Common Law - The FindLaw Consumer Protection Law Blog

Auto Warranty Robocall Scam Class Action

In Illinois man has filed a class action suit against two companies at the center of the auto warrranty robo-calling harassment which has drawn attention from federal and state governments. While a recent Federal Trade Commission (FTC) suit involved the millions of people robo-called despite being on the Do Not Call Registry, this suit involves what actually happens if you buy one of the warranty policies. Spoiler alert: the policies in addition to the sales tactics appear to have some problems.

At this point, one might be hard pressed to find someone who has not received one of there automated calls pretending to be affiliated with their car dealership, and warning that warranty coverage is about to expire. These folks have gotten in deep dutch for showing incredible disregard for the national Do Not Call Registry, as well as inappropriately calling people's mobile phones.

According to the suit filed by Jonathan J. Sahim on behalf of himself and others similarly situated, at least with Dealers Warranty LLC (a.k.a. Federal Auto Protection) and Warranty Finance LLC, the problems don't end with shady telemarketing practices.

He claims that he purchased a policy from Dealers Warranty in 2007, with flat monthly payments to last 60 months. On cancelling his policy, he was charged hundreds of dollars in "interest" and "marketing" fees that he claims were undisclosed. These fees totaled 25% of the value of the policy.

So, in addition to protecting yourself from the car warranty robo-calls, also remember to protect yourself from the potentially misleading policies they are actually selling.