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AHS (American Home Shield) Class Action Lawsuit

By
Industry Observer with RETIRED / State License is Inactive Inactive License Oregon

gavelAHS is a very popular home warranty company.  I've used their warranties, bought them for clients, written them into Buyers' Repair Addenda, and have recommended them for years.

In today's mail I received a 10-page document outling the SETTLEMENT of Karon and L.B. Chip Edleson, Plaintiffs vs. American Home Shield of California, Inc., et al., Case No. 37-2007-00071725-CU-BT-CTL.

In part:

----------------------------------------------------

Notice of Class Action and Settlement:

To: All person (natural or legal) in the United States who purchased or were issued any Home Warranty Contract from AHS during the period beginning on July 24, 2001, up to and including the date on which the proposed Settlement is preliminarily approved by the Court (the "Class" or "Class Members").

----------------------------------------------------------

Apparently, AHS denied claims that were supposed to be covered. 

OOPS!

A "Fairness Hearing" will take place April 24, 2009 at 10:30 before the Honorable Steven R. Denton, Superior Court of California, San Diego County, Dept. 73

To quote further: "The Court has not ruled on either merits of the claims against AHS or AHS's defenses, to those claims, nor has it made a final determination of the matters to be considered at the Fairness Hearing."

III. Background of Claims . . .

". . . The Complaint alleges that American Home Shield engaged in a pattern and practice of failing to fulfill its contractual obligations to its customers, including by declining to provide repair and replacement services that its customers were entitled to under the terms of their Home Warranty Contracts.   . . ."

It goes on, and on (it's 10 pages!) but you get the gist.

Apparently, there will be a "Claims Review Desk" set up, and AHS will review a "settlement class member who wishes to submit a denied claim by contact AHS at 1-877-433-3843, logging on to www.EdlesonClassAction.com or sending a writtten request to Class Action Claims Review Desk. P. O. Box 727, Carroll, IA 51401."

 

Posted by

 

 

Carla Muss-Jacobs has RETIRED effective May 1, 2018

Representing Buyers in the Portland Metro Real Estate Market | Clackamas Multnomah and Washington Counties | Since 1999

Carla Muss-Jacobs, REALTOR®, ABR, CEBA, ePro
Principal Broker/Owner ~~ INACTIVE

Carla Muss-Jacobs' retirement became effective May 1, 2018

Direct: 503-810-7192 

 

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Comments(125)

Anonymous
Matt H. Iowa

My wife and I purchased our home in Sept of 2007 it was our first home. We were so excited and when we saw that the home had a low voltage system for the lights we were concerned but both AHS and the Realtor reassured us that it was covered and if there was problems just to call. Of course two months after purchasing the house all the lights in house were stuck on. We called AHS and it took seven days because they were sending an electrician from Illinois or Ohio to service our need. When the man got to our home all he did was bang on the box in the basement for an hour and talk to some one on the phone for 2 hours and then told us he could not fix it. The problem was one of the switches was stuck. That was episode one. Episode two our garbage disposal stopped working completely. I called AHS again they sent a plumber out after almost 10 days of waiting once here he looked at the disposal for about 10 minutes and again was on the phone for over an hour with AHS and told us there was nothing they could do for us since it was related to the low voltage system. Plus they charged us tax on the copay and expected a copay for doing nothing for us. I called AHS about this and they said they would refund the copay.....they never did even after multiple phone calls to them. Now I replaced the switch that ran the disposal and still it did not work. Only after replacing the disposal (like my orginial call claimed was the problem) did the disposal work. I am not saying that AHS is satans spawn of business because they did do some good work for us but 2 episodes out of 3 claims not good odds. Plus there customer service needs plenty of help but so does about 2 million businesses in the US need to learn this lesson as well.

 

Jul 12, 2011 02:06 PM
#122
Anonymous
DGFSBI

American Home Shield can be a bit shady sometimes.  I had a second refrigerator serviced once with AHS with no problem.  The second time I called for service on my second refrigerator I was denied the services; they told me I was not covered.  I reminded them that they had serviced my second unit on a prior request but said they were not supposed to do that.  ???????????

Aug 18, 2011 08:25 AM
#123
Anonymous
Texas
Ahs total bs what it should be, since I moved in my house we had several problems with our ac but the worse was last year in 2011 in August. Our ac went out for the 4 time and took several weeks to fix it. The first company that came out showed up around 1030am and discovered that the condenser was located in the attic he smiled and said sorry son but it's too hot to be in your attic you would have to reschedule your appointment to be a 8am. The second company came out and laugh as I told him this information however he found the part that was damage and said it shouldn't take too long to get the part in we will order it NDA. Two days later I called the company and ask what was the hold up and they said they are waiting on AHS to approve the part. I called AHS and informed them of the situation and like most questions you get from then is this an emergency? I told the lady the display on our digital themomenter 101 degrees obviously it's a emergency call we can't stay in our house, however they didn't seem to care because 3 days later the ac company finally arrive to replace the part took over a week I told AHS this was inexceptable and the response I got from the lady was sir my ac went out and I had to deal with it so can you. After the part was installed the foud a leak and need to replace the air handle another week went by and 600 dollars later we got a new air handle however the new air handle didn't match the condenser so another 600 dollars later (the 600 dollars was for updates for the new unit by the way) and a week later a whole new brand new air system that went out 8 months after the installation due to the improper install by the company which said this is what AHS provided us this is all what we can do. I didn't renew my contract with them and reported to the better business bureau. And if you think I'm making any of this up come in stop by I'll show you all my warranty work.
Jun 06, 2012 11:24 AM
#124
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

@Texas -- some of the issues you had weren't from AHS but from the contractors.  Anyone not wanting to go up in to the attic is not an AHS issue. That said, if the company did an improper install then you should be contacting them and file a complaint with the contractors board in your state.

Jun 06, 2012 11:37 AM
Anonymous
Kimberly Williams

WARNING NEVER DO BUSINESS WITH THIS COMPANY.
Our air conditioner died. Yeah, it's August and it's hot but I have a home warranty for the past 4 years through AMERICAN HOME SHIELD that covers the replacement when something is irrepairable.  Yea for me, right?  WRONG! They are refusing to honor our contact because the technician deemed the damage to the compressor was caused by a power surge.  The unit has blown 2 capacitors, a blown connector and a blown fan relay since March of this year so it's had a history of electrical problems. Their contractors have just been replacing them instead of resolving the root cause.  Never the same technician and rarely ever the same contractor so there is zero continuity in the service they provide and now they are refusing to replace by HVAC unit.  I'm so frustrated I could spit. 

 

Aug 02, 2012 03:16 AM
#126
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

Kimberly Williams -- Not sure where you're commenting from (i.e., what state), but check out your state's Attorney Bar Association website to see if they have a Lawyer Referral program.  In Oregon, the Oregon State Bar has a nice program for something like this and it's a $35 consult fee (last time I checked).   If your state has a referral program, briefly explain the situation and ask for a referral.  Maybe a contract lawyer?  Might be worth it.  You probably have a small claims matter, but an attorney might be able to help you get the legal issues ironed out, might be able to tell you if you have any recourse, and they may suggest you to file in small claims.  Most jurisdictions do not allow attorneys to plead on behalf of the plaintiff, or defend on behalf of the defendant -- which I personally think is a crock of hooey.  I mean, when people go to COURT why can't they have an attorney represent them??  Someone who knows the law is important when in court, and I don't care if it is "small" claims court -- if you lose because some bozo judge didn't like the way you parted your hair -- that's a judgment and it has major (legal) implications (just me on my soap box -- sorry). But most small claims courts just don't allow that.  I think it's terrible -- but that's just me. 

Aug 02, 2012 04:54 AM
Anonymous
Lars

I've had AHS and they are the worst, they denied coverages that were clearly printed in black and white in the contract. I am an insurance agent and I told the company that partnered with AHS that I would never ever sell one of my clients one of these garbage policies, since 2004 I have never sold one.

Sep 10, 2012 09:08 AM
#128
Anonymous
The Newmans
This review is lengthy and could be longer, but this is a true, honest experience we have had with AHS. We have had this service since we bought our home in 2002 with a brief 6 months back in 2005 when we didn't have them. We have called them out every summer for 12 years, sometimes twice and have called them out in the winter time as well. They send someone to do patch work on the ac units, we have two units in our home and both have had issue but the main unit is the one that has issues constantly. This past Tuesday, we came home to a hot house. We are in Texas and its already hot here! I called AHS and spoke to a very rude agent...I was rude too afterward. I pay this bill every month for 12 years and pay every time someone comes out. They sent a company out on Wednesday. The company that came out stated it was the coils and it would need replacing as well as leaks etc. but the coils were clean. He then gave us a sales pitch for a new unit that they could install. We have kept this service for all of this time because we knew and they knew that these units are going to need replacing, not just patching up. And by the way, our electric bills in the summer run between $400 and as high as $1000 before. Our units are 1997 units. On Thursday, we received a call from AHS stating that our out of pocket will be $1500 and $600 of that is the freon, it uses R22. They stated that the company normally charges $60 per pound of freon but they saved me money by only charging $50 per pound!!! I asked them what are they paying for and how much they are paying but they claimed to not have that information. And to add salt to this, they said we could do a cash out and find our own repair person and they would pay us what they would have paid the company that gave us the estimate....that amount is $620 but you only get it when you submit the receipts showing the repairs have been done! I asked about canceling my service because I just bought all new appliance for the kitchen and laundry so I really don't need their service if they aren't going to pay for a new ac unit. They told me I would have to pay cancellation fees and penalties....my contract end June 26, 2014! We have wasted so much money with this company, the rates have gone up every year and the service fees have to. I also didn't mention that we had them to come out a few years ago to replace out garbage disposal, the guy comes out. uses a broom, it worked all of 3 days, I called AHS back and they said they would not send anyone else out nor fix it! We let that slide thinking our home was otherwise protected...NOT! If an item is covered under warranty and it breaks, how can you charge for the repercussions of the non functioning item, i.e. FREON! Look all over the internet, complaint after complaint about AHS and HVAC systems and they always find a loophole to not replace!
Apr 27, 2014 09:21 AM
#129
Anonymous
JAMES ARMBRUST
WE WOULD LIKE TO JOIN A CLASS ACTION LAWSUIT AGAINST AMERICAN HOME SHIELD, BUT WE DON'T KNOW HOW. OUR AIR CONDITIONING UNIT WAS REPAIRED BY AHS AND THE TECH PUT IN THE WRONG CAAPACITER. THAT WAS SEVERAL YEARS AGO. SINCE THEN, WE HAVE HAD NOTHING BUT TROUGLE WITH THE UNIT, BUT AHS REFUSES TO TAKE RESPONSIBILITY AND REPLACE A UNIT THAT SHOULD HAVE BEEN SCRAPPED A LONG TIME AGO. AHS WILL REPLACE ANYTHING THAT CANNOT BE FIXED IF IT IS UNDER A THOUSAND DOLLARS, BUT THEY BALK AT AN AIRCONDITIONING UNIT. NOW THEY SAY THAT THEY WILL CASH ME OUT FOR $1900.00 AND WASH THEIR HANDS OF THE WHOLE THING, OR, THEY WILL GIVE ME THE SAME AMOUNT TO PAY FOR A CRANE TO LIFE THE OLD UNIT OFF THE ROOF AND PUT THE NEW UNIT ON, BUT THEN WE HAVE TO PAY FOR THE UNIT. THEY CHANGE THE STORY EVERY TIME WE CALL THEM. IN THE MEANTIME, WE ARE MOVING INTO 100 DEGREE WEATHER, AND WE ARE IN OUR SEVENTIES, LIVING IN LAS VEGAS. WE CAN'T AFFORD AN ATTORNEY UNLESS THEY TAKE THE CASE AND GET PART OF WHAT WE GET. I UNDERSTAND THAT THEY RARELY FIGHT LAWSUITS AND SETTLE OUT OF COURT? IS THAT TRUE.
May 14, 2014 08:59 AM
#130
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

Dear James - AHS did not put in the wrong part in your A/C unit.  AHS did not fix anything.  They are a home warranty company and they provided you with a home warranty.  The HVAC tech seems to be the one who did faulty work, and it seems to me that the HVAC tech who actually performed the work is the one to seek redress.  They are licensed contractors.  Contact your state licensing board, and see if you can file a complaint with the HVAC contractor.  

I am not an attorney.  Always seek legal advice.

May 14, 2014 02:38 PM
Anonymous
LindaG

I would also like to join a class action against AHS relative to a/c fraud alone. They advertise that they will replace the unit, but do everything but live up to their advertised lures. After paying in for many years, we hate to sacrifice all that money by dropping them now...but lawsuit, yes. We could have bought and paid for a new unit with the money we paid out by now.

Feb 25, 2015 06:30 AM
#133
Anonymous
Grafixer

I also would like to join a class action against AHS - due to poor Heat Pump servicing, illegal installation of a junk condenser that fell apart and increased my electric bills for several years, cost me regular "call fees", and now is being "replaced" - with add-on costs of over $2500. Their "cash out" is $1483 - and several times they stated that is what they are paying the contractor. The additional costs are inflated and include items that are not required, and one that had to be done PRIOR to getting the unit - which is the lowest end Payne SEER 13 that can be found. I've been an AHS customer for 11 years, and have spoken to my attorney. They have copies of each year's warranty and are looking into other class actions being filed. If anyone has one going, please post here, and we'll work together! These people need to be stopped. Customers are not allowed (AHS RULE?) to get a second cost on "add-ons". But AHS sure does get multiple contractors to bid on THEIR end of the work. In addition, one of the costs clearly is not an "add-on" but clearly is AHS's responsibility. That alone is $375. Let's get together and stop this from happening to other people.

Apr 03, 2015 03:21 AM
#134
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

Oh, wow.......so many unhappy customers and I'm afraid.....I became one of them. It is true. AHS is selling policies and trying hard not to perform any service. And I agree with above comment: they hire the worst of the worst vendors who are not afraid of all negative reviews.

Aug 17, 2015 01:06 PM
Anonymous
rws68

I had similar experience with AHS. My realtor purchased the policy for me when I bought a foreclosed home in CA. I turned in about 5 or 6 claims and AHS first denied every claim, often trying to use the "normal wear and tear" insuring agreement as an exclusion and other times completely misconstruing their contract language. I first tried talking to the claims people in Iowa and got nowhere. I then contested every claim to corporate and the CA Insurance Department pointing out what AHS's policy said and how their policy actually said it covered my claims. As soon as I "cc'd" the Ins Dept and corporate, they paid every claim and then non-renewed my policy. I had an advantage because I'm a retired Litigation Manager that helped draft policies for an insurance company in another state. I implored the CA Ins Dept to investigate what I believe is their fraudulent claims practices, but it doesn't appear they have. I'm confident if my past company had handled claims the way AHS does we would have been found in bad faith in that state. I'vhttps://drive.google.com/folderview?id=0B_iPSO7W1xKffm1vNm5pN1ktODNxU0ZJXy1ZYjhjUVF0UWgzUHdjaGluWmNzZDI5MEtPUWM&usp=sharinge placed my redacted documents/letters on Google drive for any help they might give .

Aug 24, 2015 03:21 AM
#136
Anonymous
Mike Dworek

Same old Story with AHS We were denied Claim on AC Unit Replacement after they put bandaids on it for years due to improper Service and Installation Yeah right. Then they say the Vendor will replace Unit at reduced cost! of 4800. Looks like they have done this to many customers in past We gave them time to make it right No good. BBB Complaint. AHS finally calls and says they will send out another Vendor for 2nd opinion Weeks later Well Way too late we had to replace unit out of pocket and Tenants had to stay in Hotel Las Vegas 110 plus Summer. They are now moving out after being great Tenants Cant help but think the added stress of what they dealt with this Summer didnt help things What can we do now except find an Attorney? We live in FL Rental Home is in NV Sad that you pay a company in good Faith for 15 plus years and when time comes they dont honor their contract and find an unethical way to get out of paying It seems like another Class Action Lawsuit is neccessary Sad

Oct 08, 2015 05:29 AM
#137
Anonymous
Gwen Shangle

Getting ready to take AHS up on a "buy out" over a very bad and wrongly handled AC situation. Have State attorney watching (GOP-owned and may not come through), State Congress friend, and my local attorney watching. We will see.
The wording of the contract makes it impossible to settle out of court.
My advise to ALL OF YOU is to contact an attorney early on, and document everything.
I have. And, I'm being assured that, they will pay the fee their contract states, and... if they refuse... they will also pay attorney's fees and damages. At this point, the DAMAGES ARE MORE THAN THE AC REPLACEMENT FEES. (This has gone on for years now.)
DOCUMENT. CONTACT AN ATTORNEY. THIS IS THE ONLY WAY YOU WILL BE ABLE TO TAKE THEM TO COURT.
In the meantime, pay your monthly membership. If you don't, it will be more difficult. As an existing customer, they have to continue to adhere to their/your contract. There are now 9 attorneys in Florida that are building cases and all are coordinating with the State. If you are in Florida... document everything. AHS must be held accountable.

Oct 08, 2015 09:27 AM
#138
Anonymous
Tracy Chapman-Smith

I would also like to join a class action suit. I have been an AHS customer for more than 11 years. I have only called them out for minor problems 3-4 times over the years. This summer my AC went out, they sent a vendor that day that seemed to correct the problem. Then when my AC was not cooling anymore I called them back out a couple of weeks later. The vendor did not show up 3 days in a row. I had to takes these days off of work to be home to met them. I called AHS and asked to send a vendor who would actually show up. The second vendor stated the AC unit outside and coil inside needed to be replaced. AHS contacted me and stated they were going to replace the entire unit. After hearing nothing for over 2 weeks I kept calling AHS and the vendor to see when I would have air again. In the meantime I had to purchase a window unit to try and keep at least part of my house cool. The vendor kept telling me they sent the paperwork to AHS and have not received an approval. I kept calling AHS every 2-3 days and was told, we didn't receive the paperwork from the vendor and we are waiting for the new unit to arrive. It is now October and they sent out a new vendor yesterday to give a second opinion on repairing it!!!!! They made me suffer the last 6 weeks of summer with no air and now the new vendor is stating it's cooling??? It's only in the 60's outside now, of course it can keep the house at 72 degrees!! Very frustrated. I'm at the point were I don't need air right now. I don't know if I should just cancel them or keep them and wait til next summer for hopefully repair or replacement. It might just be a complete waste of time, maybe I should just cancel them now and cut my losses!

Oct 09, 2015 03:19 AM
#139
Anonymous
Matthew Share

If anyone knows of a class action suite currently going on (Nov. 2015) please let me know. My washing machine started making horrible grinding noises and vibrating so badly that it literally walks out of the laundry room - tugging on the drain line and pulling it from the wall to present a risk of flooding my home if I use it. 2 AHS assigned technicians came out to look at it and stated that they can't find any specific part they can replace that will fix the problem - yet one of them advised me "not to use the unit until it is fixed". AHS is refusing to pay the claim because they say that the technicians did not state that they found a fixable problem. I fee that it should not be my concern. I have been paying for a warranty that is supposed to cover my washer with no exceptions. I now have a washing machine that has broken and can't be used and they are leaving me hanging - having to absorb 100% of the cost of replacement PLUS pay the copay for them sending their idiot contractor out who says it can't be repaired. I went online in 5 minutes and found several youtube videos of technicians making the same repair successfuly on my same unit by replacing the balance ring and vibration pads. When I tell the AHS technicians this they say mine is a different problem but yet they can't fix it and AHS claims it is not broken because they didn't document a part being broken, etc. This is pretty black and white to me: I paid for a warranty that covers the washer. Now, I have a broken washer. They should repair or replace it with no exceptions and they are breaching their contract with me and refusing to supply me with a properly functioning washing machine. I obviously can't afford to take them on and get a lawyer for a single $500 washing machine but this has class action suit written all over it and I will be more than happy to provide documentation to help with one if there is a lawyer out there who wants to take this on on behalf of all of the thousands of consumers who have likely suffered damages from false denials by AHS. I did have a slightly better experience in the past with Old Republic (though still not perfect). I regret switching companies.

Nov 07, 2015 03:55 AM
#140
Anonymous
Jame B.

I live in California and having the same problem with these clowns. My washer also making a loud sound called AHS, they sent a technician out. He indicated the motor was gone, and would need to find a replacement. Waited a few days called AHS, come to find out his truck broke down and he would not be able to fix the machine. AHS sent another tech out, he indicated motherboard was gone and machine would need to be replaced. It's now been 31 days, according to AHS he has not submitted the paperwork. Their customer service department is the worst. It is clear they're reading script when responding to complaints. Moving forward, I will be sure to do my due diligence before selecting a home warranty company.

Mar 22, 2016 02:00 PM
#141
Anonymous
Nicole vogt

Going on 3 months now me and my mother in law having a washer has not been working, AHS sent a guy out a few weeks after the claim was submitted who replaced the belt he said it was fixed, I go to wash clothing after weeks of waiting to my suprise of my laundry room smoking so bad smelt like burned rubber smoke so thick you could not see in the room, they send the same guy back out almost 3 weeks later who said the belt needs to be replaced again and that the transmission is bad, what was going on is the washer was making loud noises on the scrub cycle would not use the fabric softer cup would stay fill, it would not drain the water out all the way, and the washer would not spin at all while on the spin cycle, Seco d time he comes out he said that's do to the transmission and belt, AHS waits a few weeks before sending out a different guy the 3rd time this now being over a month no washer for him to say it's the motor the pump the transmission and yup needs a new belt again, weeks go by again no word from anyone calling AHS no response other then they are trying to locate parts 2 full months later they say they can't find the parts so need to replace the whole washer, now going into 3 months they don't contact saying anything we contact them and same excuse they are waiting in the department that handles the replacement claims in a comparable replacement before they can for fill the claim 3 weeks now it's taking them and still using the same excuse no response yet that's their excuses 3 months no washer while they keep billing for services and not repairing anything, they take your money and don't do anything they have no word but keep saying they need to wait for that department to give a price on a new washer claim. About to contact a lawyer and find out about getting a refund on me paying monthly services and the $85 fee for having the repair man come out they charged me, and claiming 2 months out of going on over 2 months almost 3 of having to use a laundry matt, and find a comparable washer in price and model replacing it my self and suing them for the money back.

Sep 26, 2016 03:03 PM
#142