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May 15, 2009

FTC sues extended auto warranty callers

If you're annoyed by telemarketers pitching an extended car warranty on your home or work phone or even your cell phone, here's some good news.

The Federal Trade Commission has filed suit in federal court in Chicago to stop two car warranty companies from calling.

According to the FTC, the suit alleges that the companies --- a telemarketer and a phony auto warranty company --- used pre-recorded random robo-calls to get people to believe that their warranties were expiring. In many cases, the warranties were still valid or had already expired.

But, if people responded, they were pressured to buy extended contracts and were led to believe that the warranties came from the vehicle's manufacturer, prolonging the original warranty. 

A total of five phone numbers resulted in 30,000 complaints to the Do Not Call registry as well as many comments from readers when we first discussed extended auto warranty calls last year.

Here are the FTC's tips for avoiding extended auto warranty scams. If you're a victim, you can file an FTC complaint online or call 1-877-FTC-HELP (1-877-382-4357).

Posted by Liz Kay at 9:50 AM | | Comments (0)
        

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