July 29, 2009

BMW sues US Fidelis over notices

BMW has filed suit in New Jersey claiming US Fidelis cons customers into thinking the service contract broker is affiliated with the automaker.

The suit said US Fidelis sends notifications to BMW owners that include language such as BMW Notification, while reminding them their BMW warranty may be expiring soon, the St. Louis Post-Dispatch reported Wednesday.

The German car company's suit seeks punitive damages and a forfeiture of all profits made from BMW owners. It also seeks to block US Fidelis from using BMW trademarks.

BMW said it had received complaints from customers who feared the company had given out personal information.

In a statement, US Fidelis Chief Executive Officer Chris Riley said this situation will be resolved to the satisfaction of all parties.

US Fidelis, formerly named National Auto Warranty Services, settled a previous suit with Subaru of America for $30,000 and promised it would stop using Subaru trademarks.