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US Fidelis declares bankruptcy

by Ray Preston

KMOV.com

Posted on March 1, 2010 at 10:12 PM

Updated Tuesday, Mar 2 at 11:12 PM

If you're a driver with a contract with US Fidelis, you might be wondering tonight whether the contract is still good.  The company filed for Chapter 11 bankruptcy protection today.

The company said it will honor the contracts.  If you have any questions for the company, they urge you to call their 800 number (read the statement below for the number).

The Better Business Bureau is also scheduled to release a statement tomorrow concerning the bankruptcy.   The BBB says it's received 1800 complaints.  The company has been accused of high-pressure sales tactics and deceptive marketing.  A spokesperson for US Fidelis says the company's modified its way of conducting business.  The BBB says if you continue to have trouble you should contact the Better Business Bureau, the Missouri Attorney General or the U.S. Bankruptcy Court.

Here's the statement from US Fidelis:

ST. LOUIS, Mo. (March 1, 2010) - US Fidelis, Inc. announced today, March 1, 2010 that it filed a voluntary petition for relief under Chapter 11, Title 11 of the United States Code in the United States Bankruptcy Court for the Eastern District of Missouri. US Fidelis was at one time the nation's largest marketer of vehicle service contracts, and suspended all sales and marketing activity in December 2009. US Fidelis now employs approximately 109 people.

US Fidelis continues to assist customers with their existing vehicle service contracts while the bankruptcy process moves forward. US Fidelis and its more than 100 employees remain fully available to customers to provide service and assistance. The company also announced that it will have a Chief Restructuring Officer, Scott Eisenberg of Amherst Partners, LLC, to lead the company during its efforts to reorganize in Chapter 11.

Mr. Eisenberg stated that it is important to point out that each customer has established contractual relationships with third party insurance and administration companies. All contracts remain valid and customers continue to have vehicle service claims paid by these independent companies. The administration companies' funds used to pay those vehicle service claims are not affected in any way by this bankruptcy proceeding. Customers will continue to have coverage pursuant to the terms of their vehicle service contracts.

Customers wishing to discuss their account may call their vehicle service contract administrator at the number listed on their contract, or a US Fidelis representative can be reached live by calling 1-800-649-1856.

US Fidelis is represented by Robert E. Eggmann with the law firm of Lathrop & Gage LLP. A member of the firm's bankruptcy practice, Mr. Eggmann practices in Lathrop & Gage's Clayton, Mo., office.

 

 

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