AG's Office sues home warranty company following thousands of complaints

PHOENIX - Arizona's Attorney General is taking aim at a home warranty company that has been the target of thousands of complaints from people across the country.

In a statement, Attorney General Marck Brnoich said his office has filed a consumer fraud lawsuit against Choice Home Warranty, accusing them of collecting millions from Arizona consumers but used contract exclusions, payment caps, and bad-faith refusals to avoid paying for repairs.

Officials said, in the statement, that Choice Home Warranty promised its plans will protect people from the "high cost" of unexpected appliance repairs, such as refrigerators and air conditioning units, when the contracts exclude repairs for such items.

Officials with the Attorney General's Office also say contracts have a $1,500 cap on payment, and a $500 cap for plumbing issues. Customers were also forced to wait for four days in the summer heat for a technician to inspect a broken air conditioner.

"Sometimes when an AC went out, repair was $2,000, and they only cover it for $700 or way less than the actual amount," said Brnovich.

According to court documents provided by the Attorney General's Office, Choice Home Warranty sold its service contracts for anywhere from $420 to $750, and the there are 4,830 complaints made against Choice Home Warranty on the Better Business Bureau website, as of June 28, 2019.

The Attorney General's Office says they are seeking $10,000 in civil penalties for each violation of the Arizona Consumer Fraud Act, as well as attorney's fees and costs.

Documents related to the lawsuit:
https://www.azag.gov/sites/default/files/docs/press-releases/2019/complaints/201910011257.pdf

File a Consumer Complaint with the Arizona Attorney General's Office:
https://www.azag.gov/complaints/consumer