FTC Cracking Down On Car Warranty Robocall Scammers

from the about-time dept

Fri, May 15th 2009 1:26pm — Mike Masnick

It was just last week that we questioned why the FTC hadn't been able to track down the scammers behind the "this is the 2nd notice that the warranty on your car is about to expire" robocalls. Apparently, we were just a little anxious. On Thursday, the FTC filed complaints against two of the companies involved in the scam, noting that they were apparently placing 1.8 million calls per day, with no regard for the Do Not Call List. Apparently, the scam has already brought in $10 million from people who were duped, though the FTC is trying to get all that money back.

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Filed Under: car warranty, ftc, robocalls, scams

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lavi d (profile), 15 May 2009 @ 1:35pm

Fed Up
A couple of weeks ago, I got tired of these people calling my work number and then my cell phone. I was especially irked that they were spoofing the caller ID.

I decided to try and find something out about them. The next time they called, I insisted on having their number. The woman I was talking to told me she would take my number off their list and hung up.

The next time they called, I went along. I gave over my car make/model/year and home address. I got to some woman who told me that they would provide me coverage, all I had to do was give them a CC number. I then told them that I wanted to be billed and I wanted a copy of the coverage along with the invoice. They hung up.

They called twice more, and both times I asked to be removed from their list.

I haven't heard from since the week before the Reddit guy busted them.
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al, 15 May 2009 @ 2:30pm

same group has shifted to "lower cc interest rates" even more dangerous as they want cc info .... scum bags!!!
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scott, 15 May 2009 @ 3:00pm

ABOUT FUCKING TIME, FCC!!!
These pricks have called my home at least 30 times in the last year. Assholes.
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scott, 15 May 2009 @ 3:04pm

should have been "FTC" in my prev post...
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Grae (profile), 15 May 2009 @ 3:17pm

Re: Fed Up
She hung up because she would have been fired if she told you anything. See the article on Ars Technica: toward the bottom is a blurb from the Training Manual of just one of the Telemarketing firms involved.

http://arstechnica.com/tech-policy/news/2009/05/ftc-nukes-extended-warranty-robocallers -from-orbit.ars
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Harry, 15 May 2009 @ 3:20pm

If this was "one of the most aggressive" of all time, what took them so long to put a stop to it? I've been getting these calls for at least 6 months.
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OldGeek, 15 May 2009 @ 3:21pm

Lucky
30 times in the last year??? We get about 30 calls a week!!! Then again in the last year we had to purchased two cars (the old ones just didn't make it).
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Mapes, 15 May 2009 @ 3:23pm

Was being pestered all the time by these aholes. Finally pressed one to be sent to a rep. The guy does his spiel and I ask why are you committing a crime calling this number that is on the DNR. The guy responds by a Brooklyn Hello. For some reason I just found it hilarious...
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Anonymous Coward, 15 May 2009 @ 3:45pm

Re: Lucky
Then again in the last year we had to purchased two cars (the old ones just didn't make it).

See, you should have bought the extended warranty!
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joe, 15 May 2009 @ 4:06pm

Case is solved...here's who's doing it.. (yes, really!)
They caught the B@#$%%!!!

http://dockets.justia.com/docket/court-ilndce ... case_id-231495/

Did some research

Here's their (Network Foundations) number, (312) 235-2400 call them...use *67 if you want to block your number from them--I'm going to call them several times a day!

...here's the other owner's Name and address
Don't have a phone number for them ...Yet... maybe just drop by if in the area...

Voice Touch , Owners
James A and Maureen Dunne
22 Promenade At Lionspaw
Daytona Beach, FL 32124-1500
Voice Touch , Owner
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joe, 15 May 2009 @ 4:09pm

corrected docket link
Sorry, here's the docket link:

http://dockets.justia.com/docket/court-ilndce ... case_id-231495/
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joe, 15 May 2009 @ 4:13pm

won't let me put the link
use the above and type 'network foundations' as the party...click on info.
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Thomas, 15 May 2009 @ 5:12pm

surprised
Maybe they forgot to send the monthly bribe money to the FCC and now they're getting payback.
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Hahahahaha..., 15 May 2009 @ 5:16pm

Hahahahahahaaaaaa
"the scam has already brought in $10 million from people who were duped"

At what point did those dumb people get convinced to give an automated voice all their information without any identification of who it was working for? Before they checked their warranty information, after they checked it, or after they received their second notice for the Nth time? I agree, the scammers should be legally forced to give up all the money, but the victims don't deserve any of it back. Clearly it would make more sense to go to education funding so this doesn't happen to their offspring.

And someone else mentioned they think they got 30 calls a week cuz of the 2 new cars, nope, you got 30 calls a week cuz you're plain unlucky like me. I got a bare minimum of 2 calls per day since November, and I do NOT own a car, nor have I ever purchased a car. Also, nobody in my immediate family and nobody at my living address have purchased a new car in over 10 years. There was absolutely 0 possible reasonable or unreasonable methods to which they could decide spamming me to scam me over a car warranty made sense.

You and I are just unlucky people who got to be annoyed more.
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Anonymous Coward, 15 May 2009 @ 7:01pm

Re: Hahahahahahaaaaaa
What an asshole
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The Cenobyte, 15 May 2009 @ 10:37pm

forget the money
They need to go to jail. Anyone in charge needs to go to jail. Most of the people working the phones need to go to jail cause I have done some legal telemarketing in my day and everyone knows what the 'scam' is. (It was the 90s, laws where loose on who we could call and we did deliver the product we sold them, just didn't cost us much to make) Getting the money back to people would be nice, but first let’s start putting them in jail. Once a few dozen of them are in jail the next guys will think twice, and these boiler room call centers will be much harder to staff.

And umm where the frak was the FCC/FBI. I mean how many months does this go on before they start worring about enforcing the law? $10 million before they really do anything. They are using the public phone network it couldn't be that hard to find them.
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Anonymous Coward, 16 May 2009 @ 7:35am

Send them to jail
Yep, that's the answer to everything

What's that you say ?
The jails are full and we need to increase taxes ? - No way !

Headlines: Convicts released early due to overcrowding
Most of them were non-violent when the were sent to jail, but who knows now ...
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John (profile), 17 May 2009 @ 1:03pm

The bigger issue...
... is how and why these companies continue to operate. Obviously someone somewhere thinks it's more profitable to robo-call millions of people it is to just not do it. And what happens when they call? Do they get a fine? How much? Is a $10 million fine pocket-change and a "cost of doing business" compared to the millions they'll get from people who paid for the "warranty"?

If you're on the Do Not Call list *and* the calling company is hiding their number, what action can you take? Even if you report them to the FTC, will anything really happen? Supposedly, this company had been calling people for months. Did no one complain to the FTC? Did it take the FTC this long to finally figure catch up to them?
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Xanthir, FCD, 18 May 2009 @ 10:50am

Re: The bigger issue...
Supposedly, this company had been calling people for months. Did no one complain to the FTC? Did it take the FTC this long to finally figure catch up to them?

Apparently, yes. The companies went out of their way to hide themselves, setting up offshore shell companies and such. It seems it really did take the FTC a while to gather sufficient witnesses and evidence to take them to trial and be sure of hitting them.
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madhamster, 2 Jun 2009 @ 4:33pm

robo call
i would love to post the phone #s of the principals of this warranty is about to expire co James and Maureen Dunne on line for every one to call and harass now would that not be poetic Justis
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