Cleaning Up the Auto Warranty Business

Extended Auto Warranty Companies Involved in Lawsuits

In order to fully understand the warranty industry, it's important to get an idea of what's been happening the past few years. It's important to note that when a company operates illegally, Attorney General Offices do take action. These examples will show you how the industry is being cleaned up and things to avoid.

2010
At the beginning of this year, January 2010, Dealer Warranty Services and its owners settled with Oregon Department of Justice's consumer protection efforts. They agreed to make a payment of up to $20,000; they were accused of falsely advertising the sale of motor vehicle service contracts.

2009
Many companies that sell extended auto-service contracts are located in the St. Louis, Missouri area. In November, 2009, the Missouri Attorney General, Chris Koster, filed suit against six companies, all located in suburban St. Louis.

The companies named in the suit are:

Company Name	BBB Grade
National Dealers Warranty aka StopRepairBills.com	F
Warranty Activation Headquarters aka Nationwide Automotive Protection	F
Extended Warranty Corporation aka Key Protection Group	N/A
Dealers Warranty aka Mogi	F
U.S. Auto Warranty	F
Deal Warranty Services	F

* — Data retrieved from Better Business Bureau reports as of 8/1/2010.

Each of these businesses was charged with unfair and deceptive practices violations and some were charged with violating the no-call law. They were charged with using misleading letters, postcards and telemarketing techniques, failure to inform customers that they were not affiliated with automakers or dealers as their marketing materials suggested and finally with trying to obtain bank account or credit information through misrepresentation. You should never deal with a company that breaks the law. If they can't follow the law, why should they follow their contract with you?

2008
In March 2008, Connecticut Attorney General Richard Blumenthal's office released a statement saying they were joining 20 other states in fighting a massive deceptive marketing campaign attempting to sell extended auto warranties. He claimed to have received complaints against numerous companies involved in the scam, including:

Company Name	BBB Grade
National Auto Warranty Services of Missouri aka US Fidelis	F
Consumer Protection Services of Missouri	F
Auto One Warranty of California	F
Great Atlantic Warranty of Florida	F
Warranty Activation Headquarters of Missouri	F
Automotive Warranty Advisors of Florida	NR**

* — Data retrieved from Better Business Bureau reports as of 8/1/2010.
** — Company is no longer in business or the BBB has received so many complaints they have not had time to properly review them.

These are just a sampling of the lawsuits filed in this industry. The hands down, worst extended auto warranty company is US Fidelis. They are so corrupt, they deserve their own very special spot: US Fidelis: Example of Corruption