Arizona AG’s Office reaches $1.75M settlement with warranty company
Mar 6, 2021, 2:00 PM
PHOENIX — The Arizona Attorney General’s Office has reached a $1.75 million settlement with a home warranty service for misrepresenting its “expedited services” policy.
The settlement, which was announced in an AGO press release on Thursday, said that Landmark Home Warranty told its customers they would resolve their issues with air conditioner repairs in an “extreme temperatures” an expedited manner.
The issue, according to the AGO’s release, is the home warranty company defined “extreme temperatures” in a way that was impossible to reach.
“When home warranty companies make promises to consumers, they better deliver, especially when it comes to air conditioning repairs during the Arizona summer,” Attorney General Mark Brnovich said in the release. “Our office will continue to pursue companies who engage in these types of practices.”
As part of the settlement, up to 26,000 customers in the state that used Landmark will receive a total of $1 million in restitution, the release said.
The “extreme temperatures” that Landmark referenced required that the low temperature be 100 degrees or more, or that the temperature stay at 100 degrees or higher for 24 hours straight, according to the release.
As a result, the AGO said that nearly half of Landmark’s customers had to wait more than a week for a company-selected technician to inspect their AC systems.
The $1 million restitution sum will be spread out to Landmark’s customers, with anyone that used the warranty service between 2017 and 2019 receiving $25 or more from the office, the AGO release said.
The office will release contact information for a claims administrator that will be tasked with handing out the restitution money to customers that qualify, according to the release.
As part of the settlement, Landmark must also pay $750,000 in civil penalties and are forbidden from advertising their expedited services in the state for the next five years.