ED Magedson – Founder
American Home ShieldCarroll, Iowa United States of America
Pattern of behavior constituting consumer fraud
12/09 AHS enhanced home warranty contract purchased. I paid $488.00 in monthly debit installments of 40.67.
Beginning April 2010 through October 2010 in excess of 15 service calls and four different "authorized service Contractors" came to repair the covered air conditioning unit and it was never repaired properly. We remained with out air-conditioning for the majority of the summer. In June, I was told HMS was contracted to put in a" new " condenser coil. The work was not completed until June 9 and did not fix the problem, in fact a "new" coil was not replaced but rebuilt. On June 12 Meyers Air Conditioning and Heating LLC, an "authorized service contractor" was sent to repair the unit and they determined the unit needed a new evaporator coil. With that I received a call from an AHS representative indicating $650.00 worth of "code upgrades" a float switch, duct work and auxiliary drain pan were needed to be done that were not covered by the warranty. They would not provide a second opinion and only offered a "cash out" and hire some one myself. The cash out did not cover the cost of the repairs. I continued to indicate that code upgrades were not necessary to install the evaporator coil. In fact, Meyers never did the "upgrade work" and what they did do did not repair the air conditioning unit. AHS is well aware of the "out of contract" quotes given by their "authorized service contractors" and creates the situation which allows both of them to perpetrate this fraud. If the work had not been called "code upgrades and duct work" the repairs would have been covered under the contract. The authorized contractors are well aware how to manipulate the system set in place by AHS and create costs to the consumer which directly benefits them. This scam was then run a second time when Cahaba Contractors ordered a new condenser and refused to install it until I paid a disposal fee of $150.00. Again a fee outside the contract. The unit was not properly repaired and another "authorized service agent", Valiant came out and replaced a part that Cahaba had incorrectly installed. I had to pay a $60.00 service fee. The air conditioning unit again failed and Valiant returned. This time the problem was the "duct work" and I was told that AHS should never had paid for anything because the wrong duct work is installed in the house. He wanted to charge me $750.00. AHS then took the position that this work fell outside the contract and they were not obligated to repair the unit pursuant to the warranty. This is the same scam new players perpetrated by AHS and its authorized service contractors.
I filed complaints with the AL Attorney Generals office and the heating and air conditioning licensing board.
I finally hired a reputable company, which repaired the unit and had to re do the work of Meyers. I paid out of pocket $656.00.
AHS continued to say they were not liable but to "settle the matter" they would reimburse me $741.12 representing the cost of repairs, return of the service fee and the balance of contract fee of 25.12 less an administration fee. I demanded the return of the cost of the contract and to cancel the last month of service with them. It has been their position that I am not entitle to a refund pursuant to their contract even though AHS breached the contract, did not provide the services and continues in a pattern of behavior which defrauds the consumer. It is a numbers game, they pay off the complainers but still get to keep the premiums
This report was posted on Ripoff Report on 12/08/2010 10:56 AM and is a permanent record located here: http://www.ripoffreport.com/r/American-Home-Shield/Carroll-Iowa-51401/American-Home-Shield-Home-Warranty-Plan-Consumer-Fraud-Carroll-Iowa-669383. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.
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