FreeAutoWarranty Information

Questions? 888-729-2314

Year:
Make:
Model:
Mileage:

Tag Archives: us fidelis

10
Aug 2011

US Fidelis to Pay $25M Penalty

posted by Auto Protection Specialist

Maryland AG (Douglas Gansler) announced today that US Fidelis was ordered to return almost $25M to its past customers and pay almost $1.7M in civil penalties. The decision comes on the heels of an inquiry by the state of Maryland into deceptive marketing practices of US Fidelis.

The inquiry states that US Fidelis was misleading consumers by claiming that it could extend original manufacturers’ warranties when, in reality, it had no direct relationships with the manufacturers. This finding is very much in line with a common confusion in the auto protection marketplace about “extended auto warranties” vs “auto protection plans” (learn how to avoid “warranty” word confusion). Unfortunately, this confusion has been abused by some companies, which resulted in misaligned expectations between customes and protection providers.

US Fidelis filed for bankruptcy in March 2010.

Learn to avoid “auto warranty scams” and recognize how to identify real compehensive auto repair protection plans from murky vendors.

Read more