Feds to File Lawsuits Against Car Warranty Companies Behind Robo-Calls

The voice is automated and the pitch is simple: Your car warranty is about to expire and you need to sign up for a new service plan.

More and more people are getting the call, regardless of whether they have warranties or even own cars.

Now, federal regulators and lawmakers are about to pull the plug.

At a news conference Tuesday, Sens. Charles Schumer and Mark Warner announced that the Federal Trade Commission is close to filing lawsuits against companies believed to be behind this national wave of spam "robocalls."

"This prompt investigation by the FTC should provide some relief to Americans besieged by these fraudulent calls," said Schumer, D-N.Y., who has been calling for a federal investigation into what he calls "robo-dialer harassment."

The FTC has inquiries under way into several companies involved in the deceptive calls and also is providing an electronic link on its homepage for consumers to file complaints.

"It's a clear signal that the new FTC is on the side of the consumer and hot on the trail of the scammers," he said.

Schumer, who claims the message "Your Car Warranty Has Expired" already has brought some 300,000 complaints nationwide, said the calls are jacking up cell phone minutes and could be even more costly for those caught up in the scam.

Warner said the FTC has estimated that consumer telemarketing fraud rakes in $40 billion a year.

"This is the type of fraud that we can put an end to," said Warner, D-Va.

Auto Warranty Solicitations Stall Phone Lines Nationwide

The FTC was not immediately available for comment.

The companies offer contracts akin to insurance policies, pledging to pay for car repairs in exchange for feeds paid up front. Some companies also send out cards that mislead recipients into thinking that their vehicles have been subject to safety recalls, according to the Better Business Bureau, which said that last year it received more than 140,000 complaints about the calls, which come even if a person has signed up for the national Do Not Call registry.

"We have heard people say that they were led to believe their manufacturer was telling them their warranty was about to expire," Better Business Bureau spokeswoman Alison Southwick told FOX News. "What they are selling is an extended service contract."

"Not only have we heard complaints people who say that they were deceptive, but we have also heard from people who bought it and said that it was not worth their money," she added.

Officials in 40 states are investigating the companies behind them.