States Sue Marketers Of Auto Service Contracts

Several state attorneys general have sued two companies that sell automobile service contracts, alleging that they misled consumers by claiming the products were extended warranties.

Ohio Attorney General Richard Cordray says a lawsuit filed Thursday in Ohio alleges that Missouri-based U.S. Fidelis and California-based Credexx Corp. used misleading tactics to sell contracts administered by separate companies. Credexx does business as Auto One Warranty Specialists.

Cordray says consumers have filed dozens of complaints.

Besides Ohio, attorneys general in Idaho, Kansas, North Carolina and Washington filed complaints against both companies. Iowa, Pennsylvania, Texas and Wisconsin also sued U.S. Fidelis.

Representatives of the companies could not be reached for comment.


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