Frequently Asked Questions

  1. Who is involved in oversight of the Restitution Fund?
  2. Why is distribution taking so long?
  3. Isn’t one year a long time for issuing checks under a settlement?
  4. Do you know anything about the sale of the Atkinson Cayman Island house?
  5. I. WHY DID I RECEIVE NOTICE FROM THE BANKRUPTCY COURT?

  6. Why am I receiving a Notice and Proof of Claim form from the U.S. Bankruptcy Court for the Eastern District of Missouri?
  7. II. MORE ABOUT US FIDELIS

  8. Under what other names did US Fidelis do business?
  9. Is US Fidelis still in business?
  10. Is US Fidelis related to Fidelis Care of New York or the US Catholic Health Plan?
  11. US Fidelis made millions of dollars. What happened to its assets?
  12. What happened to the individuals who ran this company?
  13. III. WHO IS MY VEHICLE SERVICE CONTRACT WITH?

  14. What company is my Vehicle Service Contract (“contract”) with?
  15. How can I find out who my contract is with?
  16. IV. DO I NEED TO CANCEL MY CONTRACT? IS MY CONTRACT STILL VALID?

  17. Do I need to cancel my contract?
  18. Is my contract still valid?
  19. I’m still making payments on the contract. Will it be honored?
  20. V. WHAT IS A CLAIM (RIGHT TO PAYMENT)?

  21. Do I need to take any action in the bankruptcy court?
  22. What is a “claim” in the bankruptcy court?
  23. What is a Proof of Claim?
  24. VI. AM I ELIGIBLE FOR PAYMENT?

  25. What Consumer Claims may be eligible for payment?
  26. VII. HOW DO I FILE MY PROOF OF CLAIM?

  27. What is the deadline for filing a Proof of Claim in this case?
  28. To submit a Proof of Claim form, what do I do?
  29. If I do nothing, what will happen?
  30. What if I want to request a refund after the Proof of Claim filing date expires?
  31. If I want a refund, how do I fill out the Proof of Claim form?
  32. If unauthorized deductions were made from my bank account, how do I fill out the Proof of Claim form?
  33. If I received a Money Back Guarantee, how do I fill out the Proof of Claim form?
  34. If I received unwanted automated telemarketing calls, how do I fill out the Proof of Claim form?
  35. If misrepresentations were made to me, how do I fill out the Proof of Claim form?
  36. What documents do I need to submit with the Proof of Claim?
  37. What if my contract expires after the Proof of Claim filing deadline and I later want a refund?
  38. What if my contract expires after the Proof of Claim deadline and I have a Money Back Guarantee?
  39. I already filed a Proof of Claim with the bankruptcy court. Do I need to file another Proof of Claim to be eligible to receive a payment from the Consumer Restitution Fund?
  40. I lost the Proof of Claim form I received in the mail. Where can I obtain another copy?
  41. If I have questions about my claim or need help completing the Proof of Claim form, who can I contact?
  42. VIII. HOW MUCH WILL I BE PAID AND WHEN?

  43. How much money will I receive from the Consumer Restitution Fund?
  44. When can I expect my refund?
  45. How will claims be paid?
  46. How much money will I receive for a refund claim?
  47. How much money will I receive if an unauthorized deduction was made from my bank account?
  48. How much money will I receive for my Money Back Guarantee claim?
  49. What if I have a Money Back Guarantee and my contract expired after US Fidelis filed its bankruptcy but before the Proof of Claim filing deadline?
  50. How much money will I receive for misrepresentation, Do Not Call and unwanted automated telemarketing calls?
  51. Can I be paid on both a refund claim and a misrepresentation claim?
  52. IX. WHAT IS THE CONSUMER RESTITUTION FUND?

  53. What is the Consumer Restitution Fund?
  54. How much money is in the Consumer Restitution Fund?
  55. Who is overseeing the Consumer Restitution Fund?
  56. X. WHAT IS THE PLAN OF LIQUIDATION?

  57. What is the US Fidelis bankruptcy case about?
  58. What is the “Plan” that keeps being mentioned?
  59. What type of Plan did US Fidelis file?
  60. Does the Plan say if and how I will be paid?
  61. Who is looking out for consumer interests in this Plan?
  62. What are the alternatives to this Plan?
  63. Why is the Plan giving “releases” to certain individuals and entities?
  64. XI. VOTING ON THE PLAN?

  65. Do I have to cast a ballot for or against the Plan?
  66. Where can I locate the ballot form and instructions so that I can vote?
  67. XII. CONTACT US

  68. Who can I contact if I have questions?



1. Who is involved in oversight of the Restitution Fund?

The Restitution Fund is administered by a company called Garden City Group, LLC, along with a Committee composed of representatives from the Missouri, Ohio, Texas, and Washington Attorney General Offices. These state Attorneys General as well as ten other states sued US Fidelis and the Atkinson brothers for unfair and deceptive practices. Missouri, Ohio, Texas and Washington Attorney General Offices represented consumers in the US Fidelis bankruptcy and negotiated the creation of the Consumer Restitution Fund.

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2. Why is distribution taking so long?

The Restitution Fund was established by court order and contains very specific provisions that must be satisfied before distribution. One provision prohibits the Restitution Fund from paying a refund to any person that can obtain a refund from a company that is still in business. In other words, companies that are still in business do not get a free ride. These companies must pay their own claims.

This required the Restitution Fund to identify each company associated with a claim and then confirm that information with the company still in business. Misidentification of the company by consumers and by US Fidelis required additional processing and verification.

Companies were then asked to issue refunds to claimants. Some companies were reluctant to cooperate, leading to delays. Those companies that cooperated with this effort have issued refunds throughout the past year. The Restitution Fund sent follow up letters to consumers, notifying them that the Restitution Fund would not be paying them a refund, but would process their claim if they made a claim on some other basis.

The Restitution Fund also identified consumers that had on-going contracts with companies still in business. The Restitution Fund notified them that the Fund would not pay them a refund because they can make a claim for repairs or can cancel their contracts and obtain a refund. Other claims by these consumers, however, will be processed by the Restitution Fund.

The companies that are still in business have paid out approximately $3 million to consumers. This means more money will be available to distribute to consumers who filed claims with the Restitution Fund.

In addition to working with companies still in business, the Restitution Fund sent letters to consumers that filed a B10 claim form with the U.S. Bankruptcy Court. The Restitution Fund requested that these consumers complete the Restitution Fund claim form because additional information was needed to process their refund claims. The Fund received a poor response from these claimants, which required hand processing each claim and cross-referencing to available data to determine the claim amount.

We are now in the process of finalizing the claim amounts, determining pay out amounts, determining hold-back amounts for administrative expenses and future claims and establishing an appeals process. We expect checks to be issued no later than end of November if not earlier.

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3. Isn’t one year a long time for issuing checks under a settlement?

The time needed to provide checks to consumers is based on many factors, including the complexity of the settlement, costs, resources, etc. One year is not an usually long time when compared to other settlements. For example, the Federal Trade Commission recently issued checks in July/August of 2013 to 10,000 consumers over a case it settled in 2010.

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4. Do you know anything about the sale of the Atkinson Cayman Island house?

The US Bankruptcy court provided oversight of the liquidation of all assets of US Fidelis and the Atkinson brothers. The Restitution Fund was not involved in the sale of the US Fidelis or Atkinson assets

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I. WHY DID I RECEIVE NOTICE FROM THE BANKRUPTCY COURT?

5. Why am I receiving a Notice and Proof of Claim form from the U.S. Bankruptcy Court for the Eastern District of Missouri?

The records of US Fidelis, Inc. (“US Fidelis”) show that you were a customer of US Fidelis or one of the other names under which US Fidelis did business. As a former customer, you may be eligible to file a Proof of Claim form as a result of US Fidelis’ bankruptcy case. Your Proof of Claim will be reviewed by a claims administrator to determine whether you are entitled to receive compensation from the Consumer Restitution Fund established under the US Fidelis Plan of Liquidation.

You may have a claim against the Consumer Restitution Fund if (1) you requested, but did not receive, a refund from US Fidelis; (2) you had an unauthorized deduction from your bank account; (3) you received the incorrect refund amount; (4) you made a timely request for, but did not receive, a Money Back Guarantee refund; (5) US Fidelis made a misrepresentation to you in writing or on the telephone; (6) you received unwanted automated telemarketing calls; or (7) for any other reason.

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II. MORE ABOUT US FIDELIS

6. Under what other names did US Fidelis do business?

  • National Auto Warranty Services, Inc. (NAWS)
  • Dealer Services*
  • Big Time Productions

*US Fidelis' use of the d/b/a "Dealer Services" should not be confused with N.C.W.C., Inc. d/b/a Dealer Services, Inc. and/or Dealer Services that does business out of the State of New Jersey. N.C.W.C., Inc. d/b/a Dealer Services, Inc. and/or Dealer Services is not the same entity as the Debtor US Fidelis.

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7. Is US Fidelis still in business?

No. US Fidelis stopped operating shortly after it went into bankruptcy in March 2010 and is liquidating its assets.

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8. Is US Fidelis related to Fidelis Care of New York or the US Catholic Health Plan?

No, there is absolutely no business relationship or association between the companies.

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9. US Fidelis made millions of dollars. What happened to its assets?

US Fidelis’ growth was fueled by a number of illegal, fraudulent or misleading practices. These practices are described in more detail in the Master Disclosure Statement. Before the company filed bankruptcy, the two brothers who owned the company, Darain Atkinson and Cory Atkinson, siphoned funds in excess of $100 million out of the company. Once the bankruptcy case was filed, the Atkinson brothers were sued by the bankruptcy estate to recover what remained of these funds. The Official Committee of Unsecured Creditors (the “Creditors Committee”) is a committee that was appointed by the U.S. Trustee and is composed of creditors holding some of the largest claims against US Fidelis. Because of the efforts by the Creditors Committee and lawsuits filed by thirteen Attorneys General, the Atkinsons agreed to turn over their assets to the bankruptcy estate to be used to pay creditors.

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10. What happened to the individuals who ran this company?

Darain Atkinson and Cory Atkinson were individually sued by more than a dozen state Attorneys General and the bankruptcy estate. As part of settlements with the Attorneys General and the Creditors Committee, the Atkinsons agreed to turn 100% of their assets over to the bankruptcy estate. Further, both Darain Atkinson and Cory Atkinson were charged criminally in the State of Missouri. Darain Atkinson pled guilty to stealing, insurance fraud and unlawful merchandising practices in Missouri state court, and pled guilty to charges in federal court. Cory Atkinson has also been indicted on state and federal charges and his case is still pending as of May 2012.

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III. WHO IS MY VEHICLE SERVICE CONTRACT WITH?

11. What company is my Vehicle Service Contract (“contract”) with?

Although you may have dealt with US Fidelis, your service contract may not actually be with US Fidelis, but rather with another company. US Fidelis marketed and sold contracts for companies associated with US Fidelis as well as many other unrelated companies. Check out “How can I find out who my contract is with?

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12. How can I find out who my contract is with?

The name of the company should be listed in your contract as the company responsible for paying repairs and refunds. Sometimes the company is referred to as an “Administrator,” “Provider” or “Obligor.” Check the definition section of your contract to determine the company that is responsible for providing and paying for repairs or providing refunds under the contract.

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IV. DO I NEED TO CANCEL MY CONTRACT? IS MY CONTRACT STILL VALID?

13. Do I need to cancel my contract?

YOU DO NOT NEED TO CANCEL YOUR CONTRACT.

If your contract is with a company still in business, you do not need to cancel your contract. You should research the company associated with your contract and consider whether you are better off keeping your contract in the event you need to repair your vehicle.

There is no guarantee of payment from the Consumer Restitution Fund because it is unknown how many claims will be filed, the amounts of claims filed, the total value of claims and the final amount of funds available for distribution. The Consumer Restitution Fund, the claims administrator and all other persons associated with the Consumer Restitution Fund make no representations or recommendations on cancellation of your contract. If you need additional information or advice, you are encouraged to consult the contract administrator, the company responsive for repairs, or an attorney.

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14. Is my contract still valid?

If the company responsible for repairs is still in business and your contract has not yet expired, the company that provided it to you is still obligated to pay for repair services covered under the contract for you.

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15. I’m still making payments on the contract. Will it be honored?

If you have an existing contract with a company that is still in business, you do not need to cancel your contract. The company that provided you the existing contract is still obligated to pay for repair services as covered in the contract for you.

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V. WHAT IS A CLAIM (RIGHT TO PAYMENT)?

16. Do I need to take any action in the bankruptcy court?

Yes. You need to file a Proof of Claim form in order to be eligible to receive a payment from the Consumer Restitution Fund.

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17. What is a “claim” in the bankruptcy court?

A “claim” is a creditor’s right to receive payment on a debt owed by US Fidelis.

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18. What is a Proof of Claim?

A “Proof of Claim” is a form used by a creditor to indicate the amount of the debt owed by US Fidelis. Essentially, a Proof of Claim is the document you submit to the bankruptcy court to request payment in the event funds are available for distribution.

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VI. AM I ELIGIBLE FOR PAYMENT?

19. What Consumer Claims may be eligible for payment?

Consumer claims eligible for payment include the following:

  • Unpaid refund claims for contracts cancelled or refund claims in which the consumer did not receive a full refund upon cancellation;
  • Unauthorized deductions from a bank account;
  • Money Bank Guarantee claims in which the consumer timely requested a refund and did not receive payment for a repair claim;
  • Misrepresentation claims made in the sale or marketing of contracts;
  • Do Not Call violations;
  • Unwanted automated telemarketing calls; and
  • Any other claim asserted by a consumer or governmental entity on behalf of consumers.

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VII. HOW DO I FILE MY PROOF OF CLAIM?

20. What is the deadline for filing a Proof of Claim in this case?

The deadline is October 5, 2012 for most consumer claims. However, there are exceptions for contracts that are cancelled or expire after the Proof of Claim deadline. You will be eligible to file a Proof of Claim for a refund until the date the contract expires. If you file a claim and your contract is with a company that is able to pay your claim, your refund claim will be referred to the contract administrator for payment.

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21. To submit a Proof of Claim form, what do I do?

To be eligible to receive compensation from the Consumer Restitution Fund, your Proof of Claim, along with all required documentation, must be received by Garden City Group, LLC, or submitted online, by October 5, 2012 as follows:

Via Online Submission

www.USFbankruptcy.com

Via Regular Mail

US Fidelis Claims Administrator
c/o Garden City Group, LLC
P.O. Box 9865
Dublin, OH 43017-5765

Via Hand Delivery or Overnight Mail

US Fidelis Case Administration
c/o Garden City Group, LLC
5151 Blazer Parkway, Suite A
Dublin, OH 43017

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22. If I do nothing, what will happen?

If you do not submit a Proof of Claim form, the Consumer Restitution Fund will have no record of your request and you will not be eligible to receive any payment from the funds available.

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23. What if I want to request a refund after the Proof of Claim filing date expires?

If your contract expired before October 5, 2012 and (i) with respect to an online Proof of Claim, you do not electronically submit such Proof of Claim on or before October 5, 2012 or (ii) with respect to a hard copy Proof of Claim, Garden City Group, LLC does not receive such Proof of Claim by October 5, 2012, such Proof of Claim will be untimely and you may not be eligible for any distribution from the Consumer Restitution Fund. If your contract expires after the Proof of Claim filing deadline of October 5, 2012, you may still have a right to file a Proof of Claim. Please see “What if my contract expires after the Proof of Claim filing deadline and I later want a refund.” for more information on whether you can file a Proof of Claim after the Proof of Claim filing date expires.

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24. If I want a refund, how do I fill out the Proof of Claim form?

Complete Sections 1, 2 and 3 of the Proof of Claim form. The information in Sections 2 and 3 are needed to determine the amount of your refund, if any. Fill out Section 1 as follows:

  • Check all the boxes that apply.
  • You can request payment for more than one type of claim (i.e. refund, Money Back Guarantee, misrepresentation or unwanted telemarketing calls). However, you will only be paid for the one type of claim that pays you the most money.

Complete Section 2 by providing the all the following information:

  • The date you purchased the contract. If you are not sure of the actual date, then indicate the approximate date;
  • The company your contract was with. Check the definition section of your contract to determine the company that is responsible for paying for repairs or refunds under the contract. Your contract is with this company.
  • The total purchase price of the contract; and
  • The total amount of all payments made on the purchase price and when you made your last payment on a payment plan.

Complete Section 3 by checking all the boxes that apply to your situation:

  • Check the first box and fill in the requested information if you notified someone that you wanted to cancel your contract and the date on which you notified such person or entity. If you are not sure of the actual date, then indicate the approximate date;
  • Check the second box if you did NOT notify anyone that you wanted to cancel your contract;
  • Check the third box and state the due date if you cancelled your contract by not paying a monthly payment that was due;
  • Check the fourth box and state the refund amount you received, if you believe that the refund amount was incorrect, and the refund amount you believe you should have received. Please answer all the applicable questions in Sections 1, 2 and 3, including the date you cancelled your contract and how much you actually made in payments.
  • Box 5: Check this box if you received payment on a repair claim. You may still be entitled to a refund even though you received payment on a repair claim. However, you must state the date you made the repair claim and the amount you or the repair company received for making the repair to your vehicle.

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25. If unauthorized deductions were made from my bank account, how do I fill out the Proof of Claim form?

Complete Section 1 and check the box “Other,” providing an explanation. Attach any documentation that provides evidence that an unauthorized deduction was made. Please ensure that any documents enclosed with your Proof of Claim include your full name, current address, Claim Number and Control Number. These items must appear at the top of each page you submit.

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26. If I received a Money Back Guarantee, how do I fill out the Proof of Claim form?

Complete all applicable questions in Sections 1, 2, 3 and check the first box in Section 4.

Be sure to include a copy of your Money Back Guarantee offer with your Proof of Claim form. Please ensure that any documents enclosed with your Proof of Claim include your full name, current address, Claim Number and Control Number. These items must appear at the top of each page you submit.

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27. If I received unwanted automated telemarketing calls, how do I fill out a Proof of Claim form?

Check the second box in Section 4 and indicate the number of unwanted automated telemarketing calls you received.

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28. If misrepresentations were made to me, how do I fill out the Proof of Claim form?

Check the third box in Section 4 and provide an explanation of the damages you suffered as a result of these misrepresentations. Please ensure that any documents enclosed with your Proof of Claim include your full name, current address, Claim Number and Control Number. These items must appear at the top of each page you submit.

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29. What documents do I need to submit with the Proof of Claim?

Documentation is only needed if you (a) received an incorrect refund; (b) had money deducted from a bank account without your authorization; (c) make a Money Back Guarantee claim; or (d) submit a claim for misrepresentations.

Please ensure that any documents enclosed with your Proof of Claim include your full name, current address, Claim Number and Control Number. These items must appear at the top of each page you submit.

If there is not enough space on the Proof of Claim form for any given response, please provide your answer on an extra sheet of paper. You must include your name, address, and Claim Number and Control Number at the top of each extra sheet of paper and reference the question to which you are responding.

If you are submitting a claim for a Money Back Guarantee offer, attach a copy of the Money Back Guarantee offer.

If you submitted a request for repairs to your vehicle under the contract and you or your repair facility received any reimbursement, no additional documentation is needed. However, be sure to indicate the amount that was received and the approximate date of receipt.

If you believe US Fidelis made misrepresentations to you in its mail solicitations or telemarketing sales, attach an explanation of the specific damages that resulted from those misrepresentation(s).

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30. What if my contract expires after the Proof of Claim filing deadline and I later want a refund?

After the Proof of Claim deadline expires, you may file a Proof of Claim if your contract has not expired as of the Proof of Claim Deadline and the company obligated to pay your claim is unable to pay your refund. You must submit your claim as soon as possible, but not later than the expiration of the contract. Submitting a claim does not guarantee payment.

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31. What if my contract expires after the Proof of Claim deadline and I have a Money Back Guarantee?

If you have a Money Back Guarantee claim, you have 90 days after your contract expires to file a Proof of Claim with the Consumer Restitution Fund. After this time, your claim may be disallowed. Submitting a claim does not guarantee payment.

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32. I already filed a Proof of Claim with the bankruptcy court. Do I need to file another Proof of Claim to be eligible to receive a payment from the Consumer Restitution Fund?

No, however, even if you already filed a claim in the bankruptcy case (from a template form you found on the US Bankruptcy Court website), it will greatly assist the claims administrator in processing your claim if you submit the Proof of Claim form that you received in the mail (or downloaded from this website) and submit it to the address listed above. It was created specifically for consumers in the US Fidelis bankruptcy case.

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33. I lost the Proof of Claim form I received in the mail. Where can I obtain another copy?

You may click on the Consumer Claim Form on this website to complete the Proof of Claim online.

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34. If I have questions about my claim or need help completing the Proof of Claim form, who can I contact?

There is valuable information on completing the Proof of Claim form in the instructions to the Proof of Claim and on this website. If you need additional assistance, you may call the US Fidelis Consumer Hotline toll-free at 1-877-691-8477.

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VIII. HOW MUCH WILL I BE PAID AND WHEN?

35. How much money will I receive from the Consumer Restitution Fund?

The amount each consumer will receive is uncertain because it is not known how many claims will be filed, the amounts of claims filed, the total value of filed claims, and the amount of funds available for distribution.

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36. When can I expect my refund?

After the Proof of Claim deadline of October 5, 2012, the claims administrator will review all claims that have been filed and process them as expeditiously as possible in accordance with the payment provisions in the Plan of Liquidation. Payments will be made as soon as feasibly possible.

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37. How will claims be paid?

Claims will be paid in the following order:

  1. Class One: Refund claims or claims for unauthorized deductions from a bank account will be paid first. Only after these claims are paid in full will the other types of claims listed below be paid.
  2. Class Two: Money Back Guarantee claims in which the claimant complies with the guarantee terms will be paid second. These claims will only be paid if refund claims and claims for unauthorized bank deductions are paid in full (Class One).
  3. Class Three: Misrepresentation claims, Do Not Call Claims and claims for unwanted automated telemarketing calls will be paid third. These claims will only be paid if the claims listed above for refunds, unauthorized bank deductions and Money Back Guarantees are paid in full (Classes One and Two).
  4. Class Four: All other claims that do not fall into Class One, Two or Three, listed above, may be paid if any funds remain after Classes One, Two and Three have been paid in full. Class Four claims will be paid pursuant to the Consumer Restitution Fund Agreement.

If there are not enough funds to pay all claims in a particular Class, then all claims within that Class will be paid pro-rata with no distribution to the next Class. For example, if there are not enough funds to pay all refund or unauthorized deduction claims in Class One, then all Class One claims will be paid pro-rata and there will be no distribution to Classes Two, Three or Four.

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38. How much money will I receive for a refund claim?

Consumers will receive (based on funds available) the unused portion of their paid contract. Any payment is subject to the availability of funds. However, if the company obligated to pay clams under the Vehicle Service Contract is able to pay the consumer, the consumer claim will be referred to the company responsible for payment.

For example and illustration only: Consumer A purchased and paid $2,000 for a 24 month Vehicle Service Contract that she cancelled on the 365th contract day. The unused portion of Consumer A’s contract would be fifty percent or $1,000 because she only received one-half of the contract’s value based on her date of cancellation. However, Consumer A had a repair bill of $500 that was paid by a company that is now out of business. The value of the repair ($500) would be deducted from the refund amount ($1,000 minus $500). Thus, Consumer A would be entitled to receive $500 subject to the funds available for distribution. If there are not enough funds available to pay Consumer A in full, she would receive a pro-rata share on account of her allowed claim based on the funds available.

For consumers that believe they did not receive an accurate refund, the consumer will receive the difference between the correct refund and the refund amount actually received, or the appropriate pro-rata distribution if there are not enough funds available to pay the consumers in that Class in full.

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39. How much money will I receive if an unauthorized deduction was made from my bank account?

You will receive the amount of the unauthorized deduction, subject to funds available.

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40. How much money will I receive for my Money Back Guarantee claim?

If you complied with the terms of the Guarantee Agreement, you will receive a lump sum of $250 if all refund and unauthorized deduction claims are paid in full (Class One). If there are funds available to pay Money Back Guarantee claims, you may receive either a full payment of the $250 on account of your allowed claim or a pro-rata payment.

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41. What if I have a Money Back Guarantee and my contract expired after US Fidelis filed its bankruptcy but before the Proof of Claim filing date?

You should file a Proof of Claim by the claim filing deadline of October 5, 2012.

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42. How much money will I receive for misrepresentation, Do Not Call and unwanted automated telemarketing calls?

You will receive a single payment of $30 if all refund, unauthorized deduction and Money Back Guarantee claims are paid in full (Classes One and Two). If funds are available to pay misrepresentation, Do Not Call and unwanted automated telemarketing call claims, you may receive either a full payment or a pro-rata payment based upon the funds available for distribution. If you list multiple unwanted automated telemarketing calls, you will still only receive a single payment of $30 subject to available funds.

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43. Can I be paid on both a refund claim and a misrepresentation claim?

No. You will be paid for only one claim, and you will be paid on the type of claim that results in the highest payment to you.

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IX. WHAT IS THE CONSUMER RESTITUTION FUND?

44. What is the Consumer Restitution Fund?

The Consumer Restitution Fund is a fund created pursuant to the US Fidelis bankruptcy plan to review and pay consumer claims.

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45. How much money is in the Consumer Restitution Fund?

The Consumer Restitution Fund will initially have $12,196,500 to distribute to eligible consumers who file Proofs of Claim. The actual amount to be distributed is unknown because the expense of administering the fund will be deducted from this amount.

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46. Who is overseeing the Consumer Restitution Fund?

The Consumer Restitution Fund will be overseen by a Consumer Fund Advisory Committee, which is comprised of the Attorney General (or his/her designee) of at least three states Consumer Resolution. A large, national company named GCG, Inc. will act as claims administrator and administer the Consumer Restitution Fund under direction of the Consumer Fund Advisory Committee. GCG, Inc. is regularly engaged to perform such a role in bankruptcy cases and in class actions.

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X. WHAT IS THE PLAN OF LIQUIDATION?

47. What is the US Fidelis bankruptcy case about?

US Fidelis filed for bankruptcy in early 2010. Thereafter, the management and executives of the company ended their management of the company and a restructuring company was brought into manage the wind down of the company. The Creditors Committee, a committee composed of creditors holding the largest claims against US Fidelis, was appointed by the U.S. Trustee to oversee the bankruptcy proceedings and pursue the interests of all creditors. The new management has been working under the supervision of the United States Bankruptcy Court and has sold, recovered or filed lawsuits to recover the company’s assets.

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48. What is the “Plan” that keeps being mentioned?

Under applicable bankruptcy law, a company in bankruptcy must file either a Plan of Reorganization or a Plan of Liquidation that is approved by the Bankruptcy Judge, after creditors have been given an opportunity to review the Plan and vote on it. A “Plan of Liquidation” is essentially a roadmap of how the remaining assets of the company will be divided among all of its creditors (including consumers).

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49. What type of Plan did US Fidelis file?

US Fidelis filed a Plan of Liquidation, which you can download at no charge and review. The Plan of Liquidation is available on this website at First Amended Plan of Liquidation. Accompanying the Plan of Liquidation is another document called a “Disclosure Statement,” which you may also download free of charge at First Amended Master Disclosure Statement. The Disclosure Statement explains the Plan of Liquidation and is written to provide information to creditors to assist them in understanding the Plan and any alternatives.

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50. Does the Plan say if and how I will be paid?

Yes, the Plan of Liquidation sets out how all creditors will be paid. Because US Fidelis had so many customers (approximately 656,000), it would be impractical for the Bankruptcy Court to deal with each person and the costs involved in doing so would exhaust the money available to be distributed to anyone. For that reason, the Plan of Liquidation creates a Consumer Restitution Fund that will pay consumer claims based upon the nature of the claim. (For more information, see the sections entitled, What is a Claim (Right to Payment)?; Am I Eligible for Payment?; and How Do I File My Proof of Claim?).

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51. Who is looking out for consumer interests in this Plan?

Soon after US Fidelis filed bankruptcy, a dozen state Attorneys General sued the company. These state Attorneys General have been actively following the bankruptcy case and have had significant input into the Plan of Liquidation in order to protect consumers.

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52. What are the alternatives to this Plan?

This Plan of Liquidation was proposed after extensive negotiations between all the major parties in the bankruptcy case (including some of the state Attorneys General). If this Plan of Liquidation is not approved by the bankruptcy court, the case may convert to Chapter 7 and a Chapter 7 Trustee would be appointed to pursue the pending litigation among all the parties’ rights to the existing funds. As set out in the Disclosure Statement at Section VII (c) (Best Interest of Holders of Claims), a continuation of any litigation will be extremely expensive and will severely deplete funds that could otherwise be paid to all creditors (including consumers). In addition, it is anticipated that payments to creditors would be delayed at least a year while the litigation proceeds.

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53. Why is the Plan giving “releases” to certain individuals and entities?

In exchange for payments made to the Consumer Restitution Fund, the Attorneys General and consumers are giving up the right to sue, called a “release,” certain individuals and companies under the Plan of Liquidation. As these individuals and entities are funding the Consumer Restitution Fund, settlement would not have been possible without these releases being part of the bargain. These individuals and entities are being released from many civil claims that arose prior to the anticipated confirmation of the Plan of Liquidation as well as to any civil claims arising from or related to the acts of US Fidelis in marketing, selling, entering into and refunding the contracts.

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XI. VOTING ON THE PLAN?

54. Do I have to cast a ballot for or against the Plan?

No. You do not need to cast a ballot in order to be eligible to receive a distribution from the Consumer Restitution Fund. You can cast a ballot if you so choose.

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55. Where can I locate the ballot form and instructions so that I can vote?

You may click on Consumer Ballot on this website to download the ballot and instructions.

Ballots need to be submitted in one of the following ways (i) by regular mail to US Fidelis Case Administration, c/o GCG, P.O. Box 9865, Dublin, OH 43017-5765; (ii) by overnight or hand delivery to US Fidelis Case Administration, c/o GCG, 5151 Blazer Parkway, Suite A, Dublin, OH 43017; or (iii) by fax to (614) 289-5433. Regardless of the method of delivery, the completed Ballot must be received by no later than July 9, 2012 at 4:00 p.m. (Central Time).

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XII. CONTACT US

56. Who can I contact if I have questions?

You may call the US Fidelis Consumer Hotline toll free at 1-877-691-8477 with any questions.

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