AG Brnovich Files Consumer Fraud Lawsuit Against Home Warranty Company

PHOENIX - Attorney General Mark Brnovich announced his office filed a Consumer Fraud Lawsuit against Choice Home Warranty for allegedly making false promises to consumers who purchased a home warranty policy. The lawsuit alleges Choice Home Warranty collected millions from Arizona consumers, but used contract exclusions, payment caps, and bad-faith refusals to avoid paying for repairs.

“Arizona consumers buy home warranties for protection and peace of mind, but no one wants to end up fighting for coverage,” said Attorney General Mark Brnovich.  “If a home warranty company promises full and timely repair or replacement of appliances, they’d better deliver, especially when someone’s A/C breaks in the middle of summer.”

According to the lawsuit, Choice Home Warranty promised to protect consumers against the "high cost" of unexpected repairs for appliances like refrigerators and air conditioning units. In reality, contracts excluded refrigerators and air conditioning units. Contracts also contained a $1,500 cap on CHW's payment and a $500 cap for plumbing issues. The complaint also alleges Choice Home Warranty promised "24/7 customer service" that was "swift and timely." However, one consumer was forced to wait four days in the summer heat for a technician to inspect their broken air conditioner, and then the company refused to pay.

Choice Home Network is a New Jersey-based company. The State’s lawsuit, filed in Maricopa County Superior Court, seeks consumer restitution, up to $10,000 in civil penalties for each violation of the Arizona Consumer Fraud Act, injunctive relief, and attorney’s fees and costs.

Unit Chief Counsel Matthew du Mee and Assistant Attorney General Bryce Clark of the Consumer Protection and Advocacy Section are handling the case. 

If you believe you have been the victim of consumer fraud, you can file a consumer complaint by visiting the Attorney General’s website. If you need a complaint form sent to you, you can contact the Attorney General’s Office in Phoenix at (602) 542-5763, in Tucson at (520) 628-6648, or outside the Phoenix and Tucson metro areas at (800) 352-8431.

Full copy of the Consumer Fraud Lawsuit.