Some Arizonans who purchased home warranty services from Landmark Home Warranty will receive compensation as a result of a consent agreement intended to resolve claims against the company for its “expedited services” policy from 2017 to 2019.
Up to 26,000 customers from 2017 to 2019 may be eligible for up to $1,000 and will receive at least $25 out of the $1 million in restitution the company must pay as part of the agreement.
According to the Arizona Attorney General’s Office, in Landmark’s contracts it promised that it would “make reasonable efforts to expedite service within 24 hours” when a consumer suffered a complete loss of air conditioning in “extreme temperatures.” The Attorney General’s office alleges that Landmark defined “extreme temperatures” in a manner that was impossible for consumers to satisfy from 2017 to 2019.
Landmark allegedly instructed its employees that unlike other states where Landmark operated, “extreme temperatures” for Arizona only existed if the low temperature was 100 degrees or more, or if the temperature has been over 100 degrees for 24 hours straight. Neither condition has ever existed in Arizona’s recorded history, according to the Attorney General’s Office.
Landmark’s own records show that in summer 2018 and 2019, about half of Landmark’s Arizona customers requesting air conditioning service had to wait over a week for a Landmark-selected technician to even examine the air conditioner.
The consent agreement, pending court approval, further requires that Landmark pay an additional $750,000 in civil penalties and prevents Landmark from advertising expedited services in Arizona for the next five years.