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Home warranty company unlicensed to sell in Oklahoma faces legal action

Home warranty company headed to court after not cooperating with OID.
Home Warranty Company Unlicensed to Sell in Oklahoma Faces Legal Action
Posted at 2:30 PM, May 19, 2020
and last updated 2020-05-20 00:07:21-04

TULSA, Okla. — A home warranty company unlicensed to sell in Oklahoma now faces legal action.

This, after the 2 Works for You Problem Solvers spent months investigating the company, getting customers back thousands of dollars.

Many customers describe their experience with Choice Home Warranty as frustrating.

"It actually disgusts me, and it breaks my heart that people are giving their hand-earned money,” said Amy McMillian, a former Choice Home Warranty policy holder.

A Problem Solvers investigation revealed at least 50 area residents had policies with Choice Home Warranty, which is accused of not giving consumers what they paid for.

"I wanted my money back,” said Sheila Smith, a former policy holder.

Our team set out to do just that, putting folks in touch with the Oklahoma Insurance Department, who then sent Choice Home demand letters to refund customers premiums.

"We have on record about 20 total refunds that have been given to consumers, but we now have that many again, 20 or 25 that have requested full refunds,” said Mike Rhodes, deputy commissioner of consumer assistance with the OID.

Some Choice Home consumes were able to get back thousands of dollars in refunds.

"Thankfully it's finally resolved, and thankfully the insurance commission did what they needed to do," said Karen McMillian, a former policy holder.

But others were not so lucky.

"We got word after the first couple of rounds of requested refunds that the company was no longer willing to go down this path, and that was in early April when they stopped cooperating with the department,” Rhodes said.

This left many customers in limbo, like Robert Hendrick.

“Yeah, it was definitely a waste of money,” said Hendrick, a current Choice Home Warranty policy holder.

Hendrick paid the warranty company $45 a month for five years, totaling almost $3,000.

When he learned the company was unlicensed to sell in the state, he called the OID to see if he could get a refund.

Instead, he received a letter that read:

“The Department will be initiating further regulatory and legal action against CHW that will involve fines levied against the company. Your request for assistance will be suspended for a period until these actions are adjudicated by the court.”

So, what does this mean for current policy holders wishing to get refunds? They'll have to wait for the matter to be heard by an administrative law judge.

"Of those consumers that have requested a full refund, pending the determination by the administrative law judge, we will, if there are fines and penalties, we will then contact those individuals and make distributions of those refunds going forward,” Rhodes said.

The hearing is scheduled for June 25.

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