Home Warranty Class Action Lawsuit Settlement

Table of Content

• Why You Should File For Benefit Under the NCMH Compensation For Accidents Act
• Home Warranty Class Action Lawsuit Settlement
• Consumer News
• The Hitman Scam; The Extortion Scheme Out To Get You
• Start Your Own Claim in Under 10 Minutes
• John ARMSTRONG and Dan Armstrong, Plaintiffs-Appellants, v. AMERICAN HOME SHIELD CORPORATION, Defendant-Appellee.
• Recent and notable American Home Shield lawsuits:

Over the past few months, Consider The Consumer has gotten numerous complaints about the American Home Shield Corporation, an American home warranty company which administers home service contracts on major home systems and appliances. The company serves 1.4 million customers across the country and is one of the largest home warranty writers in the United States, receiving about 2.5 million service requests each year. After receiving these complaints, we looked into the company a bit, and have noticed that our readers were not the first to call out the potential American Home Shield scam. I would also like to join a class action against AHS relative to a/c fraud alone. They advertise that they will replace the unit, but do everything but live up to their advertised lures. After paying in for many years, we hate to sacrifice all that money by dropping them now...but lawsuit, yes.

We find that the “average contract cost,” as outlined in savings program one, is a function of those contracts which the Armstrongs later converted to the fixed-rate methodology. We also find that the fourth savings program does not reward recommendations to enforce warranty provisions. Moreover, the appellants' negligent misrepresentation claims are time-barred by Texas' statute of limitations, and their fraud claims are precluded by the agreements' merger clauses. In June 2011, a lawsuit was filed against American Home Shield by customers who alleged contractors were paid a bonus for improperly denying claims.

Why You Should File For Benefit Under the NCMH Compensation For Accidents Act

One such lawsuit against American Home Shield resulted in a settlement, even though the company did not admit any illegal behavior or liability in the settlement. We maintain complete transparency with the readers on our website. The company rankings on our site are independent of any marketing relationships that we may hold with a home warranty company. We may receive compensation for receiving quotes or placing advertisements. However, this does not affect a company's rankings. Companies are ranked solely on the basis of consumer reviews and ratings received from home warranty users.

My realtor purchased the policy for me when I bought a foreclosed home in CA. I turned in about 5 or 6 claims and AHS first denied every claim, often trying to use the "normal wear and tear" insuring agreement as an exclusion and other times completely misconstruing their contract language. I first tried talking to the claims people in Iowa and got nowhere. I then contested every claim to corporate and the CA Insurance Department pointing out what AHS's policy said and how their policy actually said it covered my claims. As soon as I "cc'd" the Ins Dept and corporate, they paid every claim and then non-renewed my policy. I had an advantage because I'm a retired Litigation Manager that helped draft policies for an insurance company in another state.

Home Warranty Class Action Lawsuit Settlement

AHS refuses to supply the Tech's report and says we need to get the report from B&B Allstar Electric who refuses to take our calls. Apparently, AHS denied claims that were supposed to be covered. Suing American Home Shield in small claims is a long and tough process. You have to ask nicely, fill out the right forms, bring them to court, and now you have to “serve” the company, saying you are going to sue American Home Shield. Each state has a set of forms that need to be filled out to file a claim, and sometimes counties will provide additional forms.

Episode two our garbage disposal stopped working completely. Plus they charged us tax on the copay and expected a copay for doing nothing for us. I called AHS about this and they said they would refund the copay.....they never did even after multiple phone calls to them. Now I replaced the switch that ran the disposal and still it did not work. Only after replacing the disposal did the disposal work. I am not saying that AHS is satans spawn of business because they did do some good work for us but 2 episodes out of 3 claims not good odds.

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Same thing with the Freon they wanted to charge me for twice the price per pound and twice the amount of the needed Freon. AHS did not fix the AC unit after 3yrs of countless $100 service fees. I called a local AC unit repair company, the tech was amazing. He said the unit ducts had cracks in them so the unit had to work extra hard to cool the house making the unit overheat. The lawsuit alleged that American Home Shield paid kickbacks to realty brokerage agencies and agents in violation of the Real Estate Settlement Procedures Act, which prohibits any payment for referrals of settlement services.

FAHW said that it is the rodent damage so it is not covered. We asked FAHW several times to send us the evidence that shows the damage is indeed caused by the rodent, but the company refused. The only way to get these scumbags to pay up for a replacement (why else would you play $55+ per month??) is to sue them. There has already been a class action levied against them in the past. We have a high-end Maytag washing machine that recently started to make some noises when spinning at high speed.

They refuse to put in a new unit and just would rather give me the run around. They offered me $200 to get a temporary AC unit until they can "fix it" or they MAY reimburse me if I have someone else to fix it. Why would I pay someone else when I pay AHS monthly and the $75 to have someone come out.

We called AHS but service was denied due to "bearing defec caused by washing machine being overloaded". We have been using washing machines for over 50 years and we have never been told we stuff the drum with too much laundry. A 15 year-old machine is bound to have some wear and tear and the technicians never inspected our washing machine. They made the claim based on the problem we told them.

Further follow up with AirNow resulted in me contacting AHS since AirNow said they had not heard anything. AHS said AirNow reported no issue with the system and recommended the owner install a dehumidifier. Had they bothered to go under the house on the second visit AirNow would have found, not only a dehumidifier, but an air-mover as well. After much effort to get a second provider Greenway was assigned. They documented that the first provider had not completed the job and the owner did have a dehumidifier and an air-mover installed. In about 3 weeks we started receiving collection calls for the $81.00 fee and last week I received an invoice for over $160 for 2 months charges unpaid.

I've been an AHS customer for 11 years, and have spoken to my attorney. They have copies of each year's warranty and are looking into other class actions being filed. If anyone has one going, please post here, and we'll work together! Customers are not allowed (AHS RULE?) to get a second cost on "add-ons". But AHS sure does get multiple contractors to bid on THEIR end of the work.

I fought with them and the appliance company for my dryer for over a month. Finally when one of the reps kicked the complaint up to corporate did I get results. Now I am going through the same thing with my washer. They are passing the buck back and forth and in the meantime I am waiting for a complete breakdown and expect one of these days for standing water where I will have to wring my clothes out by hand. Nobody offered to kick this matter up to corporate this time.

I implored the CA Ins Dept to investigate what I believe is their fraudulent claims practices, but it doesn't appear they have. I'm confident if my past company had handled claims the way AHS does we would have been found in bad faith in that state. I've placed my redacted documents/letters on Google drive for any help they might give. We've been trying to get our AC repaired for days and have been on the phone with AHS arguing for countless hours trying to get someone to come fix our AC. We live in Houston Tx and the temperature was 97 with humidity which felt like well over 100.