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State: Home warranty firm used deceptive practices

7-28-14

NEWARK, N.J. (AP) — State officials say a central New Jersey company that sells home warranties used deceptive tactics to refuse consumers’ claims for product repairs or replacement.

Consumer affairs officials announced Monday that they have filed a complaint against the CHW Group, an Edison-based firm that does business as Choice Home Warranty. It seeks restitution, civil penalties and other damages.

Officials say the firm induced consumers to buy “comprehensive” coverage for various appliances and home systems, then used numerous tactics to deny claims. This forced customers to pay out-of-pocket for air conditioning, refrigerator or other repairs that allegedly should have been covered under their warranties.

A company spokesman said the firm was working with its lawyers to resolve the issues.