KMOX 1120AM

Local

Judge Approves $26.5 Million in US Fidelis Bankruptcy Payout

View Comments
usfidelis
News

Get Breaking News First

Receive News, Politics, and Entertainment Headlines Each Morning.
Sign Up

ST. LOUIS (AP) – A federal bankruptcy judge has given the go-ahead for a plan that would pay about $26.5 million to hundreds of thousands of customers and other creditors of US Fidelis.

The St. Louis Post-Dispatch reports that U.S. Bankruptcy Judge Charles Rendlen III approved the plan on Monday.

Wentzville, Mo.-based US Fidelis was once among the nation’s leading sellers of vehicle-service contracts before it collapsed in 2009, accused of cheating customers by selling them vehicle protection coverage that was essentially worthless.

About 625,000 consumers purchased vehicle-protection plans from US Fidelis.

The plan calls for about $14.1 million to go to a national consumer-restitution fund administered by state attorneys general.

© Copyright 2012 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.

View Comments
blog comments powered by Disqus
Follow

Get every new post delivered to your Inbox.

Join 3,926 other followers