Brigette Honaker  |  September 5, 2019

Category: Insurance

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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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315 thoughts onFiling an American Home Shield Class Action? What You Need to Know

  1. Robert Erickson says:

    Just purchased our house that was built in 2000, A/C furnace in the attic started leaking and has caused damage. I contacted AHS and they sent a company out who stated the furnace was altered and it’s not normal wear and tear and that voided the warranty. I rebuttal and they sent another company out here they say it’s wear and tear and requested parts are on order to fix. 1 month later after both me and AHS have tried numerous of times to get status update. AHS changed the status to complete and informed me the ac unit isn’t covered

  2. Karen Brand…. says:

    Unresolved
    02 June 2022. Rental property without dishwasher
    -Model discontinued AHS currently playing the “Mary-Go-Round” and “Roller Coster Ride”.
    -Submitted: Online complaint, letter’s, email’s and phone several’s (Attorney General Office) non-response.

    -Letter drafted (Spotlight)
    In response, to your official response dated December 16, 2020.
    I would like to restate the core tenets of my original complaint which had specific time and responses thereto my complaint. The nature of my complaint took on a dual nature which are restated below:
    Non-Technical Nature of Complaint:

    The said household consists of three individuals with varying degrees of health challenges. The health of these individuals were compromised during this time of COVID-19 as the contractor and team did not observe COVID-19 protocols. This is a particularly serious issue. Workmen entering my house without masks, and with their work boots on and with no sign of sanitizing their hands and feet. With a disabled child in the house, this causes untold emotional tension on myself as I have become overly concerned about the health of my child.
    There was no work schedule by the contractor. They would simply show up when they felt like and depart in the same manner, without due regards for my time. The attitude was very disrespectful and unprofessional.
    The contractor was even in breach of AHS Special Dispatch Notice in terms of COVID-19 mitigation strategies.
    Technical Issues:

    The HVAC malfunctioned and the attendant complaint as per my contract agreement.
    For over 30 days there was no engine and HVAC was blowing hot air because z… had removed damper motors, without immediate replacement
    At this point HVAC can further malfunction and this is a fundamental concern of mine.
    AHS Response
    REQUESTING SERVICE 1. AHS must be notified as soon as the malfunction is discovered and prior to expiration of the contract term. (Refer to your Contract Agreement pages for details on how to request service.) A careful perusal of your records will certainly indicate that i have made a timely a complaint about the said matter to your offices.
    As per one of your latest correspondences, the point was made that “AHS will not reimburse for services performed without its prior approval.” This particular clause or provision does not apply in this particular situation. This particular clause assumes that the complainant has circumvent and bypass your internal processes. This is not the case with me.
    General Limitations of Liability : The legality of this will be tested in a court of law. There is no way AHS can absolve itself from the liability of a third party that it has hired to act on its behalf. It should be remembered that a third party contractor takes instruction from AHS and not me as a complainant. There is no contractual obligation between myself and a third party contractor and in the case A… As a matter of fact– there is a contradiction between the sections Requesting Services and General Limitations of Liability. If AHS does not accept liability incurred by its own contractors, why is it incumbent on the complaint then to notify AHS as soon as there is a malfunctioning of items– such as the HVAC in my case?
    With respect the totality of the complaint that you have on record, I would like to submit again that AHS has not dealt with the emotional distraught that i have had to endure based on the unprofessional conduct and lack of urgency in dealing with a legitimate malfunctioning HVAC. The cost of my emotional distraught is difficult to quantify, however, AHS needs to recognize and take steps to compensate me for the undue hardship I have had to endure.
    -Know one to hold them responsible, consequences, or liability for their actions not a living soul. I feel violated by AHS damages to my ceiling, wall, flooring and the affect on my overall health.

    Sincerely Yours
    Karen B.

    1. Sanita Kelley says:

      My Air Conditioner went down on 7/29/22 and I initiated a service request for repair and a compressor was supposed to ordered but no one knows where the part is located?!! The technician states he doesn’t have it and the vendor ARCO states they mailed it to the technician! Needless to say as 8/16 my Air Conditioner hasn’t been fixed and my house is 98-99 degrees in temperature! Of this Southern in August where temperatures can rise to 120 degrees! I join your lawsuit!!

    2. Peytaylor says:

      Spot on. I had an elderly tenant without hot water for over a month because AHS kept sending out the same inept technician. I spent countless hours on the phone with AHS advising them to send out another tech. They continued to refuse. Finally I gave up and purchased another WH and had someone else to come out and install it. AHS is a rip off. Now I’m trying to cancel my policy with them and they are trying to bully me by saying they will take me to collection. They are the absolute worst. Does someone have a physical address or email I can send my cancellation notice to.

  3. K & M says:

    I will gladly join a class action​ suit. I have multiple complaints!!!

    1. Johnny o says:

      I’ve been with ahs for 4 yrs. My boiler went out my ac went out. And I had to pay out of my own pocket. I’ve been without an ac for 3 weeks. I have a child who has no use of his arm and leg. I had to buy a window unit. Ahs never gave me an answer until I called to cancel.

    2. Peytaylor says:

      Me too

    3. Vincent Ortega says:

      I am on the same boat right now. I first contacted AHS first week of July, 2022. They sent a contractor, I paid the $125 and said my ac needed to be replaced. This is September 16, 2022 and every time I call them they said parts still haven’t arrive and blame on the pandemic. I’ve calling the contractor and they said the same thing! At this point, I am very confuse and not sure what route to take. But I will be more then happy to join any sue against this mediocre insurance.

  4. Jane S Ciucevich says:

    We’ve been paying American Home Shield for 9 years. Our water heater went out last Wednesday. AHS assigned a local plumber. They showed up the following day 4 hours late for the appointment. No ID, unmarked vehicle, and shabby. Our water heater is just off the garage so we did not have to let him in the house.We never heard back from the plumbing company, and after 5 days of heating water to clean and bathe, we purchased a new water heater and had it installed by a reputable plumbing company. 17 calls in to AHS and nothing is yet resolved. We always get a different representative, some are out of country. No one seems to know what to do except stall. We have canceled our service with AHS but would definitely join in on a class action suit.

    1. Lynn Lynn says:

      What did you do to cancel. Do you have an email address?? Thx.

  5. Norman Hamra says:

    We had AHS coverage on our home in Anthem, AZ from 2005 – 2015. When the AC went out in the casita, they refused to replace it stating that the connected casita was not part of our home. This refusal cost us $4,000 to fix. This company is a total fraud and they keep on ripping off consumers. Will never recommend this bogus company.

  6. April Milliner says:

    I am also interested in filling a lawsuit against AHS. Have no air-condition for almost 2 months now with a 9 month old baby. 5 NO show appts and NO help fro AHS to get this done. They AHS and contractor both only promise every week to come by Thursday and then NO one showed up for 5 times now.

  7. Todd says:

    My Florida AC quit running in the middle of July. I submitted a service request and paid my $100 deductible. I received a confirmation with HVAC repair contractor listed. The next morning I called the number listed only to go to a sketchy voicemail. I researched the company and was shocked by all the negative reviews. Also this company was over 50 miles from my home. Needing a quick response I called AHS to see if there was a vendor closer to my location, they replied there is one other company but I would have to go on a waiting list for service. Remember- I’m in Florida mid July…- I asked to speak with a supervisor only to sit on hold, until the rep came back on line and said they would send concern to the de-escalation dept and I should hear back in 24-48 hours. At that point I canceled my service request and contacted a company in my area who came out next day. The comments in these other reviews are correct. AHS is defrauding the public and I would be interested in participating in any Class Action Suit against this shady company.

    1. Les says:

      I too have been burned by AHS. AC went out May 16th, 1st repair was replaced condenser unit, although the technician told them it AND the evap coils were leaking freon. After paying $580 plus the call out fee, it was installed June 21, and it died 36 hours after install. Contacted AHS again, they sent another Company. He reported same, that evap coils were leaking. So then they said I’d have to pay another $1500 for “modifications “. Got in touch with their “de escalations ” depth, and now I’m waiting on a 3rd vendor to get out here! 2 months of summer heat, and the only reason I’m not dead is because I’ve purchased a portable AC, and 2 box fans, and been monitoring the temperature so I can open and close windows for relief from the heat! The latest vendor is supposed to be here this afternoon, will see how long it takes to get screwed around this time! I’m all in for legal action with these dirt bags!

    2. Venita Walker says:

      I would like to do the same, the company is a sham.

  8. Elizabeth Angelle says:

    My washing machine broke down in January. AHS sent out a company who said they would have to order a part. Waiting for the part to arrive. Finally it came in. The technician(if that’s what you want to call him) came back and installed the part. Washer still didn’t work. Back to ordering another part. In the meantime I called AHS to ask if I could get another company to come. The answer was no.Basically you started with them now you’re stuck with them.
    Second part arrived and got installed,guess what still not working. This time he called AHS and said it could not be fixed and it would have to be replaced. It took months of many phone calls,emails and research to find someone in authority. I finally found the name and email of the CEO of the parent company and wrote to him.
    I was contacted by an agent in AHS who said they could not find a model like the one I had so they were going to give me $600 toward a new machine. There is no way $600 would pay for a machine comparable to mine but I had to accept it.
    By the end of July I finally had a new washing machine. January to July!
    I told AHS to cancel my contract and was told I could not so I called my bank and asked them to issue me a new card and number and explained to them why.
    There are hundreds of complaints on Facebook and several groups.
    This company needs a class action suit filed against them.

    1. Peytaylor says:

      I was told I could not cancel my contract also. They said if I don’t pay they will send me to collections. I am keeping documentation about the lousy service and the sham of a company. I have spent so many hours on the phone trying to get them to send out someone reliable. Finally wound up purchasing a HW heater myself and having it installed. We need to keep reporting these issues so others can see they are not alone.

  9. Jadeh says:

    My ac is out. It stays hit down here in the south. It 3 tech to all day the same thing. It needed an evaporator coil. The problem with that is my unit is R22 and not 410a so the Freon is different. They kept saying they couldn’t find the correct coil The thing is I found it through ADP the only thing they had to do was to change out the piston for the 410a to a R22. Then Freon would match no more issues. It made AHS mad that I actually was doing their job for them!! This went on for over a month. Then they tell me the only thing they could do was to give me a cash out. Which mean I had to pay for it out of my pocket!! I said nope!! I argued with CSR the had a de-escalation dept person call me. When they all I could hear was their roosters. Then it got quiet I kept hello for around 10 minutes and still nothing! So that was it I had enough!! I called cs back and canceled my contract then they wanted me to pay for canceling! Huh yeah right!! I said I don’t think so. This I’m not paying they have took enough from me! Beware AHS are a bunch of crooked thieves they will try to drain you pocket book and do it witn a smartie mouthie grin!!

    1. PARTNE A DAUGHERTY says:

      File a complaint with your attorney General. It works.

      What I learned about AHs and its contract with HVAC repair companies is that AHS put in the contract a $1,000 limit on repairs that it will pay to the contractor (including any part the contractor supplies. Not sure about AHS supplied parts) to repair our HVAC units. Anything beyond that, the contractor has to pay for. Naturally, the contractor will never pay the costs for our repairs. Interestingly, that maximum cost limit is not in our AHS contracts.

  10. Michelle DaBell says:

    I have been with AHS for nearly 17 years for two properties. There have been times that this company has been successful in resolving issues; However, having their customer service in another country in order to obtain cheap labor is extremely tiresome. They are trained like robots from a script. They are obviously working telework in some remote area of the third world county. They can’t access any supervisors and speak very very poor English and keep wrongly repeating what I am asking for. The most distressing situations that I have now experienced at both properties is when a warranteed item is coming to the end of its life and need replacing, Firstly, the fridge died and left my tenant and her newborn without one for months while I had to fight tooth and nail to get it replaced. However, I eventually did get one. They want you to give up. Last time my AC is over30 years old. This was the main reason I purchased this warrantee. However, the contractors won’t say it needs replacing and charging you for constant “modifications” to keep it running. My last bill was $1200.00, I cancelled it after this for my rental property. Oh did I mention that was too a nightmare. Cooperate insisted they will close it. Several months later I was still been charged and to get connected to the department that closes your account is a nightmare because they barely speak English …. Now my heating system is failing. Although it is again running and I am glad my home is warm. It now sounds like a helicopter has landed and I can’t sleep in my bedroom because of the noise. I have had two contractors and although they agree it is past its live expectency they won’t replace it. The first person said he could hear the noise but couldn’t figure out what its from. My bathroom ceiling has a huge stain on it coming from the vent. The pan is rusted from some unknown leak and a rusted mark is shown down the side indicating a leak. However, the second company says they can’t hear the noise on the recording I made. It was them whom told me to record it as he could diagnose it from the noise. Now he says he couldn’t hear the noise. i sent the recording to coorperate and they will not help. Substandard contractors. Both companies have offered to replace it as its past its expected life spam but neither will request replacement. They will keep fixing it even if it isn’t cost effective. It is like their contractors are in on the scam.

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