Warranty Company Facing Possible Action from Texas AG
When FOX 4 started investigating, we found more than just angry customers of National Home Protection. We also found the New York City based company is not licensed to do business in Texas. The Texas Real Estate Commission ordered the company to cease and desist back in early 2007, and has demanded the company stop selling home warranties in Texas. But the company never responded, according to TREC attorney and Assistant Director of Enforcement Beverly Rabenberg.

Warranty Company Facing Possible Action from Texas AG
Monday, 22 Dec 2008,
- When Von Brown

- When Von Brown’s dishwasher stopped working, he called his home warranty company. Brown thought he purchased “peace of mind” when he signed up with National Home Protection.   After all, that’s what the company advertises. Instead, Brown says he received “nothing” and “a lot of frustration.”

Tony Maniche sums up his experience with National Home Protection with two words: “horrible” and “frightening.” “It makes me not want to buy another one,” says Maniche.

“It put a lot of stress on us,” says Lou Rodriguez. “It was just horrible.” Rodriguez says he had to dip in to his retirement funds to replace his air conditioner. The cost set him back nearly $4,000.

Rodriguez found National Home Protection on the internet. On its website the company promises “no home warranty company is more dedicated to providing outstanding service.” But Rodriguez says NHP wouldn’t return calls, put him on hold, and didn’t respond to numerous emails.

The company denied his claim based on “pre-existing conditions” and “failure to maintain the air conditioning unit.” The company also stated it “must adhere to the terms and conditions” of the service agreement. But Rodriguez had six years of preventive maintenance records he faxed to the company. He says no one at NHP would further explain why his claim was denied. “It was horrible,” Rodriguez told FOX 4. “I would not want to with this on anyone.”

When FOX 4 started investigating, we found more than just angry customers of National Home Protection. We also found the New York City based company is not licensed to do business in Texas. The Texas Real Estate Commission ordered the company to cease and desist back in early 2007, and has demanded the company stop selling home warranties in Texas. But the company never responded, according to TREC attorney and Assistant Director of Enforcement Beverly Rabenberg.

Rabenberg says the law requires warranty companies to be licensed by the state so the Commission can review contracts and ensure Texas consumers don’t get ripped off. She also says the complaints against NHP continue to pile up.

“We can request they stop but if they don’t stop then we have to look to the statute to see what other penalties and action can be taken,” Rabenberg told FOX 4.

Von Brown actually had three appliances break. NHP covered nothing, claiming the appliances had pre-existing problems.

When Tony Maniche’s oven broke, NHP offered him a buy-out of $155. He still doesn’t know why. With the cost of the repair and the warranty, he ended up in the red. “The money that I ended up spending on this, I could’ve bought a whole new stove and oven for what I went through,” Maniche told FOX 4.

When FOX 4 called NHP as a potential customer in Texas a company representative said they could sell us a warranty. But when we asked about the unlicensed activity, for this report, no one wanted to talk about that and didn’t return our calls or respond to our letter.

The Texas Real Estate Commission has turned its investigation of National Home Warranty over to the Texas Attorney General’s Office for prosecution. The company could face criminal and civil penalties. FOX 4 has also learned the New York Attorney General has contacted Texas consumers for information.

Brown, Maniche, and Rodriguez all say they would never have done business with the company if they had known it was not properly licensed. Beverly Rothberg says to always make sure a home warranty company is licensed, read the fine print so you know what parts and services are covered, and file a complaint if you have a problem with a home warranty company.

Click here to verify a home warranty company license in Texas.

Click here to file a complaint against a home warranty company.