In Bankruptcy, Bankruptcy In The News, Blog

A nationwide scam has been stealing money from thousands of people by faulty contracts for auto services. According to NBC News, the Attorney General in Texas along with 8 other states, including Washington and Ohio, have partnered together in getting control of the U.S. Fidelis bankruptcy liquidated assets. This company has been around the country and known for their contract making for car services. Allegedly this they deceived thousands of customers in the state of Texas by selling them vehicle contracts that were worth nothing.

U.S. Fidelis convinced their customers that their service or warranty plans were running out and that they needed to renew their plans while promising that their coverage would be better and they would offer the same assistance as the other warranties. Where this company went wrong was that none of their plans offered remotely close to what they promised. Over time the authorities caught wind of the companies taking advantage of clients and since then have shut it down entirely. In Texas, a fund has been established in order to help repay some of the victims of this financial crime.

U.S. Fidelis was also known for their spamming over the internet and telephone, often with false advertisements and offers. As a result of this company’s crime against thousands of people, the Federal Bankruptcy Court in St. Louis, Missouri created a $14.1 million fund in order to compensate for some of the funds that were stolen to the victims. It is reported that out of these thousands of people 69,000 of them were in Texas. The authorities are seeking for ways to hold this company accountable for their actions and illegal contracts. When U.S. Fidelis was closed during bankruptcy filings, the company’s assets were liquidated in order to be used as recompense to the creditors. The partners of U.S. Fidelity have completely acknowledged their crime and have given their own personal assets to the funds that are to pay back the individuals.