By Brigette Honaker  |  September 5, 2019

Category: Insurance

american home shieldConsumers 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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335 thoughts onFiling an American Home Shield Class Action? What You Need to Know

  1. Kila Maria Brooks says:

    I jave spent a great deal of money for services on the same part. The way they warranty companies work. If the contractor test the appliance. Knowing it more then one problem he just fix one so you can call the warranty company back and we pay an deductible. I paid for services waited so long to get the part I order the part and installed myself which AHS should have given me my money back. They refused to stand by their words and order a new microwave.

  2. Joann says:

    I totally understand.
    I had a water lick in my bathroom.They sent 3 guys that look very scary to my home.That did not show me any I.D they came in they cannot find the link.. Said they leave 3 weeks later.They send another technician he finds a leak. He Leaves guys up to the store and buy boats and for the toilet.. He cut the boats off.He put some worship on then he go..after he left my Toilet add water.Just flooding out all over the floor.. I cannot get the water to go off.To the main water Shut off is out in the yard throwing it at feet deep… I had nobody to come out and shut my water off.So by this mu hole bath room Flooded with water going into my hallway. Carpet, which is now worked my whole bathroom and toilet. Everything is destroyed. I have to have a new 4 new installation new U. SB board new tile hardware 4 is what was down. And I have to have a new. A new toilet.. I got a man to come out here and fix it temporarily… But now I have to have a new toilet.New installation.My choice is fixed temporarily so I don’t get my children taken out of my home for not having a pleasurable toilet.Properly but late say refuse to help me.. No it february my dishwasher went out.. Now my dish washer has went out.. I reported this in February they brought me one out. On the fourth of june they were supposed to install it and remove the old one.. The guy was very vocal, very mean.He said he wasn’t electrician Annie wasn’t a plumber.. So now I have a new dishwasher sitting on my front porch I had the inside dish worship the bottoms Insulation in the metal rods hanging out I am a older woman that has very bad I am raising 2 special need kids. Now this is what happe. Now .. They offered to give me a $125 to hire a plumber and electrician.To put in the dishwasher.No we all know that that is not gonna install a dishwasher for a hundred and twenty five dollars… So now I have a destroyed bathroom new flooring Is needed a new toilet is needed.. Now I had meadow at the bottom of my dishwasher and installation That is very dangerous to me and my children I had tripped over the dishwasher meadow hanging open.. I am ashamed to say that I ever For twenty years , I had it at my Before I was ever divorced so I went back to it.. They are very Unprofessional, and I do not have the money to fix it.
    I pray everyday because the toll is gonna get through the floor I’m gonna have snakes or something. Rats come through the bottom of the dishwasher. I live way out of the country. I have no family or no one to help. And I live on a fixed income. That’s why I haven’t American homesick and to start with. Because I had nobody to help me. I am a single mother raising 2 grand kids. Please if anybody out there can’t give me any advice to a lawyer against America.Homestead please contact me..937 217 2172…God bless

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