Home warranty solutions provide financial protection for appliances and systems that break down over time due to normal wear-and-tear. In addition, they save on emergency repair expenses; it’s essential that you select a reliable company with efficient services at reasonable prices.
Avoid companies that employ intimidating language or rush you into signing their contract terms; also look out for any hidden fees or extra costs that might pop up later. Cinch Home Services gives you the following advice.
Scam letters
Home warranties provide coverage against repairs or replacement for certain appliances and systems in the home, but scammers can use them to dupe homeowners into purchasing unnecessary coverage at a high cost.
News 8 On Your Side has heard from several viewers regarding receiving letters informing them their home warranty may soon expire or has already expired. These letters often claim to come from mortgage companies or county deed records offices; however, these organizations don’t exist.
Home warranty companies must register with state regulators and comply with regulations, such as providing contracts that list what coverages do and don’t exist clearly and understandably. If you believe a home warranty company is trying to scam you, contact your local or state attorney general’s office and report them; the office will take up your complaint and publicize it so other consumers don’t fall prey to similar scams. Alternatively, reach out to Better Business Bureau or review sites like Angie or Consumer Reports for support.
Scam calls
Home warranty companies can be an invaluable service to homeowners. But companies employing high-pressure marketing tactics or using intimidating language may be scams; customer reviews of any prospective warranty provider should also be read before signing a contract with them. Also be wary of companies listing exclusions or coverage limits in fine print as well as charging service fees for their contracts.
If you receive an unsolicited phone call or letter from a home warranty company, contact your local law enforcement and state attorney general’s offices immediately so they can take reports and inform the community about potential scams.
Before signing a home warranty contract, it’s a good idea to speak with a representative from the home warranty company and inquire about their claims process, service fees and hiring practices – plus anything else important to you – and then make an informed decision based on these specifics about whether a home warranty suits your needs or not.
Scam offers
Home warranties can be an invaluable service to homeowners. But signing a plan from an untrustworthy provider who hides fees, breaks promises or hires unreliable contractors could end up costing you dearly. Before signing any contracts with these providers, check them out online using consumer review websites like Better Business Bureau, TrustPilot or Consumer Reports; any company with numerous customer complaints should raise red flags.
One common home warranty scam involves sending homeowners letters purporting to come from their mortgage company or county records office, even though this information is publicly available. Scammers then claim the homeowner is financially liable without a home warranty policy and threaten that their current coverage may end. Oregon, Tennessee and Connecticut have posted examples of such letters on their respective websites – these scammers also employ scare tactics with an urgent tone so as to appear legitimate.
Scam companies
Homeowners who believe their home warranty companies have scammed them have recourse. They can file complaints with the Better Business Bureau and state attorney general offices as well as checking online reviews to see if multiple reliable sources have flagged it as suspicious.
Scammers employ numerous tactics, all with one goal in mind – creating urgency. A popular scam tactic is sending letters on official-looking company letterhead stating that a mortgage lender has taken control of a home warranty or that you face imminent foreclosure; these may even include county deed records as evidence.
Avoid companies that make it hard or impossible to cancel contracts. This is particularly concerning if customers pay with credit cards which may be protected against fraud by banks’ fraud departments. If homeowners can cancel the warranty contract successfully, they can receive their money back as refund.
