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SOMBA K'E/YELLOWKNIFE - A U.S.-based company selling vehicle services by telephone has many Yellowknifers concerned it is an attempted scam.

RCMP issued a press release on Friday stating "numerous recent reports" have come in concerning phone calls, postcards and faxes offering extended warranties for vehicle owners in the NWT.

On Friday, Mitch Dentinger, service manager for Yellowknife Chrysler, said the dealership had received about 20 calls from customers concerned about calls from Canadian Auto Warranty Services (CAWS).

He said the caller representing CAWS told customers their warranty was expired, even if that wasn't the case.

"The tactics are unethical," said Dentinger.

Michael Carter, general counsel for CAWS, said the company is aware of other operations that are not legitimate but said CAWS has gone through Canadian lawyers to make sure its operation met all legal standards.

The operation's call centre, based in St. Louis, Missouri, promotes U.S.-based companies Gold Key and The Choice, which are vehicle service contract providers.

"It's a vehicle services contract," said Carter, a St. Louis-based attorney, of what CAWS is offering.

He compared it to an extended warranty people can purchase after they buy a used vehicle at a dealership.

"We've just taken that to the consumer directly," said Carter. "This is just a way for them to have coverage."

He said the company never claims to be part of any dealership and the cold calls are made in hopes of finding car owners who would be interested in the service.

"We just hope that 80, 90 per cent of (those called) have a car," he said.

The St. Catharines Standard newspaper in Ontario published an article in September 2008 stating the Niagara Regional Police initially released a media release warning people about the company.

"The police in Niagara (region) issued a retraction," said Carter.

Yellowknife RCMP Cpl. Scott MacPherson said there is no investigation involving the company and the press release was put out on Friday in order to warn people about the dangers of releasing personal information to people or organizations they have not dealt with previously.

"We weren't sure if they were a business or not," MacPherson said of CAWS.

He said the RCMP is not calling the warranty company a scam but wanted to make the public aware that this time of year there are scams going on. He said people need to be careful "in regards to giving out personal information."

MacPherson said he was aware the company had been mistaken for a scam by other police divisions in the past.

On Monday afternoon a second press release was issued by the RCMP stating the police had confirmed the U.S.-based company had been contacting residents of the NWT. The release further stated it is "not a good practice to provide any sort of financial or personal information over the telephone if you have not previously verified the business or organization as being legitimate."

According to the Canadian Better Business Bureau website there have been 13 complaints filed against CAWS in the last 12 months in Ontario and all are listed as resolved. The website also lists the business as being based in Niagara Falls, Ont.

There is some hope for people who do not wish to receive the calls. The National Do Not Call List is available for Canadian consumers to register their phone numbers so they do not receive phone calls from telemarketers or to file a complaint about telemarketing calls on the website with the Canadian Radio Television and Telecommunications Commission.