The Real Deal Miami

Cuomo sues National Home Protection for cheating customers

April 27, 2009 01:26PM

New York Attorney
General Andrew Cuomo is suing National Home Protection for a deceptive
home warranty scheme that allegedly cheated consumers nationwide out of
hundreds of thousands of dollars.

The New York-based National Home Protection sells yearly
home warranty plans that include promises to repair or replace
consumers’ household systems and appliances that break during the
contract term.

An investigation by the attorney general’s office found
that the company allegedly failed to honor the warranties, canceled
customers’ plans for no reason and didn’t honor its advertised offers
for free $50 gift cards for each contract year customers signed up for.

The attorney general’s office received more than 340 complaints against
NHP from at least 32 states, including New York, and more than 950
complaints have been filed with the Better Business Bureau.

Cuomo was
granted a temporary restraining order freezing the bank accounts and
other assets of the company and principals, which prevents the company
from selling any more of its home warranty plans out of New York.

The lawsuit seeks to permanently prevent NHP from operating in New York until it registers with the state Department of Insurance and demonstrates proof of financial responsibility. Cuomo is also seeking restitution and damages for consumers. TRD