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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
Please add me
We have been paying for American Home Shield for our mothers house since 2011 with only one claim for a fridge which cost 75 bucks to fix. Two weeks ago the heat went out in Virginia where it was in the teens and 40s in the house. We had to call multiple times telling them it was an emergency and on day 9 they finally sent someone out. We had to buy kerosene heaters for all the rooms just to keep from freezing (she is in her 70s) The guy came out and said the system needed replaced and that he can band-aid it for $5500 but will need replaced very soon. The quote to replace the exchanger and heat pump was $12500 and had duct work needed to me new code. American Home shield said the max pay out would be $1160 due to they don’t pay for duct work modifications, freon and replacement costs. After paying them over $12000 over 11+ years this is the service we get. Bad business ethics and were very rude on the phone while we were asking for a hard copy of the reason why, would only tell us on the phone. Don’t use them, a bunch of crooks and any advice from the forum on hw to handle them would be great.
I called American home shield regarding my AC unit 4/17 when i started experiencing the problem. Not knowing that they previous unit didn’t complete the job until the AC stopped working again on the and made another request 5/20 for someone to come fix my unit. Not knowing it was a patch job until 9/30 when it was completely corrected. In the meantime because the AC repair technician is telling me its fixed, I ended up with an over 4k electric bill from this negligence and I don’t think that is right. I talked to them about my electric bills and how they kept going up every month and the only thing I was told was Ma’am thats personal business and I agree but my personal bill should have went back to normal kilowatt after the first fix. Now as a disabled veteran I had to pay the difference from after the budget bill adjustment year period.
Have a AHS policy & have owned my home for 11 months. Like everyone else came with the purchase lol. (what a relator scam) I have a washer & dryer that were left with the house & they are over 20 years old. My dryer I turned on at 7Pm to run for 30 min, I got up at 6:30 am & it was still running ugg. Washer was making a loud noise & tearing up my clothes. Contractor said he was recommending replacing due to age. I received email from AHS that they are not covered due to physical damage to the dryer timer??? What timer where is it?? Washer is not covered due to overloading. This is a 20 plus system & I overloaded by myself in 11 months… What a joke !!I am filing a claim with the insurance board…Class action yes someone needs to stop this fraud & scam!! AHS If you do not want to cover old units do not allow them on policy.. simply fix!!
In the middle of trying to get help now. Worst experience of my life
I agree, been unable to do laundry due to outlet was smoking. Fire department said not to use until replaced. I made a service call on 11/04 it is now 12/6 and Several phone calls to AHS with No service Yet :(
Please add me, the contractor they sent destroyed my home over simple plumbing issue
I purchased my home July, 2018. I purchased an American Home Shield plan later that year. Beginning after the purchase the Heat and Air system begin to fail. AHS sent numerous repair companies. They all told me it could not be repaired. This continued
through April, 2020. On May 14, 2020, I paid $16,150.00 to replace my full system. My money paid to AHS was wasted.
Their false advertising says they fix it or they replace it.
This company Used to be good 7 years ago, but the last two years they are nothing but a fraudulent, corrupt, bullshit company. I paid 67 per month for six years, when my fiber optic faucet fell out and was leaking water on electric wires. They said it would be escalated! They NEVER found a contractor, ever. They lied on every call that my issue was covered. Every call I asked for them to send me a copy of my contract. They never did! I finally got ok’d to find my own plumber, then they tortured him and denied my claim, then said if he sent something it would be covered. I spent 40 hours on calls with them! They charged me 70 for a plumber that they did not get, never let me speak to a supervisor, when my claim was escalated, each person said the opposite on every call. My faucet was 1400 dollars! I finally thought I’d have a rage induced heart attack, so I tried to cancel my contract, but the number or finding the number near impossible. Finally got through to cancellation, the only time I spoke to an American, and an hour 7 minute call she just disappeared off the line. I stated I was cancelling timely, that they owed me 70 for the contractor they never found and to use that as my payoff, since they require an additional month payment to quit. I cancelled my credit card so they couldn’t gouge me anymore. Then got emails saying my payment was late. I called3-4 more times re my original cancellation, recorded calls, and they just kept denying I’d cancelled! I’d say, do you see the 1 hour 7 minute call to the cancellation Dept on this date? They’d say yes! I’d say what do you think I was doing, renewing my contract. I emailed, called, tried corporate…it is all a circle jerk roundabout that prevents you from accomplishing anything. Two months and 2k later, I had a simple faucet replacement all out of pocket.
Then out of the blue I received a check from them for 175 dollars. I refused to cash it. I want to Sue this company into the ground. They are a totally corrupt, dishonest, sham company that takes your money and refuses to hold up their end.
I just received an abandoned property notice from their parent company saying they are sending the money to the state of Oregon, but if I have questions to call a number and they’d be happy to answer, but when I call it is a recorded message by a non English speaking person, all lies, and the only way to contact them is via email.
I left a message that I planned to sue them for fraud and corruption, they did not have my permission to give the funds to Oregon, that I intentionally did not cash their check for a reason….our matter far from being concluded!
This company needs a criminal investigation for intentional consumer fraud, and mental and emotional torture, as far as I am concerned. The fact they honor nothing they offer in their contract and make it impossible to end the contract, don’t send your contract after 30 requests, don’t find anyone to come fix your problem, tell your to find your own person after stating every time that your issue is covered, then say it isn’t when you spend days finding someone, then say you didn’t cancel when you’ve spoken to four agents and cancelled and spent 40 miserable, painful hours on the phone with them. Well, they are the most corrupt in your face fraudsters I have ever encountered! American? I think not! I heard atleast three fighting roosters in the background and inquired about them with the person I spoke to 3 different times. They’d claim they record every call. Bullshit! Every word is a lie, and not sending the contract, ever after 30 requests over 2 months!
Count me in. I hate this company more than anything over 6 grand they stole from me over 6 years for nothing!
Jessica, I too am a victim of this scandalous and corrupt sham of a Home Warranty Company. I have experienced the most unprofessional treatment, lies and failure to respond and honor the written contracts. I want to file a class action lawsuit.
My side-by-side refrig in my kitchen (the freezer) has gone out 6 times. Each time AHS send someone else out. Quick to take my $ though. Refuses to re-place. Now my hardwood floors are lifting. I called AHS last evening and they refused my request for AHS to repair the water damage/floors due to their ignorance. I am so sick of getting the run around from them. Now I have to make a claim through my homeowners’ insurance. So done with AHS.
Oh, they have screwed me so bad i am ready for a nervous breakdown! My seweer line was replaced, per AHS’s Plumber and now, it they claim it’s under the slab and need to remove my oil burner and jack hammer my finished basement. Oh, and they will not cover this one. So disgusted. The time spent chasing for answers is completely unasscceptasble.
We Have Tried for 6months To Cacel Our Contract With American Home Sheild
They Sent Out Handymen Instead Of Repairmen Specializing in A/C And Heating They Destroyed Our A/C And Heating System We Had ARealA/C Company Come OuT The System Was 22 Years Old And Because Of What Yhe Handymen did We Had To Financiale The Full 5200 Replacement We Tried To Cancel Our Contract For 6 months Now They Refuse to Let Us Out Of The Contract We demanded to Speak To A American Each Time We Called After Hours Of Arguing on The Phone Each Call They Hung Up On Us
Then Today They Threatened To Send Us To Collections And Report Us To The Credit Bearu Because Last Month We Stop Payment I Tried Reaching The Tennessee Office But Was Sent To A Another Representative Outside the United States
We Don’t know what to do we Do not have the money for A Attorney Someone needs To Bring AHS Court With A Class Action lawsuit For Members trying to End Their Contracts With AHS
Why couldn’t we all get together and file a Class Action suits against them. I mean it’s not right what they are doing and folks need to be made aware of their behavior . I would be willing to pursue one.
I’m in.. they scammed me to. The issue for a cash out check is still hanging in the wind. They left me in 30 degrees weather without heat. My wife and I had no choice but to replace our ac/heating unit. They wouldn’t move forward with the repair and had to do a review of the repair on my old unit. It was a burned up transformer and some wires. All the keep doing is giving you the run around. Still one month later and no cash out check with all documents sent to them. A invoice of the total cost of the new unit and permits, and paperwork from the town I live in. They just telling me there still missing paperwork. Everything was faxed and emailed to them. I wish someone would shut that company down. Next I will write to the BBB
You would not believe the lies and shifting of blame this company does. We started in April (pd 75.00 maintenance fee)to have our A/C checked out for the summer months. First hot day in May the air did not work at all. Called back oh now we have to pay 100.00 for a work claim and then when that is paid they sent a company out to check what wrong. Paid that a company from 85+ miles came to work on it. Yes compressor bad. This started a 4 month routine of lies -stalls- blaming each other. The installer got so mad he asked me if i ever asked myself if AHS was so good why did they have to use installers from city almost two hours away.? Exactly a good point since we have several huge HVAC companies in this huge town I live in. I would gladly add anything I could to a lawsuit! I finally took the buy out which was less that half of the 5,000. Replacement!! They are scam artists with a license to steal!
I am having issues also. Every contractor around me won’t deal with ahs any longer sonjad to find a contractor 1 1/2 hrs away. Ahs had to authorize me to find my own contractor. Ahs did not like the quote so basically forced the company to say rust and hail caused my 26yr old AC to go bad. Funny thing, there isn’t a dent on my AC. But of course you cannot get anyone of importance on the phone. Only their foreign service operators who state they can only note that i want someone to call. I called the ither day, told the foreigner I wanted to cancel my service. Low and behold, I was immediately transfered to a manager that spoke perfect English. She was very apologetic and promised to get this fixed. To give them until Tuesday. We’ll she called back later that day and told us the same and refused to cancel our contract even though there is no contractor within an hour drive. So Tuesday I am hoping to the bank and cancel my auto pat, then contact attorney generals office.
We have a lot we can say about this scam of a company. First of all it’s nothing but Foreign customer service who think they can talk to you any kind of way . They never let you talk to a supervisor or anything. They had us pay $125 for one of their contract companies and I have to say these companies they have are sorry. This has been going on since August 12 the day before my dad passed and this man came in and said one thing then he said he was coming but when we called him he said that he forgot but he sounded like he was sleeping then he said he was on the way but after we hung up we got an text from Ahs saying rate the company and they hadn’t even came to the house . We called AHS And they said that the receipt said that my husband had told him not to come which was a lie. Then I told the rep that he lied and I was like he is an Ahole and it’s hot and we need someone else so we had to pay another $125 for a company to come it is now September 2 well it’s a holiday weekend so we kept calling AHS and they hadn’t gotten anything from the company so fast forward till today and after call after call AHS said that they called the company and they said it heating valve was missing but I’m like he lied cause when he left he only told us that we had a blockage that is different than what they first man said it was a coil need to be replaced. Needless to say ASH said they aren’t responsible for fixing it. Heck we don’t even know what is exactly wrong with it . It’s hot in my house and I have asthma and small children . I have other stories also.
Sue,
I am going through the same issue with my HVAC system and AHS has been extremely slow in getting a technician out to investigate the problem. I have had another serious problem with my range and it took 9 months to get a resolution which I might add was not a reasonable or fair one. I want to file a class action lawsuit.
One of the worst issues dealing with Cutomer service is in the Phillipines. The representatives not making notations! Can not understand 99% of the representatives. They say to call back.. Never happen! Talked to other reps. Minila..They just don’t understand. They have a script and stick by it.
I would love to join this. The company continues to stall. I think if you end up getting a second opinion, all hope is lost at that point. Your service will continue to be stalled, and the processing department will have your request listed as “processing -estimate” for days, months, who knows. Ultimately just to fraud you and not live up to the contract. Why do these people act like the owners of the company? If this is within the contract, it must be honored!
This has been a nightmare for me. I am trying to cancel my contract with them and they keep giving me the run around, There is no email address or mailing address to send the cancellation. They are the absolute worst. I have 5 active policies with them.
Yikes!!! 5? To me, the inability to cancel is the WORST fraud of all! They don’t even have an option number, so I called like I wanted to buy a contract! I got an English speaking person and the phone line dropped the call an hour and seven minutes in. I canceled four times with four different agents. I saved the time of the call and the date, then would they’d deny next time, I said you record everything, right? Well go listen to these four calls on these dates, and you’ll have proof! One time I asked if they were so incompetent that I’d need to fly to Tennessee and locate the call records myself! They finally admitted I’d cancelled, but the time, pain, frustration, explosive anger they caused for two months is irretrievable. I have a paralegal and law degree and I told them all the last calls they were committing consumer fraud.
Be sure and write down the date and time you called and try calling the buy a new contract line to get to cancellation. I hope that helps!