Schumer, Warner Announce Feds' Plan to Sue Companies Behind Bogus 'Car Warranty' Phone Scams—Say Robo-Dialed Harassment Set to Be Terminated

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SCHUMER, WARNER ANNOUNCE FEDS' PLAN TO SUE COMPANIES BEHIND BOGUS 'CAR WARRANTY' PHONE SCAMS—SAY ROBO-DIALED HARASSMENT SET TO BE TERMINATED

FTC Investigating Automated Calls That Warn 'Your Car Warranty Has Expired' - 300,000 Incidents Logged Nationwide

Scam Artists Generate Numbers Randomly and Repeatedly So Americans Still Getting Calls Even If They Are on the Do Not Call List

Both Senators Received Phony Calls On Their Personal Cell Phones

Calling it an overdue crackdown on a nationwide nuisance, U.S. Senators Charles E. Schumer (D-NY) and Mark Warner (D-VA) revealed Tuesday that the Federal Trade Commission (FTC) has investigations underway into the rampant robo-calls that pitch bogus car warranties and said the agency expects to bring cases against the companies responsible in a matter of days.

The senators unveiled a letter from FTC Chairman Jon Leibowitz declaring that "law enforcement action in this area can be expected imminently." The commitment came a day after Schumer, in a news conference in Manhattan, called on the agency to put a stop to the practice that has generated 300,000 inquiries over the last two years, according to the Better Business Bureau. The spam calls have targeted Americans randomly on both call phones and land lines, even when the victim is on the federal "Do Not Call" registry. The call plays an automated message that offers a deal on an extended car warranty.

"It's about time these robocalls were terminated," Senator Schumer said. "This prompt, aggressive action by the FTC should provide a bit of relief to the Americans besieged by these fraudulent calls. Almost everyone knows someone who's received these calls. It's about time we find out who's behind them, and put a stop to this harassment."

"In addition to violating the ‘Do Not Call List' law, these scammers are peddling phony car warranties that exploit consumers," Senator Warner said. "We've heard of Virginians receiving these calls when they do not even own a car, and others who are understandably upset that the automated calls tie-up their phone lines, costing them time and money. We appreciate this prompt action by the FTC to help consumers through a swift investigation and prosecution of these con artists."

Schumer and Warner said they themselves have both received these calls in recent weeks.

The scam begins when someone's cell phone rings from an unrecognized number. The caller then turns out to be a computerized voice selling car warranties with voice starting out by saying "Out of warranty? You are still eligible to reactivate warranty coverage. This is the final call before we close the file." The recording typically gives the caller an option to stop receiving calls, usually saying "press two to be removed from the follow up list." However, the calls continue to come. The company making the calls has no idea what car a person is driving because the calls are randomly generated, so their contention that your warranty "is about to expire" is bogus.

In his letter to Leibowitz on Sunday, Schumer wrote, "Not only are these calls a nuisance, but they tie up land lines and can eat up a user's cell phone minutes, possibly leading to a higher cell phone bill due to overage charges. Consumers should not have to pay in both money and time for this or any other type of robo-dialer harassment."

Yesterday, Schumer spoke with Leibowitz and was assured that the consumer-protection agency was investigating the companies behind the deceptive, aggravating calls. Leibowitz also pledged to place a prominent link on the FTC's homepage to allow Americans victimized by the vexing calls to lodge a formal complaint.

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