FTC files suit to stop illegal robocalls selling vehicle warranty extensions

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PHOENIX -- Have you received a phone call telling you your car warranty is about to expire?

You shouldn't be getting those calls any longer.

It's probably one of the most annoying phone calls you get. Your phone rings and on the other end is a recording telling you about a car warranty.

Well, it looks like the government is doing something.

"It's been kind of a nightmare dealing with all this," Jacob Marin said.

Marin is talking about a car warranty he purchased when he received a phone call recently telling him that his current warranty was about to expire.

"We were concerned about the vehicle having problems later on in the future so we just wanted to be covered," Marin said.

According to Marin, Transcontinental Warranty sold him a $450 warranty for his Chevy Trailblazer under the promise he could cancel after 60 days and get a full refund.

"I thought if we go over the contract and we don't like it, we could just cancel," Marin said. "No harm, no foul."

After reading the contract, Marin didn't like it, but canceling with Transcontinental Warranty wasn't as easy as promised.

In fact, Marin's been calling the warranty company, but his calls stopped getting through.

"After the 60 days, it has been once a week since up until three weeks ago when I started getting a busy signal," he said.

That's when Marin contacted 3 On Your Side.

We did get to the bottom of things and found out why Marin may be getting the busy signal. Apparently, the company was shut down by the government.

According to documents obtained by 3 On Your Side, the Federal Trade Commission accuses Transcontinental Warranty of "ignoring the National Do Not Call Registry," "making false and misleading statements" and that they "employ a number of tactics designed to mislead consumers."

In a statement to 3 On Your Side, the feds say they are "seeking restitution for consumers who were injured as a result of the deceptive practices."

That's good news for Marin, who is glad the government is finally cracking down.

"It just hits close to home," he said. "You never think it's going to happen to you until this happens."

After the FTC case was filed, a judge put an order to stop the company from making illegal robocalls selling deceptive warranties.

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