Oregon Department of Justice

Attorney General Ellen F. Rosenblum

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ATTORNEY GENERAL JOHN KROGER SUES MISSOURI COMPANY OVER EXTENDED VEHICLE PROTECTION PLAN THAT FAILS TO DELIVER

May 27, 2010

U.S. Fidelis, also known as National Auto Warranty Services, is accused of illegally misleading consumers about extended vehicle protection plans.

Oregon Attorney General John Kroger today announced a lawsuit that accuses the Missouri-based U.S. Fidelis of illegally misleading consumers about extended vehicle service plans.

"This company misled Oregon consumers by selling deceptive vehicle warranty plans," said Attorney General Kroger. "When the plans arrived in the mail and consumers made claims, they discovered that the fine print left them with almost no coverage at all."

U.S. Fidelis, also known as National Auto Warranty Services, sells "extended vehicle protection plans" for consumers that are supposed to pick up when original warranties expire. The lawsuit alleges that Oregon consumers who paid for the extra coverage were misled into believing that the plan would cover most if not all repairs – just like a dealer-provided warranty. But according to the lawsuit, the U.S. Fidelis extended protection plans included so many exceptions that consumers were usually left out in the cold when their cars broke down.

The lawsuit also alleges that U.S. Fidelis misrepresented the level of coverage consumers would receive and pressured them into signing up quickly or risk losing special benefits. Some consumers were told that they were eligible to receive special rates that never materialized. Consumers who asked to see the actual conditions of the contract were ignored.

U.S. Fidelis is also accused of violating the Do Not Call registry.

The Better Business Bureau has received more than 1,400 complaints about U.S. Fidelis and its affiliates.

Assistant Attorney General Simon Whang is handling the case for the Oregon Department of Justice.

Attorney General John Kroger leads the Oregon Department of Justice. The Department's mission is to fight crime and fraud, protect the environment, improve child welfare, promote a positive business climate, and defend the rights of all Oregonians.

Contact:

Tony Green, (503) 378-6002 tony.green@doj.state.or.us |
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