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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
Add me because dishwasher still broken and no follow up from home owners warranty or appliance repair place that always gets the call for service.
Add me it took 3 times before they would replace my Heat and air system.But they did not pay but 728.00 on my new unit that cost me out of pocket 4,250.00 for a new unit.
Add. They doent want to test or find the leak before recharging the freon in my heat pump. I have a son with Cystic Fibrosis and am not okay with just patching the problem. I have already beeb told that while it is best for my family they will not approve the leak test or an upgrade. My house has been 90 degrees and im not okay with the idea od freon leaking in my house putting my families health at risk
I’m currently insured with AHS.
Add me to the class action. A/C still not working properly, I have been waiting for over 3 months now.
Add me to American Home Shield suit & send names of local Atty’s to minimize distress for autoimmune disease requirement. I paid more to use warranty than Realtor paid for warranty to sweeten sale of home to me! That seems WRONG & NEGLIGENT, NO?
Was in OB/GYN 30YRS so I know about negligence & malpractice! Terrible to others!!
Add me please. I still have a hole in my kitchen ceiling. They replaced my hood but would not install it. It’s been in a box for years. They refused to fix or replace built in microwave and replaced with a cheap countertop microwave.
Sorry to hear about your hole in kitchen! But I know what you’re describing. Mine is same & that would stress me out very much. Good Luck & praying Top Class Actions r genuine folks!
I’m currently insured with American Home Shield.
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