For Immediate Release
Media Contact: Bob Cooper
Date: April 30, 2010
Attorney General Sues Two Auto Service Contract Sellers
(Boise) - Attorney General Lawrence Wasden filed lawsuits against two vehicle service contract sellers. The lawsuits target U.S. Fidelis and Credexx, which used direct-mail postcards and robodialers to market the contracts for third-party administrators.
“These companies advertised their contracts as providing ‘bumper-to-bumper’ coverage,” Attorney General Lawrence Wasden said. “Relying on these representations, consumers spent hundreds of dollars for contracts that excluded practically everything between the front and rear bumpers.”
U.S. Fidelis, Inc., formerly known as National Auto Warranty Services, Inc. and doing business as Dealer Services, is located in Wentzville, Missouri. Idaho’s lawsuit alleges that U.S. Fidelis misrepresented to consumers the coverage of the service contracts and misled consumers into believing the contracts were extensions of manufacturers’ warranties. The complaint also alleges violations of Idaho’s telephone solicitation statutes and rules. The lawsuit names, as defendants, the corporation and its principals, Darain and Cory Atkinson. U.S. Fidelis filed for Chapter 11 bankruptcy in the Eastern District of Missouri on March 1, 2010.
Credexx, Inc. is located in Irvine, California, and operates as Auto One Warranty Specialists. Similar to the U.S. Fidelis complaint, the Credexx complaint alleges that the company sent direct-mail ads to Idahoans, falsely claiming that consumers’ auto warranties had expired or were about to expire. Credexx described their service contracts as providing “bumper-to-bumper” coverage, yet the contracts contained many exclusions. Credexx admitted it telemarketed in Idaho without having registered with the Attorney General. Credexx shut its doors in March and is no longer selling service contracts. The lawsuit names, as defendants, Credexx and its principal, David J. Tabb.
Both lawsuits seek injunctive relief, restitution for injured consumers, civil penalties, and reimbursement of the Attorney General’s fees and costs. Due to U.S. Fidelis’s bankruptcy and Credexx’s closure, however, it is unlikely that either company will have sufficient assets to pay a judgment at the conclusion of the case.
Consumers with questions about their contracts or the status of their refunds should contact their contract administrator. The administrator’s contact information is listed on the service contract. The Attorney General’s Office does not have access to this information.
Attorney General Wasden encourages Idaho consumers who have lost money due to the business practices of U.S. Fidelis or Credexx to file a complaint with his Consumer Protection Division. Click here to file a complaint form from our website, or you may call our office at (208) 334–2424. Idahoans outside the Boise calling area may call the toll–free number, (800) 432–3545.
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