The Oregon attorney general is suing bankrupt Missouri-based auto warranty company U.S. Fidelis, already in hot water in nine other states who say its sales tactics were deceptive and aggressive.
Also known as National Auto Warranty Services, U.S. Fidelis claimed to provide extended auto warranty coverage once an original dealer's warranty expires. But consumers who complained say they were led to believe almost all their repairs would be covered by a newly purchased warranty. The case in Oregon alleges U.S. Fidelis' warranties were misleading and left buyers with almost no coverage when they attempted to make claims.
The case also alleges that the company used high-pressure sales tactics and violated the Do Not Call registry. The company filed for bankruptcy protection March 1.
In April of 2009, the Better Business Bureau reported more than 1,200 complaints against the company and 33,000 inquiries over the previous three years, coming from all 50 states. The Missouri BBB urged consumers to seek refunds and settlements after the company's bankruptcy.
The company's website lists details about its bankruptcy, how it will continue to process claims, and a toll-free customer service number, as well as a peace of mind pledge.
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