Sen. Schumer wants investigation into "robo-dialer harassment"

NEW YORK — Unsolicited calls to home and cellphones warning of a final notice and an expiring vehicle warranty are a nuisance and harassment and should be the subject of a federal investigation, a U.S. senator said Sunday.

Americans increasingly are receiving calls with a computerized voice saying, "This is the final notice. The factory warranty on your vehicle is about to expire," or something similar, several times a day on their cell or landlines. The calls come even if a person has signed up for the national "do not call" registry.

Now, Sen. Charles Schumer of New York wants a federal investigation into the "robo-dialer harassment."

"Not only are these calls a nuisance, but they tie up landlines and can eat up a user's cellphone minutes, possibly leading to a higher cellphone bill due to overage charges," said the Democrat.

Meanwhile, officials in 40 states are investigating the companies behind the car-warranty calls.

Michelle Corey, president and CEO of the Better Business Bureau in St. Louis, Mo., said the industry is based largely in the St. Louis area and generates thousands of complaints a year.

She said a group of companies began operating in Missouri in the mid-1990s that offered extended repair warranties to people whose manufacturer-issued warranties were about to expire. Within a few years, about 35 firms were offering similar services.

The companies offer contracts akin to insurance policies, pledging to pay for car repairs in exchange for fees paid upfront.

The companies call numbers randomly and leave messages telling people that their auto warranties are about to expire — whether they even own a car.

Some companies also send out cards that mislead recipients into thinking their vehicle has been subject to a safety recall, Corey said.

If people call back and agree to buy a policy, Corey said, the companies often don't let them see the contract until they agree to pay.

Some scam victims don't learn until it is too late that the deals don't cover many types of repairs, Corey said.

Missouri authorities filed a lawsuit last month against one of the largest car-warranty companies, Wentzville, Mo.-based USfidelis, charging that company officials ignored a subpoena demanding that they answer questions about their business.

Corey said it is often difficult to know who is making the calls, because companies change names frequently and use telemarketing subcontractors.