Drivers left with worthless warranties

Experts warn more companies involved with the sale of auto warranties may implode.

June 1, 2010 at 9:23PM
(The Minnesota Star Tribune)
Photo: St. Louis Post-Dispatch
Photo: St. Louis Post-Dispatch (The Minnesota Star Tribune)

In case you missed my Sunday column while you were lounging by the lake, I wrote about an 82-year-old Brooklyn Park man who found out his $2,400 car warranty was worthless. Art Pfalzgraff didn't know that the Missouri company that originally sold him the warranty, U.S. Fidelis, is in bankruptcy and facing several lawsuits.

Matthew Hathaway, a reporter with the St. Louis Post-Dispatch, has written extensively about the downfall of U.S. Fidelis and its owners, Darain and Cory Atkinson. He reported allegations that the brothers used more than $100 million of the company's money to pay for expensive cars and several homes, including the $17 million mansion pictured above. For more of Hathaway's comprehensive coverage of U.S. Fidelis, click here.

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about the writer

Lora Pabst

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