Truth in Advertising – be Aware of Another Scam
You may have been exposed to this ad on television lately – a 6-year-old company touting itself as “America’s leading provider of extended auto warranties” . We have seen it many times on satellite TV. Since we have a 2004 Dodge pick-up without an extended warranty, my husband decided to check out this company.
At first it sounded legitimate and promising, but as the conversation went on it became apparent that something wasn’t quite right. They were offering 18-month financing and full coverage for around $3,000.00 for a five-year warranty. When we told them we wanted to check out their company before making any commitments, they began offering incentives to “buy now” that would not be offered later such as free commercial coverage, no processing fees, etc. Thankfully we have the Internet these days, so I decided to look them up on the Better Business Bureau while my husband had the company on the phone. Here’s what I found out…
The company, U.S. Fidelis, is facing a “storm” of criticism from consumers across the U.S. who say they have been misled and pressured into buying these auto warranties, according to the St. Louis Better Business Bureau. The BBB has received more than 33,000 inquires and more than 1,100 complaints in the last 36 months about this company. Just in case you have been involved in the auto warranty scams, they have also been known as Dealer Services and National Auto Warranty Services.
The company was founded in 2003 and sells extended warranties throughout much of North America. The BBB has received complaints from all 50 states, the largest amount from Texas. A lawsuit was filed in March 2008 by the Missouri attorney general’s office against U.S. Fidelis and six other auto warranty companies. In spite of the lawsuit, the exploitation of the public by this company continues…
After this enlightening experience, I decided to go straight to the most reliable source I have found for my auto warranties, Chrysler. I have never had a problem with their service – or their honesty. I know I will not only get a good product, but I will be helping the struggling auto industry as well.
If you want to check out the information from the Better Business Bureau firsthand, and see the advice they offer for dealing with a firm selling auto warranty contracts, here’s the link http://stlouis.bbb.org/article/9949. This is just one more example of how easy it is to be misled by companies that “look” legitimate. If you’re considering purchasing products or services from a new company, make sure you do your due diligence and check them out thoroughly.
