The NJ Division of Consumer Affairs is suing an Edison-based company called Choice Home Warranty (CHW Group, INC). The company’s logo, “Never Pay for Covered Home Repairs Again!” is practically false advertising due to the fact that the company would deny any request for warranty-holders. Attorney General John Hoffman is charging the company with consumer fraud due to the fact that the company would either claim that they did not have any records of the consumer or simply giving a false reason to why they cannot make the repairs.
If the company were to make repairs, their “prompt service,” was also proved to be false. Contracted technicians had often refused to make repairs because the company was failing to pay their workers. There are about 16 complaints to the division from unpaid technicians.
Twenty-five states had filed a lawsuit to the Superior Court in Middlesex County for violating the consumer fraud act. The 116 complaints from states include New Jersey, New York, Pennsylvania, and as far as Nevada and Texas.
Hoffman is continuing the lawsuit due to the fact that the division had received complaints from 25 states and he wants to “prevent further harm to consumers.”
The company released a statement as a response to Hoffman’s pursuit, “We are disappointed that the state has chosen to file this lawsuit. We unequivocally dispute the allegations, intend to vigorously defend against them, and are confident that we will ultimately prevail,” Choice Home Warranty continued, “Choice Home Warranty has fielded thousands of warranty claims from our customers, resulting in claims payments of tens of millions of dollars. In fact, many of the complaints referred to by the Attorney General’s office, were resolved long ago, to the satisfaction of the consumer.”
The company also decided to post several positive testimonials on their website, choicehomewarranty.com.
The acting director of the Division of Consumer Affairs issued a statement, “The Division alleges that Choice Home Warranty refused to provide the basic services that consumers were paying for, and pocketed the money paid by consumers. Such deceptive practices will not be tolerated in New Jersey.” The lawsuit is targeting Victor Mandalawi, Victor Hakim, and David Seruya, current or former heads of the company.
Consumer frauds are not something that businesses should especially be getting away with. It can harm you and maybe even others currently and/or in the future. If you feel that a company is scamming or cheating you from your consumer privileges, report it to the consumer affairs.
Livio, Susan K. "Edison Home Appliance Warranty Company Accused of Fraud by N.J. Attorney General." NJ.com. The Star-Ledger, 28 July 2014. Web. 30 July 2014.