The company that once sponsored the Rusty Wallace NASCAR team, US Fidelis has filed for Chapter 11 bankruptcy protection, this transaction took place on March 1, 2010. According to the court records, the company has accumulated $25.8 million in debt, has 474.4 million in accets, $65 million of which the is owed to the company from its two owners.
The company reported that they generated $246.5 million dollards in revenue for the sale of service-contracts. And now, there is no one available if you need to access the benefits of your service-contract. In fact the companies troubles began to mount last April when complaints started streaming into the office of the Beter Business Bureau and the Attorneys General over the company's deceptive business practices.
In 36 months, the BBB received 1,100 complaints and over 33,000 inquiries, which lead to the filing of a law suit against the company by Missouri Department of Insurance. BMW North American jumped in and filed a suit against the company for illegally using it's trademark name without proper affiliation. It looks like the company will receive a number of class-action lawsuits as well.
Hopefully, none of our readers need be to concerned of their coverage but, if you discover that your service-contract is one owned my US Fidelis, please contact our Finance Director @ 727-344-3344 to get proper protection for your vehicle.
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