Avoid “extended warranty” provider USfidelis

If you’ve been watching TV lately, you’ve likely seen ads for USfidelis auto repair coverage. While we don’t recommend extended service contracts to start with, we advise that you be especially wary about doing business with this company, which has been criticized by the Better Business Bureau and others.

One of the USfidelis ads features NASCAR legend Rusty Wallace, whose NASCAR team is sponsored by the company.

“Believe me, I know the value of good repair service. I know how expensive it can be,” Wallace says in the commercial. He says that a USfidelis plan “can save you thousands of dollars by tak­ing repair bills like these and cutting them down to size.” As he speaks, a counter showing a list of repairs totaling more than $10,000 resets to $0. Wallace adds that the company’s coverage pays for repair bills and provides other benefits, such as roadside assistance. 

THE REAL DEAL

USfidelis coverage is available for new cars and used cars under 15 years old with fewer than 200,000 miles. Although it calls its plans extended warranties, the coverage can be most accurately described as a pre­paid repair contract. If you have a repair bill, USfidelis will pay it for you, less a de­ductible. The company sells more than 50 plans provided by independent vendors.

Its Web site provides no pricing infor­mation and only general descriptions of four coverage categories, including a new-car bumper-to-bumper plan and stand-alone powertrain protection. The site also gives general information about coverage limits, advising you to refer to a contract for a list of exclusions.

When we called USfidelis to ask for details on the coverage available for a 2002 Toyota Camry with 104,000 miles, we got a high-pressure sales pitch for a five-year, 100,000 mile “Powertrain Plus” plan with a $50 deductible. Initially we were told the coverage would cost $2,775, including an immediate 20-percent discount. The more we hesitated, the lower the price went, eventually drop­ping to $2,225 after the rep threw in, among other things, her “employee pricing bonus” and $25 off the $150 activation fee.

The sales rep said that she couldn’t send us a contract to read until we ordered the coverage, but that we could cancel under the company’s 30-day money-back guarantee if we were dissatisfied.

She repeatedly warned that if we didn’t sign up right then, the price would be higher, and we’d be required to provide an inspection from a Toyota dealer to prove our Camry had no pre-existing mechanic problems. If we signed up immediately, she said, “we kind of trust you up front.”

The company has received a failing grade from the Better Business Bureau based in part on a pattern of grievances, some of which remain unresolved or took too long to address. Consumers have  made 1,077 complaints against USfidelis over the past 36 months, alleging difficulty in canceling policies and obtaining refunds; misleading company advertising; and a fail­ure to pay for vehicle repairs, among other issues.

In March 2008, the Missouri Attorney General filed suit against the company, doing business as National Auto Warranty Services Inc., accusing it of sending consumers misleading letters that their warranties were about to expire and of violating Do Not Call laws. The case is pending. The company’s Web site says it has eliminated telemarketing and that it is “continuing to adjust other marketing efforts to avoid even the possibility of any confusion among prospective customers.”

The bureau says the firm also has done business as US Fidelis Administration Services Inc., Dealer Services, N.A.W., and Dealer Warranty Division.

We called the company for interview. A company spokesman promised that the chief executive would call us back, but we did not hear back.

THE BOTTOM LINE

When it comes to extended service contracts, we’ve found that the cost of repairs is generally less than the price of the coverage itself. In ad­dition, companies that sell these plans are not subject to the same close regulation and oversight as insurers.

But if you still want to buy one, we rec­ommend that you avoid USfidelis.–Anthony Giorgianni

Comments

[Erica@USfidelis]

I wanted to make you aware of some other important facts regarding this. The company has more than 300,000 current customers, and the companies USfidelis has connected their customers to have paid out over 58 Million dollars in claims to USfidelis customers. USfidelis is the largest and also the most up-to-date company relating to the new standards and practices that this industry is demanding right now. No other company can match USfidelis in that regard because the company is committed to treating each and every customer fairly and honestly and is delivering real value (58 Million dollars of value).

I am not sure when this reporter contacted USfidelis about a contract on a Camry, but for several weeks, the company has been making available to any potential customer a copy of a sample contract for their review. That is in addition to the 30 day, money back guarantee policy that has been in place for some time. It is unusual to have a company send out a signed contract on a product that has not been purchased, yet USfidelis has listened to consumers and is getting potential customers a sample contract to view before purchasing. All customers who do purchase are immediately sent the entire contract with an unconditional 30 day money back guarantee. This, and many other changes, have been made over the past year to establish standards and practices that are leading the industry. USfidelis is working with regulators to help ensure that everyone in this field lives up to the same high standards the company has established for itself.

If you want more information about USfidelis or vehicle service contracts, go to www.usfidelistruth.com. USfidelis takes very seriously the service the company provides to consumers – helping connect them with the right vehicle service contract during an economic crisis that has left many people with repair bills that they cannot pay.

[Charlie]

Right you are up standing crooks. Just like the credit card companies who send the small print that takes a crooked lawyer to interpit. Losers.

[Dick Hodgson]

Amen! I got the "it's just the same as your new car bumper-to-bumper warranty" pitch on my 2007 Jeep Commander. When the contract actually arrived, it excluded my DVD player, multi-disc CD changer, navigation system, etc., etc. Basically, if it looks like an expensive component that isn't essential to the operati0on of the vehicle, it's not covered. When I called to cancel the contract, I explained that my reason for cancelling was that the product had been misrepresented. The customer service weenie then launched into an agrument about how Fidelis products compared favorably to all others. I couldn't get him back to the point -- that his sales rep had lied. Finally, I had to get rude to get him to agree to cancel the contract. Even then, he "couldn't provide a confirmation" of the cancellation. I had to callback the enxt day and start the whole process with another sales puke (who I finally cut off and said just confirm the cancellation and shut up about the rest).
Run away from these people!!!

[Nancy & Chris C.]

If USfidelis collects half the CR quote per policy 1113 dollars and pays out 194 dollars per customer (Erica@USfidelis comment) you can see what drives this company. 919 X 300,000 = 275,700,000 dollars.

[JK]

Have you guys seen the commercials for Stopreapirbills.com. I have heard that they are also located in Missouri and started by former US Fidelis employees and are actually worse when it comes to there policies when you contact them via phone about there product. Then a new commercial comes on the TV for another company called Mogi. Investigated them a little and they are also located in Missouri. Has anyone heard of them or dealt with them yet.

[M J]

Something you should be aware of: US Fidelis does not pay for any of the repairs; the warranty company that the contract is written through pays for the repairs. US Fidelis pays nothing on the repairs; they are a broker of warranty contracts. They do not pay for the claims, which would indicate that the commercials are fraudulent.

[Confused now]

I have both seen the TV ads, and called USfidelis they claim to be honest, and they have given me details over the phone that seem very good. The salesman that I spoke to said all of the right things, to include the unconditional 30 day money back guarantee.

Here is how the pricing went, so far. I have not agreed to the plan yet. I was ready, but for some reason I have a few reservations.

Pricing so far:
My call to them from the TV Ad

5 year 100,000 mile extended warrenty mileage extended to 150,000 miles.
total price $2,975.00 $295.00 down $148.89 x 18 months with a $100.00 deductable

before the call ended the price became
$2,895.12 total $150.00 down 114.38 x 24 months

Today July, 16, 2009 I received a call from them. The pricing was as follows:

$2,475.00 $124.00 down $97.96 x 24 months

before the call ended based on my VIN the price was as follows:
$2,675.00 $133.75 down $105.89 x 24

[Confused now]

I have a 205 GMC Sierra Crew Cab loaded: Memory power heated front seats, full back seat. Bose speakers. Independent radio in tha back, power windows, OnStar, XM Satelite radio, 5 CD Cd player, long bed 4X4, polished wheels duramax 6.6 L, tow package, driving lights, 7 computers to keep the truck running.
it has 54,000 miles on it now, until I drive it a little more tomorrow.

Can anyone tell me whom US Fidelis writes contracts for? There have not been any BBB complaints here in Utah. There is not any listing for US Fidelis in the Utah BBB system.

GM offered me an extended warranty, for about $4,000.00 that would have taken me to I believe 60,000 miles, and had a lot of exclusions. Now I say buy an extended warranty at the time of purchase, learn from the past.

Any repair on my truck is very expensive. I had 5 major repairs done under warranty, that if I would have had to pay out of my own pocket, would have amounted to nearly $18,000.00 The least expensive repair part along was $750.00 seat controller computer. This was replaced on the same seat two (2) times, other repairs ranged from a kinked gasket (at the factory), Major transfer case /Transmission, Steering box (I've never had one go out on any used car that I have owned.)

[Confused now]

You see I want an extended warranty, but not if it excludes my electronics, which there is a lot with just the radio and CD player. Can any of you suggest a good warranty company to get an extended warranty through?

jbshandrew@comcast.net

For US Fidelis folks:

You need to get me in contact with customers who have extended new vehicle warranties in Utah. Both happy and angry customers. If you cannot do this, you will not get my business!

[Mark]

Erica @ usfidelis Ummm...an entire (and separate) website dedicated to saying 'We run an honest business' (www.usfidelistruth.com); ok, can't get past that one. Wow, the other large firms really missed that tactic (oh, a website that says we are honest). It's that type of brilliant thinking that keeps you digging your way out of a hole with a shovel while the rest of the world simply stares (at the fools). Do you really think (tongue in cheek) that is an effective counter-balance to the myriad complaints on this one site alone? Free advice, Erica, get out while you can, else be complicit with this band of crooked incompetents! They will use you (already have), you're a dupe, a pawn.

[Erica@USfidelis]

Confused Now,
Unfortunately we cannot give out our customers' information. However, we do have some customer testimonials on our website at http://www.usfidelis.com/Testimonials.aspx. I hope that you find this helpful.

[GSD]

My wife just called US fidelis yesterday, July 21 2009, and she got the same speech from a pushy sales rep that Anthony Giorgianni and Confused Now got. I even looked at the pricing my wife wrote down, and it went the exact same way. Every time she said "NO THANKS", the price went lower. She was wondering how low they would go if she kept saying no. When she asked for a sample contract, just to see exactly what was coverd, the sales rep said "we don't do that". So Erica@USFidelis, if your gonna makes claims about your company, maybe you should make sure they're accurate.

[Joe]

I used to own an Extended Warranty Marketing Company just like US Fidelis. Well not the same because we actually sent copies of contracts to people, we never lied about the coverage and we provided full contracts online for customers to view. A little history of us fidelis. They have changed names 5 times so far. They started out by mailing the entire US. When that became ineffective the started the whole autodialing craze and phone blasted millions of people every day. Now that the FCC and FTC and all states AG's have put a stop to that. They have begun using TV commercials. They have a solid reputation for pushy sales, outright lies to get you to buy and waiting until lawsuits are filed to issue customer refunds. If there is an industry that needs to be regulated its this one. All they are is an agent, a very large agent but an agent.

There is nothing honest about any of these companies. The policies cost on a powertrain are around $500 thats actually the cost then they mark it up $1500-$2500 to sell it to you. Of course there is no way you could possibly get back in repairs what you paid in. A miracle would have to occur. B2B policies cost anywhere from $900 on a brand new Toyota or Honda to $1900 for a 40k mile Mercedes.

The best thing anyone can do is NEVER buy an extended warranty, whether its from a dealer, jdbyrider, or one of these direct marketing agents. The insurance companies make tons of money selling the warranties at cost which means your not likely to break even paying cost! Imagine with a $1000-$2500 mark up added just for you! ITS NEVER WORTH IT!!!!

[Paul]

We have a 2007 Taurus. when we bought it we bought the Ford extended warranty for $1200. So far to date it has paid for it self many times over. Last year the A/C compressor went out and the repair was about 1100. We only had to pay a $200 deductible. So far this year the Alternator went out. It was $214 for a Orielly remain plus my labor or the $200 deducible and they do all the work. Total on that one was $350 but as stated before all we paid was the deducible. At the moment it is in there to have a new transmission put in it and all it is going to cost me is the same $200 deducible. So for an extended warranty that I did not need I think I got a good deal. This has paid for it self and then some. Paid a bit over $2000 for what will be over $5000 in work and parts

[Chris]

Wow !! I am glad I ran across this post. I was getting ready to contact USFidelis from their television commercial. I had forgotten the name and did a web search to find out. And now I find all of this negative publicity on them. Thank you all or I would have made a big mistake. I will not be contacting this company !!

[Liz]

I'm with Paul!! I was also doing a search on the company and ran across complaints when i typed in usfidelis! i'm having a minor problems with my car now (2001 mazda tribute) and its a minor fix but my boyfriend says today, after you get this fixed, you NEED TO GET US FIDELIS! BOY WILL HE BE HAPPY I FOUND THIS!!! Thanks to all!! I will not be contacting this company!

[Liz]

oooooops!! I meant to say im with Chris!! anyway, still not going to do business with usfidelis!!

[Brooklyn]

Erica how much do they pay you to say nice things? I know all about your company and they are slimy and slick! The reps say one thing and the paperworks states another. Spending more than half and hour fighting with a rep about what you are paying for is a bad joke!!!!!!!!!! 30 money back is a joke my friend is still waiting 4 months later. She is a single mother of 3.

[Sparky]

Other companies don't need a site called "CompanyNameTruth.com."

'Nuff said.

[Ex Employee (Thank God)]

Erica you are well paid to surf the internet for negative comments and "REBUTTAL" them. I worked at US Fidelis when it was Dealer Services and National Auto Warranty Services and US Fidelis. They are in trouble with 40 out of 50 state attorneys general. They are being sued by BMW for using their name to sell contracts. A St. Louis law firm has a class action lawsuit against them and rightfully so. To whoever could not find the Better Business Bureau website for them, type in 63385 for the zip code and their 'F' rating will show up for you. Please everyone, if you want to see more information go to the St. Louis Post Dispatch website and search for US Fidelis. Make sure you have some time to do some reading--www.stltoday.com

[kim c]

has anyone ever heard of c.a.r.s extended warranty??

[RJ]

Just judging by others comments -- stay as far away from these
guys as you can. This is an empire built on fraud! I feel sorry
for everyone scammed. What a big scam. These guys should be in prison for life!

[Dave]

I don't think there is a Erica, I wouldn't give out my name if I were her. The company is a sham and so far to date they have cost me over a 1000.00. 275.00 of it because I called them and told them about my car and the sales person told me to take it in. They did not cover anything. They lied to me when I bought the plan and will try to find anything they can to get around paying you. These people are snakes and trained to be that way. Run Forest Run.

[Zzzoomer]

Whew................ Was out searching the web for extended warranties for a very late model motorcycle I am buying that is just out of warranty. US Fidelis search is how I came across this blog. I know one thing, all of the extended warranties offered by Walmart, HHGregg, Best Buy etc. provide great profit margins for the merchants. Ever notice how they push them on everything from a $25 electronic device/appliance all the way up to the top of the line washer/dryer sets? I refuse them EVERY time and have yet to regret it.

Another thing - if you purchase them with your charge card (or debit card used as a charge) and the thing breaks in the first year, you have a very good chance of getting all of your money back through the chargeback process. Each card holder agreement is different - specifics for chargeback procedures are outlined there. Almost all of them I have seen includes a "defective product" clause and usually gives a one year period regardless of the product warranty.

[Chuck in AL]

I was contact by these crooks and given their hardline push. Told me a bunch of different prices, which always sounds fishy to me. Ended up telling me that I had to sign right away to get there best deal or I too would face inspections and so forth. Well, I went ahead and did it and let me tell you, I've filed 4 claims and none have been paid. Had my AC compressor go out, they claimed it was my fault and that operator error led to the failure. So now you tell me, how do you operate the AC in a way that causes failure???? So next my transmission started acting up, one of the gears or something in there broke up. Wsa told that it was my fault and that I must have been negligent! Then I had some type of computer go out and was refused because I hadn't had the oil changed on time. I don't know what that has to do with anything ,but that's what they done told me. So then some switch that controls all of the AC/heating vents went out and I was told that part was considered expendable like tires and that they weren't covering it. I think the total repair cost out of my pocket was almost $5500.00 and they never paid a dime for any of my claims. Came up with the stupidest things I've ever heard!
So then I decided I didn't want to do this no more because it was obvious that they had no intention of paying any claims. They wouldn't let me out without paying the remaining balance on their worthless product. I'm on a fixed income and am 77 years old, I can't afford all that. I bought the dern thing because I was hoping to protect my meager savings from being ravaged byt repair bills. Well, I was ravaged alright! These guys are crooks through and through.