US Fidelis has used the BMW name and trademark to confuse consumers into believing that the Wentzville broker of auto-service contracts is affiliated with the German automaker, according to federal suit that BMW of North America filed recently in New Jersey.

The automaker contends that US Fidelis sends BMW owners direct-mail solicitations that include misleading language, such as "BMW Notification," "Dealer Services" and "Dealer Warranty Division." The letters tell consumers that their factory-warranty coverage "has expired or may be expiring soon" — a sales technique that is common in the service-contract industry.

The suit alleges US Fidelis violated federal laws against trademark infringement, unfair competition and false advertising. It seeks a court order prohibiting US Fidelis from using BMW trademarks; as well as a monetary award that includes all profits US Fidelis generated from solicitations to BMW owners and punitive damages.

BMW says in the suit, which was filed July 22, that several customers complained to BMW about the solicitations, with some accusing the automaker of improperly giving personal information about customers to US Fidelis.

In a prepared statement, US Fidelis Chief Executive Chris Riley declined to respond to the allegations. "What we can tell you is that we're confident that this situation will be resolved to the satisfaction of all parties," Riley said in the statement.

The federal suit is similar to one that Subaru of America filed in January against National Auto Warranty Services, which that month changed its name to US Fidelis. In a settlement filed on June 15, US Fidelis agreed it would pay the automaker $30,000, stop issuing "Subaru Notification" solicitations and promise not to use any Subaru trademarks or product names.

The BMW suit adds to mounting legal troubles for US Fidelis, which markets itself as the nation's leading seller of extended service contracts. The company is the target of several class-action lawsuits, and at least 40 state attorneys general are investigating the company. Investigators from the Federal Trade Commission, FBI and Postal Inspection Service have interviewed at least one former executive at the company.

The Missouri Department of Insurance, Financial Institutions and Professional Registration sued the company in April after the firms owners — brothers Darain and Cory Atkinson — failed to respond to subpoenas demanding they appear for questioning at the insurance department in Jefferson City. A department spokesman said Tuesday that US Fidelis is now cooperating with the inquiry.