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Thursday, May 14, 2009

Annoying calls - warranty, schmoranty

Federal action against bogus car warranties is ‘imminent’
from Consumer Reports Money & Shopping Blog by Consumer Reports Money & Shopping Blog

The Federal Trade Commission could be just days away from taking action against companies that use spam phone calls to pitch bogus extended car warranties.
Sen. Charles E. Schumer (D-N.Y.) and Mark Warner (D-Va.)
announced that they have received a letter from FTC chairman Jon Leibowitz saying that “law enforcement action in this area can be expected imminently.” Schumer earlier this week called on the federal agency to stop the practice, which has generated thousands of inquiries and complaints to the Better Business Bureau.
The companies use automatic dialing systems to call both cell and landline phones to pitch extended warranties. Federal law prohibits unsolicited “robo-call”
marketing to cells phones generally. In some cases, the calls are being made to numbers that have been placed on the federal “Do Not Call” list,” the senators said. Both added that they too have received such calls in recent weeks.
“In addition to violating the ‘Do Not Call List’ law, these scammers are peddling phony car warranties that exploit consumers,” Warner said, in a statement.
The senators said the typical call from an unrecognized number features a computerized voice saying: “Out of warranty? You are still eligible to reactivate warranty coverage. This is the final call before we close the file.” They said consumers apparently are being called at random and that the company making the call has no idea whether someone’s warranty is about to expire. Although consumers are given the choice to “opt out” of future calls by pressing a key on their telephone, the calls continue, they said.
Even
extended warranties sold by legitimate companies are generally not worth buying, especially if you purchase a car with a top reliability score.—Anthony Giorgianni

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