U.S. Fidelis Files for Bankruptcy

Several months ago I wrote an article in the Cenla Focus about the automobile warranty companies that advertise on television on on satellite radio. Essentially, the article warned customers about these aftermarket companies that are not supported by the local franchised dealer network. Many of the companies had failing Better Business Bureau grades and others were being investigated by certain state's attorneys general.


Well, the shoe has dropped on at least one of the companies that I warned against. U.S. Fidelis, based in St. Louis, filed for bankruptcy protection in March citing more than $25 million in debt. The company is supposed to be issuing refunds to customers for cancelled contracts and claims that all warranty obligations are insured. In news articles published in Automotive News in March, reports show that the two brothers who owned U.S. Fidelis borrowed more than $49 million from the company to spend on themselves and their families.

When shopping for a vehicle or related products remember to shop locally and with people you know.