News 12 at 6 O'Clock, August 27, 2009.

AUGUSTA -- Marguerite Creekmore bought an after market extended warranty on her Dodge Caravan through U.S. Fidelis.

When she had transmission problems months later, she knew she was covered. Then an inspector came to check on the van.

"They told me that I put the vehicle in the driveway and let it sit there until (the warranty) was eligible and had it towed in to get it fixed," Creekmore says.

She says company reps told her she was trying to cheat them through normal wear and tear on the transmission. She disagreed, pointing out that just two weeks earlier she made a family trip to Atlanta.

The mechanic she brought it to, Performance Plus Transmissions, agrees.

"In the fine writing somewhere, they'll have that in there [that anything determined to be a pre-existing problem won't be covered]," says mechanic Mike Kent. "All it is, is taking advantage of people."

Kent says he wants nothing to do with after market extended warranty companies.

"What they're doing is charging an enormous amount for a warranty and people have them from 30 days to two years, but when they make claims, they say it's an ongoing condition and they refuse the claim."

Marguerite's warranty was actually held by Tier One Warranty -- a different company. U.S. Fidelis simply acts as the broker.

But according to the Better Business Bureau, she's not the only one that has issues with U.S. Fidelis. They've given the company an "F" rating due to more than 1,100 complaints and government action against the company, among other reasons.

There's a class action lawsuit in Missouri against U.S. Fidelis, and 40 U.S. Attornies General are conducting an investigation in the entire after market extended warranty industy. The BBB says U.S. Fidelis is trying to settle the investigation now.

U.S. Fidelis says of the litigation: "We look forward to working with regulators across the country to make sure everyone in the industry lives up to the standards we have extablished."

Says Gigi Turner, of the BBB: "The information hasn't been given to them by the company letting them know exactly what they're purchasing."

"It is tough to read," says Creekmore, of the contract with U.S. Fidelis. "It's almost like you need to be a lawyer. But they said they cover all major parts of an engine."

U.S. Fidelis further defended its record. They say they work to resolve complaints, are dedicated to questions and concerns, and try to help customers understand what they're buying.

Nearly all the complaints to the BBB have been resolved. But many of those are resolved administratively, meaning the customer didn't accept the company's offer of resolution.

A Tier One Warrant spokeswoman said they were not interested in commenting for this story.