Kroger sues auto warranty dealer

Keith Loria May 27, 2010, 3:49pm


SALEM, Ore. (Legal Newsline) - Oregon Attorney General John Kroger announced on Thursday that he has brought a lawsuit against a Missouri-based auto warranty company for allegedly misleading consumers in Oregon.

Charges against U.S. Fidelis, which also does business as National Auto Warranty Services, allege that the company illegally misled consumers about extended vehicle protection and service plans.

"This company misled Oregon consumers by selling deceptive vehicle warranty plans," Kroger said. "When the plans arrived in the mail and consumers made claims, they discovered that the fine print left them with almost no coverage at all."

The company sells extended vehicle protection plans that are advertised as beginning when original warranties expire. Kroger's suit alleges that Oregon consumers were misled by the company into believing that the plan would cover most, if not all, repairs, when, in fact, there were so many exceptions written into the warranties that they were basically worthless when a car broke down.

The lawsuit further alleges that U.S. Fidelis misrepresented the level of coverage consumers would receive and threatened that they would lose special benefits if they didn't buy right away.

When consumers asked to see the actual conditions of the contract, the suit alleges, they were ignored.

U.S. Fidelis is also accused of violating the Do Not Call registry, with more than 1,400 complaints placed with The Better Business Bureau.

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