Do Not Call. Seems easy enough to understand. But some companies just don’t adhere to the law, which says commercial telemarketers can’t bug you if you’ve registered for the federal Do Not Call list. In particular, the Federal Trade Commission and state attorneys have declared war, so to speak, on a number of companies that advertise so-called extended vehicle warranties through the use of deceptive “robo-calls” and official-looking postcards similar to the one on the left.
A few months ago, All Consuming tipped you that the Washington Attorney General’s Office is leading a 40-state investigation into these types of businesses. Many of these companies make it appear that they are associated with your car’s manufacturer but it’s not true. Their pitches are designed to pressure you into buying an expensive service contract.
While our investigation moves forward, a number of other officials are swooping in too:
- Feb. 5: North Dakota’s attorney general brings action against Moneymaker and Fortress Secured.
- May 5: Indiana’s attorney general requested a temporary restraining order against SVM and Fortress Secured.
- May 13: The Arkansas Attorney General filed a case against three defendants: Automotive Warranty Solutions, Dealer Warranty Services and Vehicle Services.
- May 13: The Federal Trade Commission filed complaints against Voice Touch, its business partner Network Foundation and client Transcontinental Warranty. A judge issued a temporary restraining order.
- May 13: Oklahoma filed a complaint against Stored Value Marketing and Automotive Warranty Solutions.
- May 14: Kentucky filed suit against SVM and related companies.
- May 14: Texas filed suit against three defendants: SCM Media, On Point Media and Pacific Guard Warranty.
- June 23: Arkansas filed two more suits in federal court, this time naming Explicit Media and SVM.
Read the FTC's tips on how to steer clear of deceptive warranty scams.
Have you received any robo-calls lately advertising car warranties/service contracts?