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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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9 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!

  • MFMauceri says:

    AHS is a coordinated institutional failure driving people to the boiling point I fear an active shooter will show up at their HQ at some point.

  • Cheryl says:

    This is not a warranty it is a rip off. You are charging me $75 for a service fee and then $700 to fix a water heater you replaced 17 months ago.

  • Hilda Lam says:

    I am a realtor, American home shield came to my old company every month to promote how good they are and I believed them. Even after I moved to another company, I still recommended american home shield to my buyers and have them for my new home as well. Our AC stopped working today, we called AHS, they told us they do not send
    contractors on weekends… On a day it is 110 F outside and rising swiftly inside to unbearable conditions, we must wait until 3-6 pm Monday- three full days from now for the AC company to evaluate the problem. It could be days after for the repair to be made. After reading the entire contract, there is no mention of a blackout of service on weekends. What the contract does state is ‘loss of cooling…is an emergency as defined by the Nevada Revised Statutes…service will commence not later than 24 hrs after the report of the claim.’

    After years of referring AHS, I will never recommend American Home Shield to any clients in the future.

  • asskickmcgee says:

    Warranty and insurance companies #1 priority is do not pay out. #2 is reduce pay outs.

  • Barton E Pulverman says:

    AHS IS A SCAM! EVERY Monday, I get a call saying we are past due. Every Monday they discover that we paid a year in advance. Every week they say they will notify the manager of the error, but the Monday calls have continued like clockwork. Today, I asked to speak directly to the manager. I was put on hold where it was promptly announced that THE WAIT WOULD BE AN HOUR BECAUSE OF THE PANDEMIC. Since AHS never had a call center and always had work at home people, IT IS OBVIOUS THAT THEY HAVE USED THE PANDEMIC AS AN EXCUSE TO ELIMINATE A LARGE AMOUNT OF THEIR STAFF TO REDUCE COSTS. I am filing a complaint with the California Attorney General and urge all other customers to do likewise.

  • Neal says:

    American home shield is an absolute SCAM!!!! Our refrigerator went out a month ago A FUCKING MONTH AGO!!!! And these con artists still haven’t gotten it fixed.. we have also been waiting for the stove to get fixed.. now they saying they will replace it a month later and god knows if they ever will come!!! This warranty is completely fraud, bait and switch, and utter negligence. IF YOU WASTE YOUR MONEY WITH THESE CON ARTISTS YOU DESERVE TO BE SCAMMED! This company needs To be shut down it is now couple weeks into august and still nothing! Fuck american home shield.. i will Never recommend them to anther person again!

  • Dee Meadows says:

    They are definitely a scam. They won’t let you cancel. I was told when I signed up I could cancel anytime and it was free. That was a lie. After being on hold for 45 mins then being transferred to the cancellation dept after 3 days of this it was finally cancelled ( I think ). They don’t answer the phone so you can’t cancel and will just give up. They just emailed me a statement and are charging me a month administration fee when I was told it was Free to cancel. They lie and tell you anything to get you to sign up. I should have known it was too good to be true. Don’t anyone use them please!

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