AHS Class Action Lawsuit Settlement
AHS (American Home Shield) is one of the popular and the biggest among all home warranty companies. AHS provides home warranty protection services nationwide. Some of the homeowners warranty plans are criticized for lack for customer service. The problem is complicated and is partly attributed to small print contract terms that customers are not aware of until they file the claim.
AHS recently announced a class action lawsuit settlement for breech of contract. The litigation is about not making repairs and replacement per the contract. AHS is admitting no wrong doing and it denies the claims and says it is agreeing to the settlement to avoid costly legal proceedings.
You can file a claim if you purchased your home warranty between July 24, 2001 and December 31, 2008 provided you were denied service during the above period. The claims settlement website has all details here – www.edlesonclassaction.com
UPDATE: One of our readers posted another similar settlement which can be found at faughtclassaction.com
— If you are looking to buy AHS home warranty, check out American home warranty reviews on our website.
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I am so glad that I am not the only one having problems with AHS. I have only been in my home for 71/2 weeks. The A/C started blowing hot air and I called AHS. They sent someone out and it broke again 4 house later. They sent someone else out and he repaired what the first contractor broke. Now it is broken again and I am told that I am to blame because I authorized an improper repair???
I don’t have money to buy an new A/C and I am not sure why I have to keep paying service fees.
How is this my fault? These guys are a rip off! I was cursed out by 2 customer service reps and told that any appliances that were previously repaired prior to my purchasing the home are void due to previous work?
This is not good….
On June 11, 2009 at around 9:00 p.m. we discovered there was a hole in our holding tank for our well. We called AHS to report the leaking tank and were told that it was not covered. I do not even sure that they understand what a well system is. A few day later we discovered that the central air conditioning unit in our home stopped working. We called an air conditioning service to come and look at the air conditioner and discovered that there was a hole in the side of the unit and exposed copper coils, rust on the corner of the unit and it was disconnected because it was not safe. All this at our own expense. When we discovered the problem we called AHS and they sent out a service man and he said it was a piece of junk and needed to be replaced. He call AHS and gave them a report. The next thing we new we had another air conditioning service man calling to say they were called by AHS and wanted to set up an appointment to come look at the air conditioning unit. AHS wanted a second opinion. He came out and gave his assessment. It was not safe to hook up, it was a piece of junk and he would not do it and it needed to be replaced. Called AHS and gave him his report. We got a call from AHS telling us that our problem was not covered under the warranty plan. Mainly, because none of the technicans said that the problem was due to normal wear and tear. The unit is at least 20 years old. I would like to know what they consider to be normal wear and tear. I would not recommend this company to warranty a dog house. They seem to pick and choose who they want to help. We bought this warranty in good faith thinking that things we needed to be covered were covered. I believe they ripped us off and thinking about putting an article in the local paper so no one else has to go through what we have had to go through.
about april 2009 I decided to try ahs home warranty after a bad experience with first american home buyers protection. june 13 2009 I called in for repair my second floor central air stopped working (same unit that was replace by first american home warranty) well didnt get a call back from anyone untill 2 days later, I understood it was the weekend but when you live in Texas 2 days without air is torture, finally get someone out to look at the unit 7pm Monday night he tells me the unit outside broke because it was not a proper match for the condencer in the attic and most likely the ahs wont cover it but he will submit it. 7pm the next day ahs finally calls to tell me they will not fix it sorry. I said well why dont you put in a unit that is compadable they said no even after the lady on the phone when i bought the warrant said upgrades are covered. just like all other warranty companies ahs is a rip off, they didnt care and just want to take your money
several years ago our mortgage company talked us into purchasing ahs home warranty. shortly afterwards i called ahs for warranty work four times and never sent anyone.they are crooks.
In October 2007, we requested AHS coverage for our built-in bathtub because AHS contract on page 6 outlined under D. Covered Systems and Appliances that it was covered. However, AHS did not cover the repair work of $238.00. We submitted a letter requesting a review of the matter along with the invoice and a copy of the contract, but to no avail AHS did not reimburse the $238 and we also had to pay the service fee of $55 to AHS. The plumbing company who did the repair did not understand why AHS would not comply with the contract and cover the repair!
We are hopeful that the Class Action Suit underway will turn in favor of the customers and settlement will demand that AHS payouts be made to all those who were not reimbursed for repairs under contract.
I had a gas range installed that AHS ordered to replace my broken one. After it was installed I was told I would have to pay for the new gas connector. I read the manual on the new range and called the manufacterer which states, anytime installing a new range the connector must be replaced, it is a safety issue and standard, ecpected part of the installation. AHS is claiming that it is a “Modification” and I have to pay for it. I do not see how a required and expected step of a normal installation is a modification. I read the contract and no where does it state that the expected gas connector is a modification. I seem to have to fight for every nickel and dime with this coverage! So I am looking into a “Class Action Suit” as who knows how much has been wrongfully charged to the customers over the years at $40.00 + a pop.
I had a problem with my microwave oven, the face panel to the controls was falling off, thus posing an electrical hazard! I called AHS, they sent someone to take a look at the problem. I later received a letter from AHA stating that it was a cosmetic deficiency that that it was not covered. WOW, $55 dollars to tell me that a broken microwave with a falling panel is purely cosmetic! I canceled my plan soon after, with the premium paid and service call I could have purchased a new one. AHS IS A RIP OFF!!!
When I first purcashed my house, I bought q brand new side refrigerator with the ice maker. The ice maker stop working. I called for a repair and was told they to do cover that part of the appliance. My ice make is still broken today.
I have called on numerous plumbing, leaking facuets. I get charged $55.oo for each service charge. They come out and changed the washer and a month later it is leaking again. I don’t know why they don’t just change the stem and correct the problem.
I wrote the letter below to AHS in MARCH 2008.
I eventually had to get the air condition fix myself. It was the fan motor that need repairing. I had it replaced and have had air every since. But in the mean time, I had my entire breaking box replace with more power and that was not even the problem. That were more money I had to spend.
I have been trying to get my air conditioner repaired located at 3016 Dumbeath Road, Memphis, TN 38128, since October 2007. AHS originally sent out an air conditioning company to service the air conditioner and make the necessary repairs. The Air Conditioning Company reported to AHS that I had an electrical problem. I paid the Air Conditioning Company $55.00 for the service call in October. After finding this out problem, I called AHS to find out what was the progress and what I needed to do.
AHS then sent out an electric company serviceman from Central Electric. The electrician said that my electric breaker for the air conditioner was 30 amps and it needed to be 40 amps and I needed this repaired. Central Electric charged me $55.00 for this service. I felt sure I had left money to cover this charge with my father to pay them. He is old and I did not have a receipt for proof. I later received a bill from Electric Central and AHS for $55.00 in which I have paid.
After learning about the electric problem and not ever having a problem with my electric breakers amps in the past, I called Raleigh Electric Company to come and check out my electricity problem. On October 23, 2007, Jim Whaley, an electrician, at Raleigh Electric Company checked out my breakers in question and stated I already had a 40 amp breaker connected for the air conditioner. He said he didn’t know what the other company was talking about. He then checked the other breakers amps for the other appliances and they were fine also. He then went and check the air conditioner after I told him what the air conditioning serviceman and the electrician that your company had sent out had told me. Mr. Whaley, found that the fan motor on the air conditioner was not working. He said the air conditioner was getting power and the compressor was kicking in like it should. Mr. Whaley said AHS could called him if they had and questions about the breakers amps or air condition problem. Raleigh Electric charged me $73.50 for their services. Now, I am out of $183.50 plus time off work and still have an air conditioner that has not been repaired.
I have tried to contact Tina in Customer Relations at AHS at 1-866-343-5674, extension 2012 on several occasions. I have left messages after messages, called the main line and they stated they would e-mail her my concerns of trying to return her call where she left me two messages on my home phone.
I have called on my washer and dryer which were also purchased new when I bought the house (5 years old. Guess what I could have bought another new washer and dryer for the amount of money I have paid out. The dryer is not working now, AHS will not fix it or purchase me a another one. The are always going to find out and escape path or some reason to deny the claim in order to replace it. The repairman said I had three thing wrong with it and felt AHS was not going to repair it and he was right. I did not renew this year. I havw been with them at least 5 years. That over $3,000 plus $55.00 for each time they have been out. I could have bought me a new washer,dryer and refrigerator.
Starting in June, two months after we bought our house we had trouble with our AC. The drain was clogged and flooded the ajoining room and hallway. Contacted AHS, contracted company came out and fixed the problem, $55. Pre winter mantinence was scheduled in Oct, 2008, $69.99 plus water heater maintenance $29.99. To our gut wrenching surprise our heater would not work and the contractor claimed that it would take $6k to install a new unit, new duct work and intake site, none of which would be covered by homesheild due to neglect. We just bought this house, we had it inspected…how is this due to our negelect? So, we went out and purchased space heaters and piles of logs and toughed it out all winter. Spring rolls around, pre summer maintenance, $127.23. He gives our unit a once over and after asking him for his opinion on the heater he walked over to our thermostat and checks it. Our thermostat was not installed correctly by the previous owners, which wasn’t caught before, so now I have to pay on top of his $55 service call $80 +/- for him to program it. This service is not covered by the warranty even though the house was inspected and everything passed. But, since I was so irrate he discounted me 10%. But before he leaves he trys to convince me to renew with AHS because my AC is 10yr’s old and by his opinion I should expect $1k worth of work on it in the near future or full replacement $6k. But he also told me that full replacement would be a long shot since AHS would repair until parts were no longer avaliable or unless their is nothing left to attach parts too. So, basically over my dead body. But it is tempting to renew when they throw such big numbers at you. I wasn’t aware that they had such a bad reputation. It seemed that most of my problems were with the service men themselves not with AHS although I haven’t yet had to file a claim with them. And at the end of it, I was the one who was left feeling like an idiot but also taken advantage of. I was so nieve to just hand over my check, and some of those times it was really hard to come up with the money to pay those service fees.
I had the core plus warranty in which included the cieling fans. I had a fan in the master bedroom go out and contacted AHS. They sent out a couple of young men to evaluate the situation. While they were there i advised them both that the contract states that they will replace it with a comparable system. One of them acknowladged that statement and told me they would have their office contact me the next day. This was on March 26th, my contract expires on March 28th,. when the office contacted me they advised me that they were bringing out a replacement fan. When they arrived they had the cheapist fan you could buy at wall mart. I ask them if this one was compairable to mine and i was told it was the only one avaliable. Because my warranty was to expire the next day i was afarid that if i didnt accept it, i may never get it replaced. When they tried to install the fan, it didnt work. The switch was bad. Instead of taking it back they took the switch out of my old unit and put it in the new one. They did ask if i wanted the old fan and i told them no. BUT, when they left the took everything. The new box with all the paper work still in it. The warranty card, MFG information sheet and everything else. I did not know this until the following morning. I (foolishly) assumed they left the paper work somewhere in the bedroom. They also did not leave me with any type of paper work. Now work order, comment sheet, i have never heard of any company doing work at someones home and not getting some type of paperwork signed by the owner. I called this company (not sure if i can mention their name) to see if they could bring back the paper work and i was told that they had already disposed of it. I told them that without the paper work from the new unit, and the swithc that came out of it. My MFG warranty would be nil and void. They didnt care. She told me that i could go to the place where they dumped it and look for it myself. I contacted AHS and they just said “Sorry” no attempt to make it right, no attempt to satisfiy the customer, There is more to this story but its long enough now.
I am writing because I feel AHS has defaulted the contract. I have yet to receive the cash payment AHS agreed to pay in lieu of a service for a HVAC system that was replaced in NOV 2008. Furthermore, I repeatedly requested they not send the same repair service company they have a contract with because the company servece personnel are not certified or trained to work on most of my appliances. Even after I made this request in writing, AHS continued to send them out. Now it’s trying to get the service fee from me. I have many complaints about this home warranty/insurance company. I do not recommend anyone to use them. As a retired US Army Senior member, I will be writing comments on all Army Bulletins and any other form of ccommunication I find to communicate the levels of breech of contract. Anyting to keep service members from wasting their money on this bogus company.