Oklahoma Sues Car Warranty Telemarketer

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September 6, 2009

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Car warranty telemarketers are apparently at it again. In the wake of a federal crackdown on these warranty schemes, Oklahoma Attorney General Drew Edmondson is asking an Oklahoma court to stop a Florida telemarketer from offering potentially bogus products to consumers and from violating Oklahoma telemarketing laws.

Edmondson accuses C1F Marketing of employing unfair and deceptive trade practices in the marketing of vehicle warranties and of violating numerous state telemarketing laws.

The attorney general alleges C1F is calling Oklahoma consumers warning that their automobile warranty is about to expire.

"We allege the company misrepresents information when they contact consumers," Edmondson said. "The company tells consumers that their vehicle warranty is about to expire whether it's true or not. They even try this ploy with consumers who don't have a vehicle warranty. We also believe the warranty the company is selling doesn't deliver as promised."

The Clearwater, Fla., company is also accused of violating the state's Do Not Call and automatic dial laws and of operating in the state without registering as a commercial telephone seller as required by statute.

"We allege C1F's solicitations are knowingly false and misleading and that the company is illegally using an autodial device to contact Oklahomans who are registered on our Don't Call list," Edmondson said. "We also allege the company is not registered to make telemarketing calls in Oklahoma."

The suit asks the court to permanently enjoin the company from conducting these illegal operations in Oklahoma and seeks civil penalties, costs and expenses. Edmondson also today filed an application for a temporary injunction to stop the allegedly illicit activity pending the outcome of the lawsuit.

Earlier this month the Federal Trade Commission proposed a settlement with Transcontinental Warranty, Inc., stopping it from using robo callers to make warranty pitches to consumers. Under the settlement, the company its owner will be permanently banned from making any prerecorded calls like the ones it used previously to trick consumers into buying vehicle service contracts under the guise that they were extensions of original vehicle warranties.

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