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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Edelson website is not working. does any one has right website address. I am also a victim of AHS. I lost almost 1 year subscription.
thank you, Sreedhar
Any time I heara about AHS, I wonder why the attorney general have no investigated this company for the way they do business. They are a rip-off company that do not want to pay. My experience with them was with my A/C Unit. They refused to pay claiming that the original installer never installed it right. This is a thirteen year old house. I cancelled my policy. I am glad there is a law suit on them finally from God sent helper of the poor who cannot fight the cheating giant.
If anyone has info on the lawsuit please contact me through lowel35@yahoo.com. I am very upset with ahs. We had a problem previously that was fixed and now surprisingly not covered. Imagine that. I am cancelling my policy with them.
I tried the link to the lawsuit but it did not open, Same as all the others we had to pay fees to find out they wouldnt cover an item.
Like all of you, we had endless problems with AHS. Their company policy is to always find an excuse to not do repairs or replacements. But we stuck to our guns and forced them to live up to their contract. I suggest everyone stop suffering so much and take them to small-claims court. That will make a big change in their operations fast!
My delimma with AHS was a furnace problem. Purchased the home, had it inspected, and when problem arose, was told by AHS that I did not maintain the furnace properly. This was the first time I sttempted to use the furnace.
Had to sell the house because I was ill and could no longer work. Had to take a loss on the sale because, among other things, the furnace was broken.
Since then I was dignosed with cancer so I have no idea what is going on with the suit. If there are any changes, or any forms that I should fill out, please let me know.
Just as a matter of information, for just the past 36 months AHS has had the following BBB complaints if this tells you anything
BBB processed a total of 2929 complaints about American Home Shield in the last 36 months, our standard reporting period. Of the total of 2929 complaints closed in 36 months, 998 were closed in the last year.
We were sold a Home Warranty when we bought our house in January 2009. The escrow company chose American Home Shield. The Home Warranty Contract Number is 19965414. On April 30, 2009 the kitchen sink backed up. I called American Home Shield for service. They sent out Air Pro Master (Plumbing License #64853). The “technician” said there was no clean-out (there was) so he tried to snake the drain from underneath the sink, he broke the pipe then left after collecting $60.00 for a service fee. I called American Home Shield to get the pipe repaired. They sent out Union Plumbing (License #43524-A) who came out and cosmetically repaired the pipe on May 1, 2009.
On May 2, 2009 I noticed water seeping from the exterior wall where the pipe was located. I called American Home Shield. They said they were waiting for an estimate from Union Plumbing. On May 7, 2009 Jeremiah from American Home Shield called me and said they would fix the pipe but I would have to pay $470.00 to have a clean-out installed. I explained that there was a clean-out there and offered to send a picture of the existing clean-out, they said they did not want to see the picture and could only go by what the technician from Union Plumbing said. I said fine, I need my drain fixed so I would pay for it. American Home Shield said someone would be in contact with me to set up an appointment to complete the repair.
Ideal Services (License Numbers 66194, 52151A, 68097) called and said American Home Shield had assigned the job to them and someone would be at my house by 6:00 PM on Friday May 8, 2009. They never showed up. I called American Home Shield on the evening of Friday May 8, 2009, they said someone would be out on Monday May 11, 2009. The plumber from Ideal Services finally showed up on Monday May 11, 2009. He said there was no clean-out, I showed him the clean-out. He said it was not up to code and it would cost $400.00 to install a new one. I said fine, I just need to use my kitchen. The plumber returned on Tuesday May 12, 2009. He proceeded to knock a hole in my exterior wall and completely broke off the pipe and existing clean-out. He said he would return on Thursday May 14,2009 to finish the job. In the meantime I called the City of Las Vegas Development Services Center to inquire about the Plumbing Code. The inspector told me that the only requirement is that the clean-out be accessible without opening a wall, which it was.
On Wednesday May 13, 2009 I received a call from Matthew of American Home Shield who stated that they were going to send me a check for $1,365.00 and that I would have to find my own plumber, and that was all they would do.
I called Ideal Services on Wednesday May 13, 2009 to confirm the appointment for Thursday May 14, 2009, they said I was “good to go” and they would be at my house to complete the repair on Thursday May 14, 2009. By 10:30 AM no one had showed up. I called Ideal Services who said since I had taken the cash out from American Home Shield the job would cost at least $1,200.00 and they did not want to complete the work and suggested I call another plumber.
I contracted with A-Better Plumbing Company LLC (License# 65597) to complete the repair on May 15, 2009, the pipe was replaced 3 hours later.
I would recommend that anyone who has bought this contract cancel as soon as possible. This organization is a scam with no central structure and they outsource to small less than desirable repair companies in your local area. The BBB is your best source for resolution but do not continue to do business and get out as soon as you can. It will only get worse over time. You are better off getting warrantoies from the original manufacturer an dpossibly bundling them if you have multiple assets.
We’ve used AHS for over 8 years. Now I understand the way they work: 1. On small problems, they pay technicians $60.00 (the deductible). 2. If parts are needed or there is a dispute, they will side with the technicians because they expect them to make up for the low pay. 3. When possible, try to deny responsibility. 4. When a big issue arises, send technicians that will cover their cost by charging for bogus compliance-related work, which -you guessed- are not covered.
AHS understands how to rip off people. It’s closer to a legal scam operation that a true company. STAY AWAY from AHS!
First off my son had heart surgery at six weeks old and he required more operations later. We moved into rhis condo to be close to his Dr. When had problems with our hvac and we had few cool air when greenway left(the local repair crew they use) i had less cool air the next day and the day after that I had no cool air at all.and add to that I have no heat now!!!!I have been here two years with no heat or a.c.!!!! My kid won a dream from one of those wish grantind org. but they don,t give people hvac units because the family would benifit because it would add value to our condo. THANKS HOMESHIELD
We’ve been an AMERICAN HOME SHIELD customer for 17 years (seller paid for the first year of contract when we bought our home in DECEMBER, 1992). We have two A/C-heat pump units (both are 25+ years old) and both have required service throughout the years. AHS has previously responded to service calls and through their agents, provided satisfactory service, including replacing a compressor, UNTIL NOW. WE HAVE FAITHFULLY PAID OUR PREMIUMS FOR 16+ YEARS as we knew that eventually our A/C units would crap out/die/cease to operate.
FAST FORWARD to October, 2009. One unit (the one that cools the living areas – bedrooms, kitchen, etc.) presented a minor leak – which popped our hallway floor. The secondary unit began leaking due to a rusted-out drip-pan. And the pool pump died, too. All in one week – Bad karma? Laundry room flooded, yada, yada, yada.
According to the first technician, the units are so old that parts are not available. Can’t replace the drip pan – can’t find one. The units are so rusted out they’re afraid to work on them because the units will fall apart. Coils will collapse. He called for “authorization” to replace the units and was told by AHS to replace a termostat.
ANOTHER FAST FORWARD – TWO WEEKS LATER. Our calls to AHS for “status” – and the subsequent run-around result in a Senior technician from the same contractor coming out. He agrees with and supports the first technician’s diagnosis. BUT, and according to AHS – “We’re waiting on the contractor to call us with an authorization request”. “We’re waiting on the pictures taken by the contractor”. When asked what the scope of work was, all we got was another run-around. We’ve called the contractor, who is evidently as frustrated as we are.
Here we are, having paid our premiums faithfully for the last 16+ years… When we add up what we’ve paid over the last 16+ years – we could have paid cash for two units….. We expected American Home Shield to STEP UP TO THE PLATE – MAN UP – DO THE RIGHT THING. After all, we’ve paid for it, right? So who wouldn’t expect to receive service? We’ve paid for a HOME WARRANTY CONTRACT. They’re dancing around the whole issue and refusing authorization to replace (OR REPAIR) the units – so guess what???? GAME ON, BABY. WE’RE NOT GIVING UP.
We purchased our AHS warranty about 8 months ago. This summer we had problems getting our Sump Pump replaced, and air conditioner repaired. But the real disappointment has been more recently. Last Friday we had our Furnace cleaned (to make sure we were compliant with our Home Warranty)$60. The rep told me that the Heat Exchanger was rusted and leaking carbon monoxide. He said we should report it to our Home Warranty Co. In doing so, they sent a HVAC rep from another Co. out, who said the same thing, shut off gas to the furnace and charged me another $60. A few days later (with no heat) they called and told us that the Furnace was covered, and was on order. However there would be $700 worth of Non-covered expeses that we would have to agree to prior to installation. Non-covered because they are modifications due to size differences in our existing unit and the one they wanted to put in. (New furnaces are smaller than older ones.) Sounded rediculous and expensive, so I started getting quotes and asked about the Cash Out option. 2 days later, with quotes from $2400-$3500 from local HVAC companies ready, I got a call from AHS about the Cash option. They said they were going to write me a check for $541 to cover the replacement of my Gas Furnace. Something just dosen’t add up. When I declined the Cash option and asked if the furnace was on order they said No, it was put on hold when I inquired about the Cash option. Now I see why Service companies don’t like AHS either. They are making no money off of the furnace, and are trying to get the profits from me. Meanwhile here we are (a week later) sleeping in Mummy bags and trying to sort it out.
The AHS advertisement should look like this:
-Avg cost to replace a Furnace $2400 -Avg cost to repair a Furnace $600 -Your cost with AHS $60 …..(But really all we will pay toward your new furnace is $541, you’ll have to cover the rest!!!!)
Please file BBB complaints. People think this does no good but it helps alot. The Federal goverment looks at these and if there is businesses with abnormal activity, the feds take action. I had to file with BBB to get satisfaction from AHS, they then said it was a mis-understanding. HA
Do not get the extra add on for the washer and dryer. For what you pay for the contract and the co-pay and non covered parts, you can buy a new washer or dryer
I bought this house and it is about 19 years old. It passed inspection, however I knew the A/c and Water heater were orginals and needed work. First the Water heater went out and I paid $60 co-pay to AHS plumber then another $183 for “Not covered” parts. So with the contract price of $300 for the year I could have just bought a water heater at Home Depot for $200.
Next the a/c stopped working. I am in Florida and it was 90 in the house at night. FOR 11 days. It took them 11 days to fix the a/c. The a/c guy said ” NO way” I would fix this if you called me, the a/c needs replacing but AHS would only authorize a part be replaced. He gives it another 6 months before he is out to fix it again.
The class action lawsuit was thrown out by the judge, He did not agree with the settlement terms and the case seems to be in “Forever limbo” now.
After purchasing my home I incurred certain breakdowns in my appliances. Microwave, I couldn’t get a straight answer from the company, all they wanted was the $90.00 service call fee. My microwave went out and I didn’t want to pay them the service fee and they weren’t going to buy me a new one. so I chose to replace it on my own. My alarm system I called them out, paid the $90.00 fee and to my dismay I was told they couldn’t fix it I had to call the company that installed the system; which resulted in a loss to me. They did put refrigerator door seals in which was another $90.00. I would advise anyone that’s considering AHS Home Warranty Contract to think again; even though I inherited it with my home. I am still waiting for the Edleson class action lawsuit because I wants to be made whole.
DO NOT USE AHS – complete waste of money. Here is an account of the events leading to denial of our AHS claim for replacement of our heat pump system. Our home warranty policy with AHS became effective 8/13/2007, following settlement on our home 8/10/2007. Prior to settlement, our home inspection was completed by a certified home inspector. In our inspection report we were told that while older, the heat pump system was in working order. When the weather began to get cold at the end of October, we discovered our heat was not working. The temperature in our home did not increase when the system was on. On Monday, October 29 we contacted a service repair technician to inspect our system and diagnose the problem. We were told we needed to replace the entire system. The contractor quoted us $4,875 to replace the system with a 3 (three) ton Trane heat pump (13 SEER) and handler (including new piping/lines and digital thermostat). Next we contacted AHS when we learned that this problem might be covered under the home warranty policy. We requested a service call and were told it would be completed by their contractor; however, they were not able to come to our home until Friday Nov. 2. The technician came out and also told us the system needed to be replaced. The technician said the claim likely would not be covered by AHS. After filing his report with AHS, the technician handed over the phone for us to speak with and AHS representative. AHS said it would not be covered and our only recourse was to contact both our realtor and home inspector for assistance. We were subsequently contacted by phone by the contractor’s office, who quoted it would cost $6,153.65 to replace the system with a 4 (four) ton Rheem heat pump (13 SEER) and handler. The breakdown of charges was $5,656.52 parts & labor, $497.13 for piping/lines. We paid the contractor $55 for the service call as required. After speaking with both our realtor and inspector, we were given 3 additional names of contractors to contact for quotes on replacing the system. We contacted one of those, who came out that same night (Friday Nov. 2) to inspect our system. He also indicated we needed to replace the system, and quoted us $4,800 for a 3 (three) ton American Standard heat pump and variable speed air handler. This was the best system at the best price of the three that we had been quoted, so we decided to go ahead and have him replace the system at our cost (since AHS had indicated it would not be covered). He told us he would come out on Tuesday November 6 to install the new system, and he did just that. In the meantime, on Monday evening we again contacted AHS to discuss the claim, since we now had 3 separate contractors telling us we needed to replace the system. We could not understand why this would not be covered by our warranty. We spoke with 4 representatives at the 800 number. First, we were told the claim would not be covered because the system “had not been properly maintained” and needed a “cleaning” which was not covered by the warranty. We asked to speak with someone to dispute this, and were transferred to another department. The person we spoke with was very unfriendly and argumentative, and we indicated that if AHS was not willing to reconsider the claim, we would have to cancel the contract. He informed us we would be transferred to the Customer Retention Department, however we were transferred back to the main menu. After explaining the entire situation to yet another representative, who then transferred us to Customer Retention, we requested to speak with a supervisor or someone who had the authority to cancel the contract. We spoke with “Belinda” who agreed to cancel the contract and refund our $55 service call fee based on our dissatisfaction and frustration with the entire process.
On Tuesday November 6, 2007 we contacted our realtor to inform her of the situation, and she was very upset and indicated she would call AHS since “they have always had a good standing with their office.” After speaking with the AHS District Supervisor on several occasions and having had her speak directly with the contractor who installed our system, we finally received a message from the Distrct Supervisor’s assistant indicating some money for reimbursement would be taken from their “marketing budget.” When we returned her call she told us a check for $1,200 was being issued to us and should arrive in 2 weeks. It did, but still did not cover the full amount ($4,800) of our replacement. We will NEVER use AHS and don’t recommend anyone else does either!!!
I have had the same problem as everyone else..AHS are crooks..we won’t get anything, no monies for repairs, no satisfaction, no money from any lawsuit, the only thing from AHS we got, is being screwed by this company..and it appears that no one cares except the people who lost the money. Our goal should be to talk to everyone who is buying a home and tell them to NOT accept the AHS warranty, because they will be ripped of..we need to spread the word. CNN would be a great resource to get the word on on this rip off company. The people they have contracted with for the so called repairs, are stupid and only come out to bleed us dry and to lie to us. The real contractors state it like it is and say to stay away from AHS..I want a real lawsuit. I had the same problem that Maria had and I live in Tucson…and Khursheed..my coil was dirty and ruined my furnace and A/C…and I had only bought the place alittle over a year prior and had a home inspection…my complaint is no different than anyone elses. Does anyone know what is going on with the lawsuit that was filed a few months ago?? my email address is waskets5@yahoo.com if anyone knows anything….
AHS warranty is the biggest scam going in the same category as Madoff!! Totally bogus warranty. My AC stopped working so they sent “excaliber” service (aptly named for a scam) who did not even open the unit but told me the condensor had a hole in it & that they would get a new one within a day to replace it. To my surprise the next day i got a call from AHS denying coverage claiming my filter was dirty. I took photos of the filter to show them that it is replaced every month, i have a carton of them in the basement for this. Oh okay they said, we’ll get a second opinion, up shows another rip off artist who wants to know what the first guy said.. which i of course did not disclose. He huffed and puffed that his testing equipment had not worked for the past few days then being at a loss to diagnose pointed to a pipe at the bottom of the AC saying oh this is damaged no wonder it doesn’t work. Okay fix it, oh no can’t be done as this is improper maintainance. Well the AC unit sits outside, is covered up each winter, is near a wall so no one can even walk near it to damage it. I have had several calls to ask to speak to the CEO whom they say may only be reached via mail and A P.O.BOX address nontheless. Upon insistence i am told to have my lawyer contact them. Yup 90degreees out and i am going to wait till winter to get this resolved.No way, if i don’t hear back by tomorrow i am going to CNN to expose this scam!!!
I live in Phoenix, AZ and it is Hell here during July and August, but am happy to say and believe that with the service AHS gives its customer, the CEO and staff of AHS will be going to hell themselves.
I actually had an AC repairman tell me, after his third visit in one month, the following: “You need a new AC. I will put in a request because your contract states if we can’t fix it, they will replace”. Now this happened after I had AHS for about three years. What did AHS say/do….well they contacted the repairman and told him, “fix it”. He came out and said, “I’m sorry, but you and I are going to see alot of each other, because AHS says the unit be “fixed”, and it can…for about a month, and then I will see you again”. AHS is a rip-off. I wonder if if Mr. AHS himself has a problem with his AC. I truly hope they get theirs. Outcome: cancelled my contract, told them to keep their two $35.00 vouchers they wanted to give me to stay with them, and my whole family sweats alot during the summer….
I have so many issues, it’s difficult to choose only one. I will simply list here the major ones.
In 2005, in August, the AC went out. We had a 5 ton unit, they replaced it while we were not at home. Only it was replaced with a 3 ton unit. AHS states the repair company told them it was a 3 ton they hauled away. The repair company has conveniently “misplaced” the record of service. Now, because the outside turbine is the wrong size, we have issues with the unit on a constant basis. All one has to do is look at the original foot print where the old unit sat, to see the one we have now is MUCH smaller.
The plumbing in our house started acting up. The repairmen came out to “fix the problem”. After several lame “repairs” the problem still persisits. AHS told us it was a blockage outside of the home and not covered. The problem is UNDER the house and therefore under the contract IS covered. They deny it.
Our undermount microwave started over heating, and the lights and the turntable stopped working. Instead of replacing the unit, they decided to try and repair the existing one. It no longer over heats, but the lights still do not function. Also, after adding up what the cost of repairs were, and doing some looky loo shopping, the replacement would have been almost $160.00 cheaper!!
Also, when our water heater went out, the unit was replaced, but they charged me more then $200.00 to get the area “up to code”. How did that become my problem?? If it is not up to code,then they should be responsible for fixing it.
Lastly, I had to make SEVERAL phone calls to AHS in order to tell them to not send repairmen from a certain company here where I live. This company has a terrible reputation for laziness and shoddy work. Don’t they do ANY research on the companies they contract??
Do not buy AHS warranty. Their advertising is misleading you to think that you will be covered, when in fact when something does break down they often find a way to deny the repairs.
There are thousands and thousands complaints about them on the web. I signed a conract with them 2 months ago and now I regret about it. Do not repeat my mistake.
When my Air Conditioning unit started leaking and flooding my neighbour downstairs I called AHS to request service. An AC contractor came the next day, inspected my AC and identified the problem – leaking collector pan. He charged me my 60$ deductable and told me to wait for AHS authorization. I asked him how much these repairs would cost me if I had to pay myself, he said $500 – $800. At that moment I was so glad I had AHS. How naive I was…
Few days after AHS called me and told me that they did authorize the repairs, but since that collector pan was no longer manufactured, they would have to install a different one, and in order for it to fit they would have to do some “modifications”, for which I would have to pay $725.
I tried to explain them that I did not request any modifications, and even if they are required to repair a leaking AC they should not be my problem and responsibility. I bought a warranty, then my AC which is covered under that warranty started to leak, why do I have to worry about how they should fix the leak? If for some reason they cannot repair my AC then they have to replace it. That’s why it is called “warranty”! Why are they asking me to pay $725, what kind of “peace of mind” is that”?
Now I see that AHS is a rip off. Some people warned me, I should have listened.
We have been without AC for 10 days now. We live SE of Houston, Texas and it is more than HOT! WE called on a Sat. and was told to call on Mon. (So much for the 24 hour service). We called AHS Mon. and was told the contract company would call us and set up a time to send a serviceman out. Mon. the local service company called and said a repairman would be sent on Tues. Tues the repairman comes out and says the problem is a loose wire. The AC still did not work. The next day we call the local company and they send out a different repairman. He said the motor was working at half capacity. He replaced it and said it would take 2-3 hours to cool the house. The next morning it was 85 degrees at 6 AM and rising. We called the same local company again and the third repairman said the compressor needed to be replaced. He called AHS that Wed. AHS said the part was on back order and would arrive Mon. or Tues (5-6 days). On Mon., today, I called the local company to see if the part had arrived. No, it had not. I then called AHS to inquire about the status of the part. After speaking with 2 people I was told the part was not ordered. But they assured me that the part would be shipped out today and would arrive tomorrow. Whether we can get it installed tomorrow or Wed. it will be 11-12 days without air in 98-104 degree heat. We bought a small portable AC unit that has helped but at a cost of $325. We’ve made several calls to AHS and the home office in hopes of correcting this problem. I am still waiting.