Attorney General Mayes Announces $11.8 Million Settlement with Choice Home Warranty

Largest settlement with home warranty company in Arizona history

PHOENIX – Attorney General Kris Mayes today announced that she has resolved her office’s long-running consumer fraud lawsuit against Choice Home Warranty, a New Jersey service contract company operating in Arizona and throughout the country.

The judgment entered with the Arizona Attorney General’s Office on January 23, 2026, requires Choice Home Warranty to reform its sales practices and to provide meaningful disclosure to consumers prior to selling warranties. Choice Home Warranty has also agreed to pay $11.8 million.
 
The Arizona Attorney General’s Office filed a consumer fraud lawsuit against Choice Home Warranty in 2019 after being inundated with consumer complaints alleging that the company failed to replace air conditioning units and other home appliances it had advertised as being covered.
 
These practices were detailed in various news reports by local stations in Arizona and throughout the country. The lawsuit against Choice Home Warranty gained new life once Attorney General Mayes came into office, and quickly became a focus of her office’s efforts to address consumer fraud targeting homeowners and Arizona seniors.
 
“Choice Home Warranty allegedly misrepresented the coverage provided by their warranties and pocketed millions of dollars from Arizonans, particularly veterans, senior citizens, and others living on fixed incomes,” said Attorney General Kris Mayes. “Businesses cannot hide behind fine print and hidden disclosures to exploit our most vulnerable consumers. This conduct is unacceptable and will not be tolerated by my office, even if it means fighting scammers and fraudsters for years on end. We don’t quit.”
 
Since 2013, more than 1,500 Arizona customers have submitted complaints against Choice Home Warranty to the Arizona Attorney General, the Arizona Department of Insurance and Financial Institutions, and to the Better Business Bureau. These complaints illustrate the scope of the harm allegedly caused by the company and their false coverage claims.
 
Customers frequently reported that Choice Home Warranty’s telephone sales representatives failed to disclose various exclusions and limitations that undermined the value of the warranty product, or had outright misrepresented what repairs or replacements their warranties would cover. Choice Home Warranty and the executives operating the company were previously investigated by the New Jersey Attorney General for their business practices, resulting in a $780,000 settlement in 2015, but their conduct seemed to continue even after that settlement was reached.

Choice Home Warranty denies the allegations made by the State and has not admitted any wrongdoing as part of the settlement agreement. 
 
Choice Home Warranty customers who purchased a warranty over the phone between January 1, 2013 and January 1, 2023 to cover a home located in Arizona may be eligible to receive restitution. Consumers do not need to file a complaint with our office.

The Arizona Attorney General’s Office will release additional information at a later date regarding eligibility, including where and how to apply. Restitution will be distributed by the Arizona Attorney General’s Office once adequate funds are received from the settlement.

Assistant Attorneys General Mitchell Allee, Stephen Silverman, Dylan Jones, Suzanne Pendergast, John Dillon and the Consumer Protection and Advocacy Section handled this case.

The Arizona Attorney General’s Office extends its sincere appreciation to the Better Business Bureau of Arizona, the attorneys at the law firm of Gallagher & Kennedy, and the many Choice Home Warranty customers and Arizona contractors who assisted with this litigation. 

If you believe you have been the victim of consumer fraud, you can file a consumer complaint with the Arizona Attorney General's Office. 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.

A copy of the consent judgment is available here.