Syracuse (WSYR-TV) - A home warranty company very familiar to Your Stories viewers is being sued by the Attorney General for selling bogus policies and misleading customers.
The AG froze all of National Home Protection’s assets, so customers who got ripped off, can hopefully at least get back some money.
National Home Protection was pitching a warranty to cover things like appliances, sewers and septic systems -- items a normal homeowner’s policy wouldn't. The problem is, when customers called in with a claim, they were ignored.
We spoke with one woman who paid nearly $400 for a one-year policy. She got a confirmation from the company that a furnace repair would be covered, but three months later, still no check.
The AG's office says National Home Protection also cancelled customers plan's for no reason, and never delivered on $50 Home Depot gift cards they promised for signing up.
The company has been shut down for the time being and banned from selling again in New York until their problems are settled and they register with the State Insurance Department.
If you signed up for a home warranty through National Home Protection, file a complaint with the Attorney General's office.
At this point, that's likely the only way you'll be able to get restitution, since all the phone lines for the company have been disconnected.
Attorney General press release: April 27, 2009
NEW YORK, NY (April 27, 2009) - Attorney General Andrew M. Cuomo today announced that his office has filed suit against National Home Protection, Inc. (NHP), a New York City-based company, and three principals, Leo Serrur, David Seruya, and Victor Hakim in New York Supreme Court in Manhattan for a deceptive home warranty scheme that defrauded consumers in New York and across the country out of hundreds of thousands of dollars.
The Attorney General also applied for and was granted a temporary restraining order freezing the bank accounts and other assets of the company and principals, and preventing NHP from selling any more of its home warranty plans out of New York pending further order by the Court.
“This company denied homeowners’ legitimate claims, deceived consumers with false advertising, and ultimately ripped off customers who paid good money to protect their investment,” said Attorney General Cuomo. “This was an ongoing fraud that systemically cheated consumers across this country.”
NHP sells yearly home warranty plans that include promises to repair or replace consumers’ household systems and appliances that break during the contract term. However, the Attorney General’s investigation into the company revealed that, more often than not, the company failed to honor these warranties and routinely denied customers’ valid claims for fraudulent reasons.
The investigation also uncovered other fraudulent practices by NHP, including canceling customers’ home warranty plans for no reason and failing to honor advertised offers for free $50 gift cards for each contract year customers signed up for. The Attorney General’s office has received more than 340 complaints against NHP from consumers in at least thirty-two states, including New York, and more than 950 complaints have been filed with the Better Business Bureau.
The Attorney General’s lawsuit charges NHP and its principals with making multiple misrepresentations and deceptive advertising, including claims that NHP would replace customers’ systems and appliances “regardless of age, make or model” with “no home inspection required to enroll.”
It also charges NHP with fraudulently failing to honor its home warranty plans and deceptively advertising that consumers would receive a free $50 gift card “today” when, in fact, that gift card was a rebate offer subject to undisclosed and restrictive wait periods. Even those consumers who complied with the wait period routinely did not receive the gift card.
The lawsuit also charges NHP with violating New York state laws by failing to:
● Register as a service provider and provide proof of financial responsibility to the State of New York Superintendent of Insurance
● Provide consumers with a rebate check within sixty days of receipt of consumers’ proper requests for redemption
● Provide a rebate form on its Internet site
● Offer refunds in accordance with New York law
Attorney General Cuomo’s lawsuit seeks to permanently prevent NHP from operating in New York State or, in the alternative, cease its operations until it registers with the New York State Department of Insurance and demonstrates proof of financial responsibility. The Attorney General also seeks restitution and damages for aggrieved consumers, penalties and costs.
Consumers with complaints against National Home Protection are urged to contact the Attorney General’s Consumer Frauds hotline at 800-771-7755. New York consumers may also contact their local regional office. Contact information about the Attorney General’s regional offices can be found online at www.oag.state.ny.us.
April 17, 2009:
“National Home Protection” a bust: The Real Deal
Syracuse, New York (WSYR-TV) - A home warranty is supposed to cover problems your homeowner’s insurance policy does not. But what happens when you can’t get through to the warranty company to get them to pay up? That’s exactly what’s happening to folks who purchased policies online from a company called National Home Protection.
Pat Drennan is having problems getting reimbursed by National Home Protection. The appliances in her home are starting to age, so she thought a home warranty through the company was a pretty good idea. She paid $386 for a one-year policy.
“The heating, the electrical, the plumbing, I even added the septic on,” Drennan said.
When her furnace went out in January, she didn’t think twice about calling in a claim. She was supposed to pay the first $45 for the repair, then National Home Protection would come up with the remaining $287. The company agreed when she called in the claim and gave her a confirmation number.
But Pat’s been checking her mailbox everyday for the past three months and still no reimbursement check.
“It’s pending, it’s pending, pending and you keep calling, and you get no one,” Drennan said.
And today, when you try to call National Home Protection, you get a recording.
It’s not a good sign, especially because National Home Protection is being sued by the Attorney General in Texas and the Insurance Department in Arizona. They have more than 1,000 complaints against them with the Better Business Bureau, and didn’t bother to return any of our phone calls or emails.
“It’s the biggest fraud I’ve ever seen in my life,” Brennan said. “It’s terrible, and I’m sure a lot of people have gotten this plan and didn’t realize it until they have to file that they’re not going to get paid, they take the money and go,” Brennan said.
Pat wants a full refund, but would be happy with a check to cover her furnace repairs. She’s not expecting either, but at least feels somewhat better by warning others to watch out for this company.
National Home Protection also promised customers who purchased new policies a $50 gift card to Home Depot. We’ve spoken to a few people, including Pat, who say those cards never came.
