Arizona Attorney General secures $11.8 million settlement against Choice Home Warranty
Arizona's Attorney General reached an $11.8 million settlement with Choice Home Warranty over allegations of consumer fraud and deceptive sales practices.Summary
Arizona Attorney General Kris Mayes has secured an $11.8 million settlement against Choice Home Warranty, a New Jersey-based service contract company, resolving a consumer fraud lawsuit. The judgment, entered on January 23rd, requires the company to reform its sales practices and provide clearer disclosures to consumers before selling warranties. The lawsuit stemmed from over 1,500 complaints from Arizona customers since 2013, alleging failures to cover appliance repairs and misrepresentations by sales representatives. Choice Home Warranty previously faced a similar investigation in New Jersey in 2015, resulting in a $780,000 settlement. While the company denies wrongdoing, it has agreed to the financial settlement and will reimburse Arizona for legal costs. Eligible customers who purchased warranties between January 1, 2013, and January 1, 2023, may receive restitution, with details on eligibility and application to be released by the Attorney General's Office at a later date.
(Source：Abc 15)