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. Doug Quillen says:

    Had the AHS warranty and our AC went out in the middle of summer last year. We get Temps over 100 degrees. My poor wife sat on hold for over 2 hours try to talk to someone. They promised to have a contractor come out and look at it. Crickets! Wife spent numerous hours again on hold. There was not a contractor here in this area that would work with these crooks. They attempted to hire someone from a neighbor state. Finally after another long wait on hold, they advised us to contact our own contractor and have them call AHS. The contractor also sat on hold for several hours and they told him he was too expensive. Now they do not answer the phone nor return voicemail. I paid 7000 to have the AC replaced. AHC is nothing but a scam! CROOKS

  2. Lindsley A Hubbard says:

    Mid March of this year I contacted AHS because my furnace kept turning on but shutting off. By time a tech came out the furnace would not turn on at all. The tech relaxed heating said i needed a maintenance and to replace igniter. Igniter was covered but maintenance wasnt and relaxed wanted almost $400 for a routine maintenance. I dealt with this company in past and knew they had a habit of overcharging and knew I had never paid that much so I called around. Everyone was about $100 some less. I told them well I will do my regular maintenance with another company and you all just fix whats covered. They refused unless I did maintenance with them and I refused to overpay for maintenance so they offered me $134 a cash offer for part. I hired another tech Nexgen. He said the unit is leaking oil badly and was on its last leg but new it was cold and needed heat so agreed to fix what was sugeested. I paid $300 for part and maintenance and he did a full report took pics and video. It was short lived as even with new igniter a day later the unit was back to turning on then shutting heat off. I called Nexgen they said its because I need a new unit. Its not the igniter but igniter going bad because unit keeps misfiring. I went back to warranty company AHS to let them know that issue was not fix it turns on again with new igniter but shuts right back off heat. They agrred to send tech for 2nd opinion. But refused to reimburse me for part although I paid for igniter. PLATINUM REPAIR then came out they replace Control board, Another time the replaced gas valve, and they replaced flame sensor. They came out 5 time total. None of the parts ever fixed problems. They then told me I needed a new unit. He took measurements. AHS then called said platinum could not diagnose unit and I needed a 2nd opinion. What AHS did not realize is PLATINUM also sends me a copy of receit every time they did work saying what they did and their suggestion. I asked ahs why their report read different than mine. They said they got nothing saying to replace unit and that they were told unit is fixable. I have the report and it said nothing of that. So I realized they might be trying to avoid paying to replace unit. I reached out th PLATINUM again. They responded with an email saying they notified AHS that unit needed to be replaced and they refused to accept their diagnosis and said they needed a 2nd opinion. So AHS wanted 2nd opinion not PLATINUM. I was mad it been a month now my children asthma actic up and getting because no heat and AHS worries about their pocket. I agreed to have another tech come out because I just needed heat. AGE Mechanical came out. Everything he thought it could be he learned was all just replaced. He asked for report from previous tech showing what was replaced. I txt him it he looked at it and looked at unit again. Said only thing left is to replace. He asked for photo of unit outside so he can put request for replacement however once again when I speak to AHS they say oh I need a 2nd opinion. Their excuse this time was tech could not diagnosed and does not service my brand Furnace so it needs to go to a tech who can service my unit. Age Mechanical took measurements and everything. At no time did tech say he didn’t handle guardian furnase. I have cameras. If so why did it take him so long. He could have just left right after seeing the brand unit I have. So I realized AHS was only staying with tech until they say replace unit. When thats the diagnosis they want to send a new tech. I submit claim with bbb uploaded all proof showing I did get a diagnosis and AHS is denying replacement by constantly saying I need a 2nd opinion. Now its been almost 2months and still without heat. I escalate it and both calls they only gave option of another tech or I agree with relaxed heating diagnosis that its due to maintenance but I keep telling them I have receipts showing it was service what was suggested and unit still not working. I agrred to have them scheduled a 4th tech but started looking for legal advice why am here. I feel I am being set up to get a patch up job or blamed for unit not working by them constantly sending new tech and think they will continue doing this till report suits their approval. I need help my kids are 6,8,10,12,14 we all asthmatic in house at it gets so cold at night we getting sick every week either, coughing, a runny, nose, i myself was sick almost a week with a real bad cough. Its so cold in home. I not sure what else to do.

  3. Candace B Hetzer says:

    ADD ME- I would write why but already spent 4 hours on the phone with these corrupt people and have no energy left to give.

  4. Cindy Hauser says:

    I have been dealing with them for over a month. Gas furnace was broken asked them to send a technician, 30 minutes after they left it broke again, the next day the company came by and measured for a new furnace. Never heard back from them again. Countless call to AHS and countless calls to the repair tech, no answers. They lied multiple times about sending in service tickets because I never got a call back. Was put on hold for HOURS and continuously told the same thing about how they were experiencing high call volumes and I would get a call back that never happens. When a service appoint was made for the company they would send me a confirmation email of the date and time and then either never show or send a text message giving some sort of excuse. All the companies they have used have under 2 star reviews or dont have an online presence. How can they treat people like that?! So fed up but scared to cancel with them because I dont have the money to replace the furnace myself. My family has been freezing for over a month because of these horrible people.

    1. Lindsley says:

      I am in the same boat here. Mid March of this year I contacted AHS because my furnace kept turning on but shutting off. By time a tech came out the furnace would not turn on at all. The tech relaxed heating said i needed a maintenance and to replace igniter. Igniter was covered but maintenance wasnt and relaxed wanted almost $400 for a routine maintenance. I dealt with this company in past and knew they had a habit of overcharging and knew I had never paid that much so I called around. Everyone was about $100 some less. I told them well I will do my regular maintenance with another company and you all just fix whats covered. They refused unless I did maintenance with them and I refused to overpay for maintenance so they offered me $134 a cash offer for part. I hired another tech Nexgen. He said the unit is leaking oil badly and was on its last leg but new it was cold and needed heat so agreed to fix what was sugeested. I paid $300 for part and maintenance and he did a full report took pics and video. It was short lived as even with new igniter a day later the unit was back to turning on then shutting heat off. I called Nexgen they said its because I need a new unit. Its not the igniter but igniter going bad because unit keeps misfiring. I went back to warranty company AHS to let them know that issue was not fix it turns on again with new igniter but shuts right back off heat. They agrred to send tech for 2nd opinion. But refused to reimburse me for part although I paid for igniter. PLATINUM REPAIR then came out they replace Control board, Another time the replaced gas valve, and they replaced flame sensor. They came out 5 time total. None of the parts ever fixed problems. They then told me I needed a new unit. He took measurements. AHS then called said platinum could not diagnose unit and I needed a 2nd opinion. What AHS did not realize is PLATINUM also sends me a copy of receit every time they did work saying what they did and their suggestion. I asked ahs why their report read different than mine. They said they got nothing saying to replace unit and that they were told unit is fixable. I have the report and it said nothing of that. So I realized they might be trying to avoid paying to replace unit. I reached out th PLATINUM again. They responded with an email saying they notified AHS that unit needed to be replaced and they refused to accept their diagnosis and said they needed a 2nd opinion. So AHS wanted 2nd opinion not PLATINUM. I was mad it been a month now my children asthma actic up and getting because no heat and AHS worries about their pocket. I agreed to have another tech come out because I just needed heat. AGE Mechanical came out. Everything he thought it could be he learned was all just replaced. He asked for report from previous tech showing what was replaced. I txt him it he looked at it and looked at unit again. Said only thing left is to replace. He asked for photo of unit outside so he can put request for replacement however once again when I speak to AHS they say oh I need a 2nd opinion. Their excuse this time was tech could not diagnosed and does not service my brand Furnace so it needs to go to a tech who can service my unit. Age Mechanical took measurements and everything. At no time did tech say he didn’t handle guardian furnase. I have cameras. If so why did it take him so long. He could have just left right after seeing the brand unit I have. So I realized AHS was only staying with tech until they say replace unit. When thats the diagnosis they want to send a new tech. I submit claim with bbb uploaded all proof showing I did get a diagnosis and AHS is denying replacement by constantly saying I need a 2nd opinion. Now its been almost 2months and still without heat. I escalate it and both calls they only gave option of another tech or I agree with relaxed heating diagnosis that its due to maintenance but I keep telling them I have receipts showing it was service what was suggested and unit still not working. I agreed to have them scheduled a 4th tech but started looking for legal advice why am here. I feel I am being set up to get a patch up job or blamed for unit not working by them constantly sending new tech and think they will continue doing this till report suits their approval. I need help my kids are 6,8,10,12,14 we all asthmatic in house at it gets so cold at night we getting sick every week either, coughing, a runny, nose, i myself was sick almost a week with a real bad cough. Its so cold in home. I not sure what else to do either.

  5. Willie Hudson says:

    I just had moved into my home in Yuma Arizona in August 22. I paid $600 for the one year service. Then they talk about 400 more dollars because I’m in a new home and now I find out that that 400 they charge me part of that is kick back to the real estate, that’s cheating that’s ripping off poor people. Big companies do that, they don’t care all they want is your money. And when you get to warranty they tell you they replace an appliance or whatever work that needs to be done. My roof was leaking they sent an inspector they said I need the whole new roof so I thought home warranty was going to pay for it because I pay that extra $400 they gave me 1,500 I had to pay the other 6,000. Another big company rip off, of the working Man I’m a disabled Marine 100% I don’t like to just give up money for nothing and that’s what I did. I’m going to join this class action suit but it says I have to get my own lawyer I can’t afford a lawyer. I just can’t afford this home because the real estate ripped me off when I bought the home. It cost $60,000 to fix the sewer system and the plumbing system in the home and the real estate lady knew it but they didn’t disclose it. But I guess I was blessed because this city of Yuma is a military town and the people got together and and donated the money. Even real estate companies and real estate people rip you off and ain’t nothing a poor person can do about it. It’s disgusting what big business will do. And I can understand why some people do what they do.

  6. Tyrone Bennett says:

    I had American HomeShield as a home warranty. They came out to repair my A/C unit and now my unit does not work and it has to be replaced. The technician put in the wrong compressor and freon and it caused the motor to fail and leak and now we have no air or heat. It’s going to cost us about 20,000 to replace the system.

  7. Jonnie' Chardonn says:

    We had to move out of our house for 47 days because of the mold that set in throughout our home.it was caused by AHS who sent a repairman last year to fix ac unit & he told me what he did to jump start the ac unit to get it to cool.
    This year we were waited over 45 days to even get an appointment with AHS to fix, repair our a/c unit. That was the soonest they could come. I hired another company & they had to replace the whole unit.
    I have COPD & I thought I was gonna die. Our 2 dogs also got very sick also. Every day we went without a/c it was 95-100 degrees. All day. Coolest nights 79-85 degrees. That was the hottest summer on record for # consecutive days.
    I got so sick.
    It cost us over $20,000 to get the house cleaned & got rid of mold. Moving out was horrible.
    We are both 75 & it literally was the hardest time of our life.
    Jonnie Chardonn & Art Carlson
    P.S.-please allow us to help in ANY way we can.
    6027 Mount Carmel Parke
    Wilmingyon, NC 28412
    910 471 0418

  8. Luposian says:

    We bought our house in 2019. Thankfully, the couple times we needed something fixed, it was fixed relatively quickly. The overhead GE microwave needed an entire motherboard replacement… that took 2-3 visits to accomplish. Our Kenmore icemaker was putting out bits of plastic. The company AHS assigned was A&E Appliances (a Sears-direct company, I believe). The day of the appoinment, we’d get a call, saying the tech was sick and to reschedule the appointment. This happened 3x in a row. We finally asked AHS to find another tech. They contacted a local one and the guy came out, diagnosed the problem, and the next visit, installed the replacement mechanism.

    My biggest issue, right now, is they’ve upped their service call charge to $85 from $75 ($10 increase) and the premium is $923.88 for the year! It was $720 last year (2022)! That’s a $203 increase in just one year! What on earth? Any idea why?

  9. John W Del Casale says:

    I am dealing with AHS and their lack of transparency. The big disclaimer is “pre-existing condition’ at which point they refuse to cover the repairs. I have a home with roof problems. There are leaks around two roof vents and some other issues that could be the fault of the previous owner. Nevertheless, my attempts to reach them have been unsuccessful. I can’t get past the automated phone attendant. The website indicates they will cover part of the claim but when the technician speaks with them, the deny any coverage. If there is an active class-action suit against them, I am ready to join. If not, how do we get one started. After reading some of the comments, there shouldn’t be any trouble finding participants.

    1. Ronald Lee says:

      I have been American Home Shield for several years now. My HVAC unit stop blowing cold air. The contract technician wanted $7,000 to install a new unit, even the current unit is less that 3-4 years old. I was charged a service charge for them to come out. Last year, my refrigerator started leaking water at the bottom damaging the kitchen floor from sitting. I put in a service request online, and the tech that showed up didn’t fix the issue. He said he needed to come back later to repair the issue. Upon his return and supposedly fixing the problem, it still leaked water. Upon the 3rd request for a more experienced tech. The leak was finally fixed after (3) visits. And they charged me a fee for the service, which begs me to ask, why should I pay $60.99/mo. When I have to pay to have it fixed anyway. I tried canceling my policy several times, and they won’t until I make a payment for February, in which I refuse. Just a horrible company that is taking advantage of hardworking customers like me!

      1. Johnell Wilson says:

        Hi, we are going through the same issue with our furnace. Over 3 months with no heat and they finally agree to replace it but want $5200 to pay for services/hookups we already have. Charging 4x the actual cost of permits. It’s funny how AHS requires all these ridiculous installation requirements but specially exclude them from the policies coverage while allowing their contractors to rip off their customers. We got a bid and the other company will use all existing services/hookups and go through the same permitting process. It’s a total scam and we will cancel as soon as we get this resolved.

        I’ve read on the Bbb’s website that cancelling is impossible but once they filed a claim with the Bbb, they were finally able to cancel.

        Who in the heck regulates this industry? It blows my mind that these companies can get away with this.

  10. MPinson says:

    In 2021, I had my Heat & AA unit replaced. I call & text the initial tech that was sent he promised to come & nvr did. I called AHS numerous time n numerous techs were sent. Finally in 1/2023 another tech came from AHS and stated he knew the problem when he heard the knocking. The original tech that came out ordered @ installed a 8 seer opposed to the original 6 seer. He stated that the original tech should have known better if he was legitimate cause the duct work etc in the walls should have been upgraded to accommodate the 8 seer. Todate all I hear all day when the heat comes on is knocking in the walls. I’ve recorded the knocking and let each tech hear it. Only the most recent tech that came knew the issue as soon as I played it for him and the knocking in the walls started. I can deal with this. Plz help!

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