Finally: Auto Warranty Robo-Call Scammers Busted
You answer the phone, and it's a recorded message:More here.
"By now you should have received your written note regarding your vehicle warranty expiring. This call is to give you a final opportunity to extend coverage before it is too late. Press '1' now to speak to a warranty specialist regarding your options on your vehicle."
Upon pressing "1," you are transferred to a "warranty specialist" who lies to you, telling you he is affiliated with an automobile dealer or manufacturer and that your warranty is up. And before long, you may have agreed to put $450 down on an extended service contract that costs up to $3,000, the balance to be paid in monthly payments.
Or maybe you hang up — only to be called again. And again. Because more than a billion of these automatically dialed "robocalls" have been sent to cell phones, government offices and even 911 operators.
What's surprising is that these billion-plus calls allegedly stemmed from three companies — Transcontinental Warranty, Voice Touch and Network Foundations.
And behind those three companies are four human faces: Christopher Cowart, James and Maureen Dunne, and Kamian Kohlfeld.
Court documents filed last month in a Federal Trade Commission civil lawsuit against the three companies allege that their illegal calls have resulted in at least $10 million of ill-gotten gains since 2007. The FTC alleges that the firms' deceptive practices violated the Federal Trade Commission Act by misrepresenting or omitting material facts in their sales pitches, and that they violated the Telemarketing Sales Rule by "flatly ignoring" rules that prerecorded calls disclose the identity of the seller "promptly, and in a clear and conspicuous manner," according to court documents.
posted by Fergie @ 6/15/2009 09:06:00 PM
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