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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
i had american home shield for 5 years and they claim when you buy it that when making a claim it would take only 24 hrs to have it fixed. that is not true i called on my water heater and i could not get american home shield anyone to come out for 3 days and then they just called to make a appointment with me. we fixed it by our self. then we had a water leak and had to fix it by our self this is not just one time it was 4 times but our rates kept going up. we had a problem with our dishwasher and it took them 7 days to get some one out there. at one point when you call for service american home shield would say some one would be out but then 3 days later i got a email saying the service man was not coming he refused. it has been problem after problem but they kept taking my money for service was not be given. i would like to be in on any law suit. i would be willing to go to court.
I paid $1150 for two year plan on a new home from American Home in May 2019. Two months later my upstairs bathroom faucet sprang a leak that could not be turned off except at the street because the shut off valve would not turn off. I called in the emergency repair on Sunday afternoon leaking water everywhere. On Wednesday afternoon a technician plumber arrived, replaced a valve so as to completely shut off the water upstairs. I needed a new faucet as the old one was not repairable. The new one cost $400. (There are two in the bathroom and it has to match.) American Home Shield would only cover $200 for a faucet. They will only pay a certain amount for any type of repair and it’s up the the homeowner to pay the rest. I paid $100 for the service fee and got a $5 valve replaced in 20 minutes. It took four days to get help with a leak upstairs… After repeated tries to cancel the policy and get a refund for my $1150 I paid for the warranty I got a check in the mail for $390. Two month old policy. One service call where I paid $100 more, and my refund was $390. I called repeatedly trying to get someone to tell me how that was calculated and all I could get was that there are “administrative fees”. Wow, $800 administrative fee for a policy that was two months old. I sent them a certified letter asking for an accounting of the admin fees two months ago. No word. This warranty company is a complete rip off.
I called AHS on December,16th and the so called technician came on the Wednesday the 18th, he looked at my refrigerator and said “ oh I know what’s wrong with it, i’ Order the part be back on Friday” I didn’t hear from him until yesterday the 25 th, after I called AHS twice and complained,
But the thing is my refrigerator started working on its on the 24th, and I asked about the $400.00 in groceries I had just bought, I told them I had the receipt but they said sorry we don’t pay for spoiled food,
I just got off the phone with AHS and told them to send and contractor and they said you’ll have to pay again, I said no I won’t, I don’t know what kind of contractor just looks at a refrigerator and knows what’s wrong, so if someone knows of a class action lawsuit please let me.
I reported a service request for a stoppage at my new home, for which we have an American Home Shield insurance on November the 23rd. A contractor arrives Tuesday, 26 November. They are unable to do anything, as apparently they need authorization from AHS to add an access to the main line. After two days, I call them, and they tell me they are waiting authorization from AHS. On Saturday 30 I call them again, and they tell me they would call me back on Saturday evening or Sunday. I call them again on Sunday as obviously I received no news, and they tell me I should NOT call the anymore, as they will call me if they have news. On monday I call AHS. They say the company did not file any report. They tell me to call again on Thursday, and if they had news they would call me back.
I call back AHS on Thursday the 12th, and they tell me that they got a hold of the company and they got the report, and would call me back by 3PM. At 4PM I call AHS again and they tell me they have no report from the contractor, and I should wait 24-48 hours. At this point it is almost two weeks since I filed the report, I cannot use the washing machine and the kitchen sink is clogged.
I will need to pay out of pocket for these repairs, even though I have an expensive and completely useless American Home Shield warranty.
RUN AWAY AS FAR AS YOU CAN FROM THIS COMPANY !
Have been trying to get my refrigerator fixed for over 2 months. The first contractor they sent out twice but their reports were not good enough to where that contractor refused to keep wasting their time and wouldn’t come anymore. Next they called Sears repair, they diagnosed that it needs a plumber. AHS did not like that and insisted that Sears keep coming until they would make a different diagnosis. Sears came again and said the same. Again AHS not happy and wanted them to come again and made 4 more appointments for me and each time Sears would cancel. Sears will only give you a window of 8am-5pm, so each appointment I had to rearrange my whole day for nothing. AHS says Sears never sent in the diagnosis from their last appointment which was 11/4/19. Today is 11/30/19. And still they say no diagnosis has received. Sears says they sent it at least a dozen times.
There is an apparent war between the two companies and they have put the customer in the middle and I am suffering for it. AHS has set up yet another for 12/2/19. I told them I have a doctors appointment made 3 months ago, they actually suggested I cancel my doctor’s appointment, after all this is more important than my health. or allow someone into my home to be there, setting me up to be a victim. NO! AHS refused to make another appointment and refused to cancel it, I told him I would not be here a portion of the day. The technician would only cancel it again for the 5th time anyway, and I would have lost my Dr Appt.
I told AHS that I was not comfortable with Sears and the games that they are playing with me and AHS and wanted someone new to come out. i have been over accommodating and patient between these two companies and something needs to end. In the meantime, AHS continues to collect my money. I have spent the majority of my hours on the phone with these 2 companies, and want my life back and a working refrigerator
They are not considerate of their customers needs.
I purchased an AHS home warranty and they are not very clear on what’s covered. To replace my Air Handling Unit I had to pay $1,100 out of pocket plus the
$75 copay!!!! They don’t cover attaching the ductwork to the new unit, don’t cover freon over $10/pound which is ridiculous since it’s $50 to $100 per pound from the installers, and many other details of the installation. AHS buys the A/C units themselves and sends them to the installer to save them money. I have a 3 ton Trane system and they sent my installer a cheap 2 1/2 ton Goodman air handling unit to replace it. Installer sent it back and they sent a 3 ton Goodman unit that didn’t fit, it’s built upside down and backwards from the Trane unit. Then AHS promised they would send a Trane unit. They sent ANOTHER 3 ton Goodman unit that doesn’t fit. My installer got so frustrated HE bought a 3 ton Trane unit that does fit and paid for it himself!!!!! The warranty is not worth the money. Put it in the bank instead and use it to pay for repairs yourself……
American Home Shield sent out two crappy contractors to diagnose our HVAC beginning on 10/4/2019. The first one claimed to replace the capacitor which he didn’t do. I did get to hear about his “former” addiction to crack cocaine. He put freon in the system which temporarily fixed our AC for about 2 weeks. After complaining that my wife was afraid of the tech, AHS sent out another tech who claimed that we had hurt the AC because we had supposedly ran the AC low on freon after their crappy tech had likely damaged the AC further.
I signed up with AHS in May 2019 . On September 4th, my tenants reported that the stovetop had a faulty switch. I called AHS , they said that they would send an agent right away. A technician called me seven days later to say that there was an appointment set for September 18th. They called me on September 17th to inform me of the appointment cancellation due to the lack of an agent. After several calls, I had it fixed through another source, then, I called AHS and asked them for the job cancellation and a refund of the service fee. This is November and I am still waiting for the refund! An agent called me three weeks after I had cancelled the request with AHS informing me that he was on his way to my house to fix my stove top switch!!
Now, don’t go anywhere, the story gets better. On October 1st, my tenants informed me that something was wrong with the furnace. I called AHS the next day. Today is November the 8th ! After many, many phone calls and pleas and hearing excuses such as the furnace has arrived, but it is the wrong one, the right furnace arrived, but the van that was supposed to pick it up has a flat tire (!!!???), and this and that lame excuse, finally, on 11/8, a technician went to replace the furnace and up on his arrival , he informed my tenants that he has been given the wrong furnace and they might be able to do the job on 11/20 (!?) if all planets are aligned with each other. And oh, they also requested $990.00 in the form of CASH or MONEY ORDER ( NO checks and NO credit card)… my tenants have been trying to keep warm by using space heaters. They are frustrated and with no light in sight of when this job will get done, they might break the lease. I have NO furnace. Really, consumer bureau MUST shut this operation down.
I’ve had an American Home Shield contract since Jan 2014. Pay almost $800 dollars a year. Pay $75 whenever a contractor is sent out to do a repair. Once it was my hot water heater which the tech cut a hole in my wall to fix line and left as if he didn’t cut a hole in my wall, outside faucet has a leak which they said was not covered under my warranty. Now my furnace has issues, tech came out to fix. Left telling me that he did not have the part needed to fix furnace but he would order and return to complete job once part came in. I got a call the next day and was told it will cost less to replace my furnace than to purchase the part needed. My out of pocket cost would be $1600. I was told American Home Shield would pay for the furnace but all the other parts needed to bring my unit up to code were not covered under my contract or I could take a pay out and have the work done by whom ever I wanted. This has been rip off for me. If I had money like that to spend I would not need the home warranty.
I have had a contract withAHS for 2 years and have never had a claim. until now. My cooktop went out in early October, they sent a repairman from The Repair Clinic, He looked at the cook top, then flipped the breakers, and declared it was the main computer board that wasn’t functioning. That was October 14th ,I believe. Since then I have been calling AHS to find out the status of my claim. They keep saying they are waiting for a diagnosis from the Repair Clinic, and offer nothing as an alternative. I have tried to call The Repair Clinic but get no answer or return call. This is a ripoff!