What does this $15 million mansion have to do with it?
One of the largest used car warranty sales companies, U.S. Fidelis Inc., is being sued by the attorney generals of multiple states.
U. S. Fidelis sold used car warranties.
Fidelis, Latin for faithful, is also in the Marine Corp motto Semper Fi, meaning always faithful.
Well, this company was faithfully combining some well-regarded business notions: used cars, selling extended services warranties, and telemarketing.
"U.S. Fidelis allegedly used deceptive, misleading or false information to convince thousands of Pennsylvania consumers to spend thousands of dollars on used car warranties that may not have provided the protection they were seeking," Attorney General Tom Corbett said. "The company is also accused of disregarding ‘Do Not Call’ programs and other restrictions on telemarketing, flooding homes and cell phones across the country with an estimated one billion unwanted sales calls."
Did you get that last line? One billion unwanted telemarketing calls.
They said their warranties would be the same as the original car warranties. They weren’t.
They said their coverage was extensive. It wasn’t.
They said this was your "last chance offer." They lied.
You told them not to call because you were on the "Do Not Call" list. They kept calling.
If you bought a contract, you may also have discovered that it wasn’t even from U. S. Fidelis. They were actually re-selling warranty coverage from other companies. Call that other company if you have a problem.
Would it surprise you that the company is now bankrupt?
And that mansion pictured above?
Company co-owner Darain Atkinson used money from U. S. Fidelis to build a $15 million mansion in Lake St. Louis.
Some news from Pottstown Herald>>
Search Matthew Hathaway’s The Savvy Consumer columns at STL Today. He loves these guys>>