in doubt about the origin of any communication you receive that references Chambers Bank.