If the dealer is in Illinois, take a look at the consumer fraud statutes.
It is unlikely that the Illinois Department of Insurance will find that they have any jurisdiction, unless they somehow find that the "warranty" is really an insurance policy within the meaniung of the Illinois Insurance Code (Chapter 215, Illinois Compiled Statutes )--but give them a shot anyway! The way most of these so-called "warranties" are written by third parties, they seem to meet most of the definitions of insurance, and damned few definitions of a "warranty". If the Department of Insurance does say that this falls under their area, please post that fact here--there are a lot of people in similar boats.
Re lawyers--don't believe everything you read in the media. If you have your facts straight and have a proveable case worth investing the time, you may find a competent attorney willing to take the case on a contingency basis. If as suggested in another post you don't turn out to have a good case legally, but are trying a shakedown with the threat of adverse publicity, you will deserve the lawyer you get--a sleaze, after being politely shown out of the office of any reputable lawyers you've seen.
Good luck.