AT LONG LAST, PROGRESS AGAINST WARRANTY MARKETING COMPANIES!

AT LONG LAST, PROGRESS IS BEING MADE AGAINST THE WARRANTY MARKETING COMPANIES.

For over 5 years, I have written letters to the Office of the Attorney General here in the State of Connecticut, as well as other Federal and State agencies regarding the punishing tactics of various automotive "warranty marketing companies". These completely unrelated companies use abusive tactics in order to "scare" customers into believing that either the manufacturers' or dealer warranty has expired on their vehicle. At that point, they make a "full court press" pitch to sell these unsuspecting customers extended warranties for their vehicles.

Unfortunately, we have had customers that have purchased these warranties. The coverage, we have found, is basically non-existent. Furthermore, the cost they paid for them is extreme. I firmly believe in the value of an extended service agreement. However, it needs to be BENEFICIAL to the customer, not a "scam".

I am providing below a copy of an article from today's NEW YORK TIMES regarding some, long awaiting, federal action against these people. As always, I WELCOME your calls and emails regarding this subject. I appreciate all of you who have participated with calls to me.

Court Issues Order Against 3 Car-Warranty Marketing Firms
By JENNIFER 8. LEE

A federal court in Chicago issued a restraining order on Friday against three companies accused of aggressively making automated calls to sell car warranties across the country, the Federal Trade Commission announced.

The order, which also froze the companies’ assets, came in response to a lawsuit filed by the commission on Wednesday.

In legal filings, the commission said the robocall campaigns had brought in $10 million in sales as a result of the calls and mailings, which falsely gave people the impression that their car warranties were expiring.

The companies systematically dialed random numbers across the country, violating the National Do Not Call Registry, the commission said. The companies also regularly faked their own caller ID numbers, so it was unclear where the calls were coming from.

The two companies named by the commission are Voice Touch and Transcontinental Warranty, both operating largely out of Florida.

Judge John F. Grady of the United States District Court for the Northern District of Illinois issued a temporary restraining order against Voice Touch as well as a business partner, Network Foundations, prohibiting them from making further calls. He also issued a separate temporary restraining order against Transcontinental.

Also named in the restraining orders are Christopher D. Cowart, the owner of Transcontinental; James and Maureen Dunne, the owners of Voice Touch; and Damian Kohlfeld, an owner of Network Foundations.

In freezing the companies’ assets, the court also appointed receivers over Transcontinental and Network Foundations to ensure that documents were preserved and assets not dispersed. The restraining orders are in effect until a preliminary injunction hearing scheduled for May 29.
Senator Charles E. Schumer, who himself had received a robocall on his cellphone, said, “For the first time in months, millions of New Yorkers and people across the country will finally have some relief from these annoying calls with potentially thousands saved from falling into this scam.”