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American Home Shield Scam: Home Warranty Company is Called a Fraud

Over the past few months, Consider The Consumer has gotten numerous complaints about the American Home Shield Corporation, an American home warranty company which administers home service contracts on major home systems and appliances. The company serves 1.4 million customers across the country and is one of the largest home warranty writers in the United States, receiving about 2.5 million service requests each year. After receiving these complaints, we looked into the company a bit, and have noticed that our readers were not the first to call out the potential American Home Shield scam.

A client, when reaching out to us, informed me of the following: “I pay a monthly premium on two houses and have had appliances repaired and replaced. Typical time from reporting the malfunction with one of my appliances to actually getting it replaced and or repaired is 55 Days. Average wait on the phone to report a malfunction is 2 hours! Not very consumer friendly. We have not had a refrigerator since just after Christmas last year!” This same client has now been 30 days without a refrigerator and is holding The American Home Shield Company directly responsible for this misfortune.

Furthermore, after some research, we have found that the company is less than outstanding in other areas of their craft – and their Better Business Bureau profile reflects this. Within the last week alone, we have gathered these following comments:

“Expensive & Untrustworthy a. This company touts so much about online portal. Why is there is no link to cancel your contract online? Why is there no link on how to cancel your contract in FAQs? and Why is there no option to select cancel when you call their 1-800 number? b. Cancellation fees – customer shall be responsible for an administrative fee of the lesser of (i) your Plan Fee for one month of coverage under this contract or (ii) such amount as is permitted by law. – what does this mean? When you are advertising those plans – why are you not letting customers know what that cost is? . – Every repair guy I got when I called this company told me plain blank that its a waste of money to rely on them. Its cheaper to get the repairs done thru local repairmen. Save your money and avoid dealing with them.”

“I paid $75 for a contractor to incorrectly diagnose a leaking pipe. He said there was a foreign object blocking my laundry room drain pipe in the wall, which was not covered under the warranty. I spoke with a supervisor who offered to send out a second contractor for another opinion, but that would just waste everyone’s time again if they’re still not going to cover the fix or the water damage to my home. When we removed the pipe from the wall, there was a big chunk of ice in it, which is also not covered under the warranty. I will not be renewing and have informed my realtor.”

“HORRENDOUS company to deal with. I’ve had their warranty for going on 6 years without a claim. Tried to have some broken outlets fixed and they spent over an hour trying to convince me that my contract didn’t cover wiring. After literally cornering the customer service representative into reading the language that excluded wiring while I had my contract in front of me, she gave in and acknowledged that wiring was in fact covered and that they are simply not responsible for the costs associated with accessing the wiring. Because there wasn’t a problem with the access to the wiring (all the wiring runs in the exposed ceiling of my basement) she finally gave in and agreed to send the electrician back out to complete the repairs.”

These reviews are, unfortunately, just 3 of many, many horrendous reviews. In fact, American Home Shield holds an astonishing 96% negative review rating on the BBB website.

American Home Shield Scam Consider The Consumer

If you have had problems with this company, we ask that you reach out to us immediately and let us know your story. If it turns out that this is, in fact, a scam, or a rip-off, or anything of the sort, we will be seeking legal action on your behalf. It is quite possible that a strong class action defense can set this “company” straight.

If you, a friend, or a family member, has had any issues with this American Home Shield scam, please contact us immediately. We can be reached via Email at ConsiderTheConsumer@gmail.com, or you can find us on TwitterFacebook, or even connect with us directly on our website! We look forward to hearing from all of you, and finally putting this scam to rest!

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2 thoughts on “American Home Shield Scam: Home Warranty Company is Called a Fraud”

  • You should take a look at Facebook. Search for “I hate American Home Shield” or “American Home Shield Class Action group.

    • Vivian says:

      Yes, for disgusted people like us who go to Facebook for any help we can get on the company’s Facebook page, I came across this “I Hate American Home Shield” page. That page alone will show you countless complaints. I have successfully cancelled but not after having them for over 10 years!

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