CUOMO SUES NATIONAL HOME PROTECTION, INC.

Attorney General Andrew M. Cuomo today announced that his office has filed suit against National Home Protection, Inc. (NHP), a New York City-based company, and three principals, Leo Serrur, David Seruya, and Victor Hakim in New York Supreme Court in Manhattan for a deceptive home warranty scheme that defrauded consumers in New York and across the country out of hundreds of thousands of dollars.

The Attorney General also applied for and was granted a temporary restraining order freezing the bank accounts and other assets of the company and principals, and preventing NHP from selling any more of its home warranty plans out of New York pending further order by the Court.

“This company denied homeowners’ legitimate claims, deceived consumers with false advertising, and ultimately ripped off customers who paid good money to protect their investment,” said Attorney General Cuomo. “This was an ongoing fraud that systemically cheated consumers across this country.”

NHP sells yearly home warranty plans that include promises to repair or replace consumers’ household systems and appliances that break during the contract term. However, the Attorney General’s investigation into the company revealed that, more often than not, the company failed to honor these warranties and routinely denied customers’ valid claims for fraudulent reasons. The investigation also uncovered other fraudulent practices by NHP, including canceling customers’ home warranty plans for no reason and failing to honor advertised offers for free $50 gift cards for each contract year customers signed up for. The Attorney General’s office has received more than 340 complaints against NHP from consumers in at least thirty-two states, including New York, and more than 950 complaints have been filed with the Better Business Bureau.

The Attorney General’s lawsuit charges NHP and its principals with making multiple misrepresentations and deceptive advertising, including claims that NHP would replace customers’ systems and appliances “regardless of age, make or model” with “no home inspection required to enroll.” It also charges NHP with fraudulently failing to honor its home warranty plans and deceptively advertising that consumers would receive a free $50 gift card “today” when, in fact, that gift card was a rebate offer subject to undisclosed and restrictive wait periods. Even those consumers who complied with the wait period routinely did not receive the gift card. The lawsuit also charges NHP with violating New York state laws by failing to:

Register as a service provider and provide proof of financial responsibility to the State of New York Superintendent of Insurance.

Provide consumers with a rebate check within sixty days of receipt of consumers’ proper requests for redemption.

Provide a rebate form on its Internet site.

Offer refunds in accordance with New York law.

Attorney General Cuomo’s lawsuit seeks to permanently prevent NHP from operating in New York State or, in the alternative, cease its operations until it registers with the New York State Department of Insurance and demonstrates proof of financial responsibility. The Attorney General also seeks restitution and damages for aggrieved consumers, penalties and costs.

Comments

  1. Why are they still operating as of this date 5-4-2009?.

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  2. I am one of the many customers in the State of Florida that have fall for this big scam and signed a multi year service contract. The latest is that NHS is not paying the service provided by their contractors and the contractors are threatening customers that already paid for their service. Since they can not get a hold from NHS (after sending certified letters, phone calls) they are going after the customers, although customers like myself has paid the service as stipulated in the service contract. My question: How the customers in the state of Florida could be represented in this lawsuit?

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  3. FL customes are on the same boat. How FL customers could join the NY lawsuit?
    I would like my 5 year contract back!!! Plus the payment to the contractors that contact me threatening to a lien on my property!!! This has to stop

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  4. I am a NHP customer in Maryland who fell prey to this scam. I have been trying to get in touch with NHP all week about my broken AC unit and today (5/21/09) I call their 800 number and it seems to be disconnected! Is there anything I, as a Maryland resident, can do as part of the NYS lawsuit is concerned?

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  5. i am one of those contractors in florida rec authorizationand did the work was never paid very unfair , i am not going after any cust they have been scammed also

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  6. Call the NY attorney General office and become apart of the lawsuit.
    http://www.oag.state.ny.us/media_center/2009/apr/apr27a_09.html

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  7. I own a electrical and HVAC contracting company in Texas and performed thousands of dollars worth of authorized work for NHP. My company never received payment for any of it!

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  8. I signed my original contract with National Home Protection 3 1/2 years ago for my condo in Las Vegas, but I didn't have an occasion to use it until recently (April 2009). The vendors they told me to contact wouldn't come out due to lack of payments and the one that did come out admittedly didn't know anything about the type of heating unit that needed report. How do I join this lawsuit?

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  9. I called NHP back in May, phones disconnected, no reply to e-mail, then read about NY suing NHP. I had no problem with them in 2008, except when contractor came out and told us he was ready take action for non payment here in the Dallas area

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  10. I am one of the customers who fell for this as well. I am insulted by this lawsuit because i PAID THIS COMPANY $2200 AND WHEN THE suit was one my Cuomo, I only got $24. Are they kidding me? Did the attorny's office get all the money and I was slapped with this amount?

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