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EDISON A township-based company may have to pay back consumers it allegedly duped through its home-warranty program.
The state Division of Consumer Affairs (DCA) filed suit July 28 against CHW Group Inc., or Choice Home Warranty, alleging that it sold coverage for home appliances and systems but then left customers in the lurch when they submitted claims, according to state Attorney General John J. Hoffman.
The complaint quotes from CHW advertisements stating that its home warranties protect customers against the high costs of unexpected repairs or replacements of home systems and appliances. The ads also state that, should consumers need service, CHW will quickly respond by dispatching a licensed, insured technician.
According to Hoffmans office, CHW and its current and former principals, Victor Mandalawi, Victor Hakim and David Seruya, all believed to be of Brooklyn, N.Y., made it difficult or impossible for consumers to realize the benefits of their warranties.
Authorities said the company often denied claims based on consumers supposed failure to properly maintain covered home systems or appliances, or based on purported pre-existing defects. The company also denied claims even when technicians declared that covered items had been properly maintained, or had failed for reasons not related to poor maintenance or pre-existing problems, according to Hoffmans office.
Authorities allege that the defendants often demanded that customers provide years of records to prove that they performed regular maintenance on the covered items or be denied.
Home warranties from CHW also claimed that the company would replace items that could not be repaired, but it often offered cash buyouts for hundreds of dollars less than the consumers cost to replace the item, the lawsuit states.
Promises for prompt service also went unfulfilled due to cases of technicians going unpaid, authorities said. The DCA has received 16 complaints from technicians alleging nonpayment by CHW of outstanding invoices totaling at least $21,690.
Despite alleged failures to honor contract terms, CHW paid millions of dollars to each of its principals between 2010 and 2013, authorities said.
The DCA received complaints about CHW from 116 consumers, including 18 from New Jersey, seven from New York, and five from Pennsylvania. The state also has been provided with 902 complaints that were filed with the Better Business Bureau by individuals from various states.
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State accuses home-warranty firm of defrauding consumers
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Home security system foils robbery
By Brianna Bodily
August 7th, 2014 @ 7:55pm
MURRAY Murray police say a robbery was foiled when a Utah womans surveillance camera caught two people stealing UPS packages off her porch.
Laura, who prefers we do not use her last name, said she first noticed the missing packages when she found an empty porch after work.
I get a lot of shipments from Amazon, over the Internet, and I was expected some packages when I got home from work and they were not there, she said. I went on my Amazon account and it said that all three packages had been delivered.
She said she checked her porch again, then her yard, looking anywhere the packages may have rolled or been hidden. When nothing turned up, Laura said she turned to the security cameras her husband insisted on buying.
My husband always wanted to have those cameras installed and I thought it was a waste of money, Laura said. I just didnt think anything like that would ever happen to us. We just live on a quiet street, quiet neighborhood. Ive ordered stuff from Amazon for years and Ive never had anything like this happen.
She said the video showed one package arrive around 11 a.m., followed by another two around 3 p.m. Laura said after the second delivery it wasnt long before she had her suspects on camera: Within two minutes we see the red car, or the red truck, come and we had footage of (a woman) taking the three packages, Laura said.
Murray police detective Kenny Bass
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Home security system foils robbery
