"Robo-Calls" Automate Annoyance

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.