First American Home Buyers Protection Scam Alert.
This complaint has been filed to FTC, CA State Attorney General, BBB, California Department of Insurance and will continue to alert other consumers on Blogs and Websites.
I have a contract #10286496701 with First American Home Buyers Protection (First American HBP), 2250 Apollo way, suite 200, Santa Rosa, CA 95407-9118. Their website: https://homewarranty.firstam.com/Default.aspx
On 4/2/2011 the First American HBP gave us two work orders: One for plumbing (DRAINEX ROOTER) due to ceiling water leaking in my bathroom, and another order (M K CONSTRUCTION) for the electric fan located under the leaking ceiling and damaged by the above water leaking. They said they granted the two work orders if the ceiling leaking is the cause for the fan damaged. If they did not fix the ceiling, then the fan would damage in the future.
On 4/2/2011 an employee from DRAINEX ROOTER & PLUMBING CO.(http://www.drainexplumbing.com/ ) came to my house, promised to fix the ceiling on the next day and gave us another service agreement to sign, then asked for $55. We wrote the check (#1913) and signed the agreement. However, they broke the contract and have never come back. The ceiling still is leaking.
On the next day only M K Construction fixed the fan. We paid another $55 (#1914).
Since the water leaking is not fixed and it will continue damage the fan, we reminded the First American HBP about the leaking. They gave us another work order for plumbing by another company, the HOME WARRANTY PLUMBING AND ROOTER.
Yet, after inspection this company told us it is not covered under the home protection policy. And they sent us another bill service fee $55 for work order #602474707 and use collection agency.
Please notice it is the same ceiling that has two work orders within one week. And according to their policy, consumers have to pay a total three bills of $55 * 3 = $165: One for electric and two for water leaking; even though they denied to fix the ceiling. And the fan would continue to be damaged.
I believe it is a scam. Consumers have to pay annual fee for $432 and extra $55 for any work order. It does not matter if the work order is performed or not, good or bad, complete or incomplete. It is not like insurance company and deductible. However, the First American HBP do not make clear such weird policy to their consumers.
Because the First American Company failed to make a clear statement that consumers have to pay extra fee for any work order whether it is performed or not, good or bad, complete or incomplete, and because the Drainex Company broke their promise, and took $55 for nothing to exchange. I believe they committed a scam. Their policy violates US basic fairness and justice.
I believe that basic fairness and justice for any contract requires both parties have to exchange something. Consumers should pay extra service fee $55 only if the work order is performed. No repair nor service performed, then no an extra fee. It is not fair for a service man come to a house, do nothing, and receive extra $55. It is ok to deny the service, but still taking extra fee for denial is unfair and unethical. Please alert and protect other citizen from this scam practice.
We just receive a letter from First American HBP. They canceled the charge for the second plumbing, but still charge $55 for the unperformed plumbing of DRAINEX ROOTER. That means they still take our $55 for the work order unperformed.
Please visit my website for more info. I collect public opinion about Home Protection Scam.
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