May 13, 2009

"Robo-Calls" Automate Annoyance

Unsolicited Recorded Calls Spark Outrage With Lawmakers

  • Play CBS Video Video Rise Of "Robo Calls"

    Susan Koeppen spoke with Maggie Rodriguez about a new wave of "Robo Calls," automated calls from telemarketers and how you can determine which companies to trust.

  • Automated unsolicited calls are sparking outrage among lawmakers who are set to file lawsuits against companies behind a national wave of calls warning people that their auto warranties are about to expire and offer new service plans.

    Automated unsolicited calls are sparking outrage among lawmakers who are set to file lawsuits against companies behind a national wave of calls warning people that their auto warranties are about to expire and offer new service plans.  (CBS/AP)

(CBS/AP)  Telemarketers are almost always annoying, and even more so when the caller has an automated voice.

And a new rash of these spam "robo-calls" has lawmakers and regulators ready to take action. Sens. Charles Schumer (D, N.Y.) and Mark Warner (D,Va.) said at a news conference Tuesday that they’re set to file lawsuits against the companies behind a national wave of calls falsely warning people that their automobile warranties are about to expire and offering new service plans.

Early Show consumer correspondent Susan Koeppen armed consumers Wednesday with ways to combat being duped by the calls.

"If you receive an unsolicited phone call asking you to extend your car warranty, be very careful before you buy anything," she said. "If it’s an unsolicited phone call, be very careful that you trust this company you’re dealing with."

Koeppen told Early Show co-anchor Maggie Rodriguez it’s also a good idea to ask a lot of questions.

However, getting the calls to stop is another matter altogether.

The calls come even if the consumer has signed up for the national "Do Not Call" registry, which is maintained by the Federal Trade Commission.

But the FTC is encouraging consumers to take an additional step: File complaints.

The message "Your Car Warranty Has Expired," offering a deal on an extended warranty, already has brought some 300,000 inquiries and 4,000 complaints to the Better Business Bureau from consumers who received the calls over the past two years.

And though the recording typically gives the caller an option to stop receiving calls, they continue to come even if consumers opt out, the officials say.

As for the products themselves, if people call back and agree to buy policies, the companies often don't let them see the contracts until they agree to pay, the Better Business Bureau says. And some people don't learn until they've spent thousands of dollars that the deals don't cover many types of repairs.

Some believe issues in the car industry are making people more susceptible to these telemarketing claims.

"Companies like Chrysler are declaring bankruptcy," said Alison Southwick of the Better Business Bureau, "so there's a lot confusion surrounding the status of your car warranty."

But the calls target people regardless of whether they have warranties or even own cars, and have become such a nuisance that officials in 40 states are investigating the companies behind them.

The FTC has started investigations into several companies involved in the deceptive calls, the senators said, and the agency expects to bring cases against them within days.

"Law enforcement action in this area can be expected imminently," FTC Chairman Jon Leibowitz said Monday in a letter to Schumer.

About three dozen companies offer contracts similar to insurance policies, pledging to pay for car repairs in exchange for fees paid up front, according to the Better Business Bureau. They call numbers randomly and leave messages with a computerized voice telling people that their auto warranties are about to run out.

"It's about time these robo-calls were terminated," Schumer said. "This prompt, aggressive action by the FTC should provide a bit of relief to the Americans besieged by these fraudulent calls."

Leibowitz noted in his letter to Schumer that such "robo-call" or "voice-blasting" phone campaigns may violate a number of telemarketing sales and other FTC rules.

Indiana's attorney general, Greg Zoeller, last week sued two companies, Fortress Secured and SVM Inc., for alleged violations of state laws governing telephone privacy, including "Do Not Call."

The suits accuse the companies of using illegal auto-dialed messages to contact phone numbers on the state's restricted list.

Zoeller's office said it has received more than 100 complaints about "robo-calls" from telemarketers selling auto warranties or service contracts.

Spokesmen for Fortress Secured and SVM couldn't immediately be reached for comment on Tuesday.

© MMIX, CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.
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Add a Comment See all 17 Comments
by geena5 May 14, 2009 2:54 AM EDT
I love caller id, and I actually like robo calls better than telemarketer workers, I don't feel bad when hanging up on a machine, and I feel sorry for telemarketers because I tried to be one for a few days and hated it, so I feel for them and just let the caller id screen those calls for me to avoid. even though we are on the Do Not Call list, a lot of soliciters get through, but not as bad as it used to be.
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by caldwellptr May 14, 2009 12:32 AM EDT
I believe robo calls are really an Eastern European crime syndicate practicing crashing the system or phishing, or Al Queda trying to reduce American productivity.
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by madam_queen May 13, 2009 11:32 PM EDT
I'm tired of government promises that are never fulfilled. Our government is just as bad as they are. They take your $ with promises of makeing things better & instead things get worse. More home foreclosures, higher unemployment & a $1.8 trillion deficit that is still climbing. They can't blame this on the Bush administration.

madam_queen54
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by deadeyerightside May 13, 2009 6:30 PM EDT
Did I hear Maggie wrong? I thought she said she was going to tell us a way to stop the calls forever. Does anyone care about the banks robo calls promising to lower your interest? They also call and annoy on a regular basis promising that this is their last call. The other day I acted interested and tried to find out their phone number since I refuse to pay for caller id, they rudly hung up on me.
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by 1notrub11 May 13, 2009 3:36 PM EDT
Some people dont know this but GOOGLE the nubmer you got off the Caller ID and its amazing what info you can find on a toll free number if you Google It ! Oregon_State_OSU at 10:55 AM : May 13, 2009

This is absolutely correct. I recently purchased an item, was alerted I would be called, but when called did not recognize the number. Wrote it down and googled it. Behold, the number was identified and I was comfortable calling back to respond to the survey. I have done this with other numbers, mostly with success. Highly recommended.
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by omega39-2009 May 13, 2009 2:36 PM EDT
It's too bad they don't list the home/business/cell phone numbers of the jerks these lines using robo-callers are registered to so that we could all return the favor.
Posted by omega39-2009


One more time in English

It is too bad they don?t print the personal phone numbers of the idiots behind these calls so that we could return the favor.
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by omega39-2009 May 13, 2009 2:27 PM EDT
It's too bad they don't list the home/business/cell phone numbers of the jerks these lines using robo-callers are registered to so that we could all return the favor.
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by Oregon_State_OSU May 13, 2009 1:55 PM EDT
I work for a Large Phone Company in the Mid West.

The first thing you should do when you get a call like this is look at your caller ID and write down the number. If there is no number on the Caller ID thats a huge red flag. Always ask questions & never agree to anything in a rush or hurry, dont fall for it.

Some people dont know this but GOOGLE the nubmer you got off the Caller ID and its amazing what info you can find on a toll free number if you Google It !

Like some Bill collectors they purchase an old bill you owe for pennies on the dollar and call you and call you and call you. They can do NOTHING to you because the company has written you off as a bad debt. There is a company like this in Tennessee & I know this because I get complaints from customers who are on our network about them constantaly calling.
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by winchester70 May 13, 2009 12:33 PM EDT
When I get one of those calls, I don't hang , I just put the phone down until it beeps. I wish I could do a credible Fred Sanford "This is the big one" impression and scare hell out of these cretins,
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by YCantWeAllGetAlong May 13, 2009 11:46 AM EDT
I solve the problem easily. I do not answer these calls, ever. If they come to my home phone or cell and I do not know the number, I do not answer. I note the number, date and time and report them if the message left is spam. One time only I answered and asked them if they sold their soul to get the job because no amount of money would make me work for these people. There are always going to be people like this and unfortunately, we have the lovely government working hard on it for us. [sarcasm] I'm sure they will work very hard to make sure this problem is taken care of quickly. It's what they live for; serving the American people [/end sarcasm]
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