Unsolicited car warranty calls are a common annoyance, but they can be much more than just an inconvenience. These calls often attempt to sell you extended warranties for your vehicle, but many violate federal laws like the Do Not Call Registry and are linked to fraudulent practices. Understanding your rights and knowing how to take action is crucial in these situations.

How Car Extended Warranty Calls Violate the Law

Car extended warranty calls usually begin with a robocall informing you that your vehicle's warranty is about to expire. These calls are often misleading, pressuring consumers to act quickly to avoid costly repairs. While not all auto warranty calls are fraudulent, many violate consumer protection laws such as the Telephone Consumer Protection Act (TCPA) and the rules governing the Do Not Call Registry.

The Do Not Call Registry was created to protect consumers from unwanted sales calls. Telemarketers are legally required to stop contacting individuals who have registered their phone numbers. However, many companies ignore these regulations, continuing to place robocalls and even spoofing numbers to appear legitimate. These actions are illegal, and violators can be held accountable.

Notable Violators of Car Warranty Call Laws

There have been several high-profile cases involving companies that violated telemarketing and fraud laws with car warranty calls. One such case involved Roy Cox Jr. and Michael Aaron Jones, who were fined a staggering $300 million by the Federal Communications Commission (FCC) in 2022 for operating one of the largest illegal robocall operations in history. They placed billions of robocalls, many of which were unsolicited car extended warranty calls that targeted unsuspecting consumers.

Another example is the Sumco Panama S.A. case in 2023, where the Federal Trade Commission (FTC) pursued action against a group of telemarketers responsible for deceptive auto warranty calls. These companies violated the Do Not Call rules, misrepresented their services, and pressured consumers into buying extended warranties. The FTC ordered them to pay millions in fines and cease their operations permanently.

Legal Help from Our Law Firm

If you've received unwanted car warranty calls or suspect you've been a victim of car warranty fraud, legal action can be taken. Our law firm specializes in cases related to fraudulent telemarketing practices, including violations of the TCPA and consumer fraud.

Here's how we can help:

• File a TCPA Claim: If a company violates the Do Not Call Registry or uses illegal robocalls, you may be entitled to compensation of up to $1,500 per call.
• Pursue Fraud Claims: In cases where car warranty fraud is involved, we can help you file a lawsuit to recover financial losses from misleading or fraudulent warranties.
• Join Class Action Lawsuits: If a company has targeted a large number of consumers, you may be able to join a class action lawsuit. These suits can lead to significant settlements or judgments, as seen in past cases.

Examples of Court Decisions

In the case of Sumco Panama S.A., the court not only fined the company but also awarded financial restitution to consumers who had been defrauded. Another landmark case involved the FTC vs. Warranty Administration Services, Inc., where the company was ordered to pay $24 million in consumer refunds for misleading car extended warranty calls and violating the Do Not Call Registry.

Call Us for a Free Consultation

If you're receiving car extended warranty calls that violate the law or suspect you've been a victim of car warranty fraud, we can help you take legal action. Our firm is experienced in dealing with telemarketing violations and fraud cases, and we'll fight to ensure you get the compensation you deserve.

Contact us today for a free consultation to discuss your case. We'll review your situation and help you understand your legal options.

Sources:

1. Watch Out for Auto Warranty Scams – FCC
2. Beware of Extended Automobile Warranty Scams – DISB 
3. Car Warranty Scams: What to Watch For & How to Avoid Them – PNC
4. What to know about auto service contracts and extended warranty scams – FTC
5. FTC Action Leads to Lifetime Industry Ban for Operators of ‘Extended Vehicle Warranty’ Scam – FTC
6. Car Warranty Scams – AARP

You may also like:

• Car Warranty Scams: How to Protect Yourself from Deceptive Telemarketers
• Car Warranty Robocalls