Friday, November 12, 2010

US Fidelis and Attorneys Generals Reach Settlememt

I'm following this story mainly out of my intense loathing for US Fidelis.

Pennsylvania Attorney General Tom Corbett has announced that he and 10 other states AG's have reached a settlement with US Fidelis. The St. Louis-based vehicle service contract provider was forced into bankruptcy in April after being charged with deceptive and misleading business practices.

Nils Frederickson, spokesman for the Pennsylvania Office of Attorney General, said that the case and the settlement represent a solid victory for car buyers and a cautionary tale for unscrupulous marketers.

“This case should serve as clear warning: There are lines you can’t cross,” Frederikson states, "The rules that are in play, if you look at it from our perspective, are to benefit everyone.”

At the heart of Corbett’s investigation were claims that US Fidelis repeatedly and systematically ignored federal Do-Not-Call rules, among other violations. (I personally added my cell phone number to their database as a "hot lead" in early 2008 - I got called at least six times)

The company had been under investigation since 2008, a year in which US Fidelis employed more than 1,000 workers and generated $246.5 million in revenue. .

There soon followed a flood of reports from customers to the Better Business Bureau, each accusing US Fidelis of either pressuring or misleading them into purchasing a service contract or failing to pay claims. The company became the subject of more than 33,000 inquiries and 1,100 complaints from all 50 states in a 36-month period.

Read the rest of the article HERE:

The terms of the bankruptcy settlement will require the company’s owners, brothers Darain and Cory Atkinson, to surrender at least 90 percent of their assets. That includes a stake in 20 related corporations and $10.5 million dollars’ worth of personal property, including Darain Atkinson’s 40,000-square-foot Missouri mansion, a 50-foot yacht, and 35 other boats, cars and motorcycles.

Check out: "The bidding starts at 4.75 million for Atkinson mansion":

Serves 'em right!

Next Post: Toyota Dealer Bans the F&I Office ???


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