The Impact of Home Warranty Scams and Unwanted Calls

In the recent past, homeowners in states including Texas, Oregon, and Maryland have been the targets of a new wave of home warranty scams.

These deceptive practices often take the form of text messages informing homeowners their home warranty has expired, urging them to renew it promptly.

However, numerous red flags become apparent on closer examination, such as vague company names, claims of affiliation with your mortgage company, and registration in a state other than yours.

Unraveling The Scams

These messages can cause confusion and concern among homeowners like you.

An increase in such activities indicates a need for vigilance and awareness. While a home warranty certainly isn’t synonymous with homeowners' insurance, it could be considered a practical protective measure, especially for older homes.

Generally, home warranty plans cover major home appliances and systems such as your HVAC or refrigerator. So, it can be a financially sound choice, potentially saving you from hefty repair or replacement costs.

The Unwelcome Calls

In a related segment of the home warranty industry, companies such as First American and FiveStrata have recently agreed to settle for $700k due to alleged breaches of the Telephone Consumer Protection Act (TCPA). These companies were accused of making illegal calls to thousands of numbers on the national “Do Not Call” list.

The Court found the settlement to be fair. The companies in question, however, still need to navigate the increasingly complex regulatory environment.

Legitimate Home Warranty Plans

It’s important to remember, amidst this chaos, that legitimate home warranty companies do exist and can provide valuable peace of mind.

Multiple reliable resources like Forbes, Bankrate, and Money rank top home warranty companies for consumers like you. These plans can ease the financial burden of unexpected home repairs or replacements, counterbalancing the risks posed by scams and unsolicited calls.

Though the situation described paints a mixed picture, the key takeaway for homeowners like you is to stay informed, vigilant, and maintain due consideration for legitimate home warranty plans as a means of safeguarding against costly repairs.

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