#20
Fri, December 14, 2001
They filed the following rebuttal to the above Rip-Off Report: Their email: [email protected] Their name: CS Their relationship to the company: Consumer Suggestion Rebuttal: In my opinion, and in the opinion of many others who've tried to get service, home warranties ARE a scam. It is rare than anyone gets what they thought they paid for when they bought the policy or when it was offered by a builder. Here's how they make sure they don't have to honor the contract: Deceptive and illusory wording of the policy that takes attorneys to decipher, and you often don't get the actual policy til you've closed on the house when buying a new warranteed home. Arbitration which takes away your constitutional right to sue, or appeal the decision, and often comes with a gag order so you also lose your right to free speech. Arbitration is not public record like court records, so keeping the records private, and forbidding the homeowner to talk about it hides complaints from the public, making it appear there ARE no complaints. Warranty companies usually hand-pick the arbitrator, plus arbitration is expensive, and you will still need a lawyer because the warranty company will have their attorneys. Warranty companies operate much like insurance companies but they escape many states Dept. of Insurance by calling themselves "Risk Retention Groups." Property owners possessing a warranty policy can expect endless stalling, excuses, and denial from Home Warranty companies. There are many complaints here on the Rip Off Report about these warranties. You can read other horror stories on www.hadd.com and www.hobb.org to name just two.