The Vehicle Protection Association is gratified to see some measure of restitution being provided to affected consumers.
ST. LOUIS (PRWEB) July 25, 2012
The Vehicle Protection Association (VPA), a not-for-profit association promoting regulatory transparency, education and accountability for automotive service contract sellers, supports the agreement reached last week among various constituents involved in the US Fidelis bankruptcy proceeding, including a number of state attorneys general.
Darain and Cory Atkinson, former co-owners of US Fidelis, which was once the nation’s largest auto service contract vendor, pleaded guilty to charges of fraud in federal cases earlier this year (US District Court, Eastern District of MO: 4:2012-cr-00122) after the company filed for bankruptcy in 2010. The agreement, approved by the United States Bankruptcy Court, creates a $14 million consumer restitution fund for US Fidelis customers.
Vehicle service contracts, sometimes erroneously referred to as extended auto warranties, protect consumers against unwanted and costly repairs to their vehicle. Specifically, a vehicle service contract helps cover the cost of certain repairs, replacements or labor incurred after a manufacturer’s warranty expires.
“The Vehicle Protection Association is gratified to see some measure of restitution being provided to affected consumers,” said Chris Carenza, executive director of the VPA. “We will continue to work to educate consumers and do everything in our power to ensure that industry accountability is a priority.”
Members of the VPA are required to abide by the VPA Standards of Conduct, an ethical code of conduct established to uphold the rights of consumers who purchase auto service contracts.
About the Vehicle Protection Association
The Vehicle Protection Association (VPA) is a not-for-profit trade association representing firms that are active in the automotive service contract industry. Members include service contract marketers, administrators, insurers, payment providers and software providers. VPA currently has more than 60 members. The organization is committed to ensuring regulatory compliance among members, educating consumers on their rights, and otherwise ensuring the integrity of the automotive service contract industry. For more information, visit http://www.vpanet.org.