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Consumers may be able to file an American Home Shield class action lawsuit if they have experienced financial harm at the hands of the home warranty company.
American Home Shield: Home Warranty Company or Scam?
American Home Shield Corporation is a home warranty company that provides support for the repair and replacement of major appliances.
If consumers pay a monthly payment between $22 and $42, American Home Shield finds contractors to repair appliances or replace them.
Although this service sounds idealistic, American Home Shield allegedly fails to live up to their promises.
Some consumers have reported issued with the independent contractors hired by American Home Shield. Consumers allegedly have no say in who responds to their service request, meaning that the contractors may not be as skilled or experienced as homeowners expect.
Other customers have reported that the contractors and the home warranty company may get into disagreements – causing delays in repair services.
Homeowners claim that their failed appliances are replaced with cheap alternatives. Regardless of how nice their appliance is before replacement, consumers allegedly have their appliances replaced with low quality options that only barely have the same features as the old product.
American Home Shield customers have left poor reviews on countless review sites.
American Home Shield Class Action Allegations
American Home Shield has already faced legal action regarding their claims. Plaintiff Richard J. Kohl filed an American Home Shield class action lawsuit in California state court in 2012.
Kohl claimed that, when he purchased his home, he was charged a fee of $435 for one year of American Home Shield warranty services which were recommended by his real estate agent. Although Kohl thought that the fee was simply payment for the home warranty service, some of the payment allegedly went to his real estate agent as a referral kickback.
The American Home Shield class action claimed that the home warranty company violated California’s Real Estate Settlement Procedures Act (RESPA) which prohibits kickback payments as a part of real estate dealings.
Filing an American Home Shield Class Action Lawsuit
Due to an arbitration clause in American Home Shield contracts, it may be difficult for consumers to take legal action against the home warranty company. Arbitration clauses force parties to settle disputes outside of court. However, consumers may be able to take legal action with the help of an experienced lawyer.
If you qualify to bring an American Home Shield class action, you will need an attorney to help you navigate this process with minimize stress. Attorneys are experienced in navigating the strict rules of court and can help you dot your i’s and cross your t’s to ensure that your claim is not dismissed on a technicality.
Did you purchase an American Home Shield warranty? What did you think? Leave a comment below and let us know.
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315 thoughts onFiling an American Home Shield Class Action? What You Need to Know
We need a new furnace ours is from 1985 American Homeshild will not cover the “ modifications” needed to install the new system. Which is basically installing a new unit replacing an almost 40 year old unit. We have had them since we bought the house in 2009. What use was my monthly payment for? Basically I have wasted almost $10,000 over these years for zero help! If anyone hears of a class action suit against them in PA let me know.
Can you do a class action lawsuit on First Premier Home Warranty. They automatically deny all claims. Just found out they have no business license and were ordered by CA Dept of Insurance to stop selling warranties. This was in 10/2021. We were sold ours in 7/2023.
American Home Shield is giving us the runaround about fixing our heat pump. They sent a company in August that said we had a leak in the Freon system. They drained the system, installed a new compressor and now 5 months later the system is low 5 lbs of Freon. They do not pay for Freon and after spending $1200 on Freon in August they now want me to purchase 5 more lbs at $100 per pound. Apparently the leak was never fixed since it is a closed system unless there is a leak. In order to determine whether there is a leak the system must be drained and it will cost me another $1200 to refill it. The original AC company
does not warranty their work and put it back on AHS. Can you help me with this ridiculous situation?
I had purchased American Home Shield and had trouble cancelling it. I have proof of purchase.