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Former owners of auto warranty seller US Fidelis banned from operating in NC

North Carolina Attorney General Roy Cooper said today that the former owners of auto warranty seller U.S. Fidelis have been permanently banned from selling or pitching auto warranties in the state.

Cooper and 10 other state attorneys general reached an agreement with Missouri-based U.S. Fidelis, which was once the leading seller of extended car warranties. The company declared bankruptcy earlier this year.

Cooper filed suit against U.S. Fidelis and its two owners, Darain and Cory Atkinson, in April, claiming they misled consumers about the benefits and coverage of service contracts, failed to provide written contracts to some consumers, failed to disclose key terms and restrictions and failed to pay refunds when requested.

The settlement requires the Atkinsons to comply with restrictions on any future business they may operation. They also must each pay North Carolina $4 million in civil penalties plus investigative costs.


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