First American Home Buyers Protection Scam Alert.

This complaint has been filed to FTC, CA State Attorney General, BBB, California Department of Insurance and will continue to alert other consumers on Blogs and Websites.

I have a contract #10286496701 with First American Home Buyers Protection (First American HBP), 2250 Apollo way, suite 200, Santa Rosa, CA 95407-9118. Their website: https://homewarranty.firstam.com/Default.aspx

On 4/2/2011 the First American HBP gave us two work orders: One for plumbing (DRAINEX ROOTER) due to ceiling water leaking in my bathroom, and another order (M K CONSTRUCTION) for the electric fan located under the leaking ceiling and damaged by the above water leaking. They said they granted the two work orders if the ceiling leaking is the cause for the fan damaged. If they did not fix the ceiling, then the fan would damage in the future.

On 4/2/2011 an employee from DRAINEX ROOTER & PLUMBING CO.(http://www.drainexplumbing.com/ ) came to my house, promised to fix the ceiling on the next day and gave us another service agreement to sign, then asked for $55. We wrote the check (#1913) and signed the agreement. However, they broke the contract and have never come back. The ceiling still is leaking.

On the next day only M K Construction fixed the fan. We paid another $55 (#1914).

Since the water leaking is not fixed and it will continue damage the fan, we reminded the First American HBP about the leaking. They gave us another work order for plumbing by another company, the HOME WARRANTY PLUMBING AND ROOTER.

Yet, after inspection this company told us it is not covered under the home protection policy. And they sent us another bill service fee $55 for work order #602474707 and use collection agency.

Please notice it is the same ceiling that has two work orders within one week. And according to their policy, consumers have to pay a total three bills of $55 * 3 = $165: One for electric and two for water leaking; even though they denied to fix the ceiling. And the fan would continue to be damaged.

I believe it is a scam. Consumers have to pay annual fee for $432 and extra $55 for any work order. It does not matter if the work order is performed or not, good or bad, complete or incomplete. It is not like insurance company and deductible. However, the First American HBP does not make clear such weird policy to their consumers.

Because the First American Company failed to make a clear statement that consumers have to pay extra fee for any work order whether it is performed or not, good or bad, complete or incomplete, and because the Drainex Company broke their promise, and took $55 for nothing to exchange. I believe they committed a scam. Their policy violates US basic fairness and justice.

I believe that basic fairness and justice for any contract requires both parties have to exchange something. Consumers should pay extra service fee $55 only if the work order is performed. No repair nor service performed, then no an extra fee. It is not fair for a service man come to a house, do nothing, and receive extra $55. It is ok to deny the service, but still taking extra fee for denial is unfair and unethical. Please alert and protect other citizen from this scam practice.

We just receive a letter from First American HBP. They canceled the charge for the second plumbing, but still charge $55 for the unperformed plumbing of DRAINEX ROOTER. That means they still take our $55 for the work order unperformed.


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http://www.tranlich.com/homeprotectionscam/

I could go on for paragraphs but I have a feeling it's all been said at this site before. If you enjoy being totally ignored, lied to about responses and outcomes, and waiting without heat while your home warranty company stalls, ignores, makes up stories about claim status and conspires with their inept contractor to defraud you then this is the company for you... THEIR technician broke a part on my furnace, through WEEKS of time, they refused to acknowledge what happend, then refused to cover it as a covered part, although it is a REQUIRED component for the furnace to ignite. This is the specifics of this one instance. In the past they repeatedly sent technicians who were absolutelty clueless. How about a technician who comes out diagnose an air conditioner that isn't working and doesn't have a freon detector? How about a contractor who installs an a two stage air conditioner compressor, as directed by First American, getting only one stage operational, claims to be done, wants me to pay a portion of his bill and First American neither requires him to get the 2nd stage operational, nor supports me as he the contractor tries to collect from me? Absolutely THE WORST company I have ever dealt with!

First American claims to use only licensed contractors, but only check to see if they have a license with the State of Ohio. They do not check and do not care if the contractors have the necessary local licenses.

FAHBP has been notified of this and continues to use unlicensed contractors. If you have a claim, be sure to ask the contractor if they have any needed local licenses.

Had a plumbing problem. The sump pump in my basement failed. First American declined to repair it. They say I have an extractor pump which is another name for sump pump. Since their contract specifies sump pump they refused to honor the claim. They believe that semantics is fair play. There is little differences between the cost of a sump pump or extractor pump. The claims officer didn't even know the difference. How is a home buyer to know there's a difference. It turns out that they consider a sump pump one that ejects rain water and an extractor one that extracts bathroom water from say a basement sink. In reality they do they same, they move water. The pump costs less than $300 but First American refuses to repair or replace. They believe semantics is good business, we as consumers need to prove them wrong.

Interestingly, their contractor, Just Plumbing, tried saying they'd repair it for $1500. A $1200 mark up with only 1 hour labor required. Now if they billed First American for the same job, it would just be the cost of a pump and 1 hour labor. First American looks out for itself, not you.

It appears the reason these contractors like the First American gig is that they can take advantage of customers on items not covered. In fact, it appears they like it when items are not covered. My understanding is that the contractor gets $110 for the visit and have you as their capture audience. While you may think their prices are under the guidance of First American. Think again. You're nothing more than shark bait. I reported the abuse to First American and they could care less about overcharging by contractors.

I am a RE agent and would never recommend a First American Home Buyer Protection Policy again.

First American is the most dishonest company anyone could ever deal with. After purchasing the protection plan, you later find out that nothing is covered under your plan, the contractors their using are very unprofessional, when trying to contact First American in regards to a complaint... well brace yourself for a lie. In the summer of 2009, my A/C unit went out. I contact FAHBP about the problem, they told me that they would have a contractor to come out(A/C on the Way), and check out the problem. First, they said that they would call me the following day to confirm. Didn't hear anything for two days. So then, I called A/C on the way to find out what was going on. They said they didn't have an order for it. So then, I contacted FAHBP, again. They put me on hold for ever. Finally, they come to the phone and states that it was an error and a contractor will be out that day. Well, about two hours later A/C on the way called me and asked me if I knew that I had to pay a $60 service fee. I replyed that I am aware of the service fee, and he stated that he was on his way. He gets here an hour later, checks the unit and tells me that he is going to have to get the FAHBP. Now, three weeks has gone by my family and I still have no air. To make a long story short, we had no air for a month and a half. If you live in Texas, then you should know the heat here is NO JOKE!Please please please, don't do any business with First American Home Buyers Corp. You will be just like the rest of us UPSET!