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The Arizona attorney general’s office has reached a $1.75 million settlement with Landmark Home Warranty that will benefit up to 26,000 consumers.
The settlement resolves claims about Landmark’s alleged misrepresentation about its “expedited services” policy between 2017 and 2019, according to an announcement from Arizona Attorney General Mark Brnovich.
Arizonans who purchased home warranties from Landmark Home Warranty will be eligible to receive a share of $1 million; $750,000 of the settlement will go to pay civil penalties and prevent the company from advertising expedited services in the state for the next five years.
Under the terms of the settlement, each consumer who didn’t receive timely air conditioning services and incurred expenses may be eligible for a reimbursement of up to $1,000.
All Landmark Home Warranty customers in Arizona from 2017 to 2019 will receive a payment of at least $25.
In Landmark Home Warranty’s contracts, the company had promised it would “make reasonable efforts to expedite service within 24 hours” when a customer’s air conditioner failed in extreme temperatures, according to Brnovich.
However, between 2017 and 2019, Landmark allegedly defined “extreme temperatures” in such a way that it was impossible for customers to meet the standard.
Landmark Home Warranty allegedly instructed its employees that “extreme temperatures” in Arizona only existed if the low temperature was at least 100 degrees or if the temperature had been over 100 degrees for 24 consecutive hours, according to Brnovich.
Not only has neither condition ever been recorded in Arizona, but this standard differed from the company’s policy in other states, the attorney general argued.
Landmark’s records indicate in the summers of 2018 and 2019, about half the company’s customers in Arizona who requested air conditioning service had to wait more than a week for a technician selected by the company to examine the unit, according Brnovich’s lawsuit.
Landmark Home Warranty was formally accused of violating Arizona’s Consumer Fraud Act.
“When home warranty companies make promises to consumers, they better deliver, especially when it comes to air conditioning repairs during the Arizona summer,” Brnovich said in announcing the settlement. “Our office will continue to pursue companies who engage in these types of practices.”
Do you live in Arizona and have a home warranty through Landmark? Have you had to wait on the company to service your air conditioner? Tell us about your experience in the comments below.
The Landmark Home Warranty Lawsuit is State of Arizona v. Landmark Home Warranty LLC, Case No. CV2021-001326, in the Superior Court of the State of Arizona in and for the County of Maricopa.
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