Class Action Lawsuit Against American Home Shield (AHS)

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American Home Shield current and past policy holders may have already received a letter informing them that they may qualify to be a part of a class action lawsuit brought against the home warranty company.  The Abney Class Action Settlement website has all of the documents associated with the case.  While both parties vigorously maintain their side of the case, it has been agreed that a settlement is better than a protracted court battle.  The crux of the case is whether AHS’s payment to Realtors was a RESPA violation or not?  If the settlement goes through the payment will be $45.11 and not to exceed $60.

Regardless of the outcome I like the home warranty concept and think that AHS is the best of the ones we have had dealings with.  Home warranties don’t cover everything and like most insurance policies you really hope you never need them but for the cost of the warranty and associated deductible we have seen AHS pay out many times the cost of the product.  In the case of properties with air conditioners it is a great idea because those units cannot be inspected if it is too cold.

If you have a home warranty the key is to call the warranty company first when there is an issue.  Don’t have it fixed and then call hoping to be reimbursed.

16 Comments on “Class Action Lawsuit Against American Home Shield (AHS)

  1. Most of the realtors I know have a standing policy that any monies recieved from AHS gets donated to the charity of the clients choice.

  2. Are you really settling for $45 to $60? Check the AHS contract under letter “L” Miscellaneous. AHS claims their surety bond is held with Liberty Mutual in E. Carroll Iowa. Call the number listed and the phone will be answered by an AHS employee by the name of Beau Cullum pretending to be Liberty Mutual. Ms. Cullum also doubles as the CEO David Crawford’s executive administrative worker. So tell me how can one person be in both Iowa and Tennessee (corporate location) at the same time? Easy, as AHS perpetrates FRAUD on the unsuspecting consumer on a regular basis. They pretend to be their own insurance company and answer the phone as Liberty Mutual. How can that not be FRAUD people? And you are settling for $45 to $60 each? Wake up and smell the money. I rest my case.

  3. Interesting perspective but I think the question at hand is the possible RESPA violation and nothing else.

  4. I’ve received this notice as I sold my home in 2008. I’m currently serving in the Middle East and nowhere in the document does it say where to mail a claim. All dates and addresses show as “…[address]…” and “…by [date]…” for the due date. Does anyone have any idea where to send the completed claim form?

  5. I need to know what attorney filed this claim. I am wanting to start one against Choice Home Warranty and I have a list of people wanting to do the same thing. Anyone with any info that could help would be greatly appreciated. Please contact me.
    Ft Worth Tx

  6. AHS already sent two companies to my place, the second has the same diagnosis as the first one and yet AHS is not taking any action? Is there anyone I can approach that can help me?

  7. Renato- i do not know how you can get AHS to approve a claim if the diagnosis is covered under your contract.

  8. The diagnosis is covered under my contract. Are you saying that even though the diagnosis is covered under my contract, AHS can still not take any action to fix the problem?
    Note: The second technician was sent for second opinion and he has the same diagnosis as the first technician fom another company.

  9. I am not saying anything of the sort. I do not work for or represent AHS. I can’t say whether a claim should or should not be denied. Like all customer service issues I would start calmly with a customer service rep and asked to be transferred up the chain of command, keeping meticulous of notes of who I was talking to when.

    After a real estate transaction closes your real estate agent has no agency relationship with you but they might be able to help through their customer service rep too- if your AHS contract order was placed by a real estate agent.

    I wouldn’t give up but I’m afraid there is nothing I can personally do.

  10. I just cancelled my AHS policy because of their service policy on water heaters after being an AHS client for at least the past 6-8 years. My hot water heater went out on a Friday morning. I contacted them and was told no one could come out until Monday; I was okay with that. I told them the size and type of water heater and asked that the plumber coming out bring a replacement unit. I offered pictures and a copy of the receipt showing the unit was 18+ years old. I was told that the plumber would come on Monday to diagnose the problem. Then it would take a day or two to get a replacement hot water heater and I could take another day off to wait for a plumber. That’s a loss of at least two half days of work. I can’t afford that kind of service; I cancelled and I believe I’m owed a refund for premiums paid this year. I wonder how many other clients are running into this sort of thing.

  11. I did have some issues with AHS but I found XXXX’s [names removed by moderator] telephone number online called him, because I got different answers everytime I called AHS. The kept not wanting to cover my electrical and plumbing on my air conditioner after the contractor they issued said I had a bad compressor. The contractor they used was terrible. And they blew up my fan motor because they put too much compressor on my old air conditioner. They over charged the freon. When I finally figured that out my claim ran out and there was no warranty with the air company for the compressor they put on. So I got messed up 2,000.00 later I have a new air conditioning unit and I payed out of my pocket. ZYZ in XXX’s office did agree that AHS should contract the plumbing and electrical but the contractors they used were terrible.

  12. Realtors need to start holding AHS’s feet to the fire. We had a contract with them 15 years ago through the purchase of an older home. The service was great–we even renewed the contract for several years until we remodeled and replaced most of the systems/appliances.
    We recently purchased a new home with a AHS warranty and called about a leaking toilet We were denied coverage because it was not caused by “normal wear and tear” We even got a second opinion (for a second $60) which differed from the first and were denied again based on the first report.
    Both plumbers mentioned that in the last couple of years it has gotten increasingly difficult to have a claim approved by AHS. If I had googled AHS before we purchased the home I would have seen the huge number of similar complaints and would have just asked the sellers for the $406 that they paid for the (worthless) policy.

  13. I can’t say that I have nothing bad to say about AHS. I’ve found that the claims desk seems to have a culture of “no” and that as a Realtor I have had to call our rep directly, both on our own behalf for our insured properties and our clients, and that is when things start to happen. It shouldn’t work that way but it does.

  14. Since October 4th I have been waiting for electricity and air. the air conditional co Joe CoolCo. blew the fuse box and then whren the electrical compsny came the next day he acted as if it was my falult and had too many appliances. Nothing different in my home. Not a night light has been added. Then the air man never showed up even after fhe caused the fuse box to burn up. And today (10-16-12) He was to come again never showed. These are all AHS contractors. . My Mother is 92 years old and can’t return to this Sauna. She would be dead. AHS is systematically fostering bad unprofessional service and their customer service agents just keep lying about this and that and never call back. There are no supervisors available to report anything to . Well that is what they say. Someone needs to report this to the Better Business Bureau of Florida. They also are now in a class action suit and should be customer professiuonal.

  15. I canceled AHS, after they accused my broken washer of being “abused” and refused to pay. It also took them over 10 days to fix my refrigerator, but they insist that the contractor use their parts, which takes them forever to get. I ended up with a freezer full of rotten food…….and then I said goodbye.

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