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Better Business Bureau (BBB) advises consumers to use caution when doing business with Like New Home Warranty, a St. Peters, Missouri-based company which markets home warranty plans. Consumers reported to BBB that the company used misleading sales tactics, provided poor customer service, and failed to cancel contracts and issue requested refunds.
Like New Home Warranty has an “F” rating, the lowest on BBB’s scale, due to unanswered and unresolved complaints. Since August 2020, the company has received more than three dozen customer reviews, most of which are negative.
The business markets home warranty plans primarily through the use of mailers. The mailers promote a sense of urgency for the recipient.
“Our records indicate that you HAVE NOT CONTACTED us yet to get your Home Warranty up to date,” a mailer sent to a California resident read. “Please call IMMEDIATELY as this will be our FINAL ATTEMPT TO NOTIFY YOU.”
Complaints about Like New Home Warranty
A Troy, Missouri, man said he contacted Like New Home Warranty in February 2021 after receiving one of its mail solicitation letters. He said he paid the company nearly $4,000 for a four-year policy. The man said he received a follow up email from the company which let him know that his policy was active. He said he became concerned when he never received a contract or information about what was covered by the plan.
After researching the company, he requested that his policy be cancelled and his money refunded. He said Like New Home Warranty requested that he submit the cancellation request in writing. He said he sent a request in March 2021, but the company said it never received it.
“I said I’d drive the letter to them, but they wouldn’t tell me where their office was located,” the man told BBB. He is still waiting for his money to be refunded.
A woman from Stockton, California, told BBB that her dealings with Like New Home Warranty were “the worst experience of my life.” She said she purchased a policy from the business in May 2020, paying $2,700. She said she tried to make three claims with the company, but only received one $325 check. She said that check only partially covered the repairs she needed to have done and that she had to pay for the rest of the repairs.
She said the company requested her policy cancellation in writing, which she said she did in October 2020. In response to the woman’s BBB complaint in January 2021, the company said it would send her a refund check within seven to 10 days. The woman said in April 2021 that she had not received any money from Like New Home Warranty.
“You should never agree to a contract before reading it thoroughly,” said Michelle L. Corey, BBB St. Louis president and CEO. “When you receive correspondence that appears to be time-sensitive, investigate before you act on it.”
According to information provided by the company to BBB, Joseph Walski is president of Like New Home Warranty. The business is located at 1035 St. Peters Howell Road. It shares office space with Auto Protection Club, a vehicle service contract company. According to Missouri secretary of state documents, Walski is a member of the ownership group for Auto Protection Club, which has an “F” rating on BBB’s scale.
The Missouri Division of Employment Security in January 2021 filed a certificate of assessment against Walski stating that he owed the state nearly $107,000 from the period of October 2018 through June 2020.
Auto Protection Club and Walski were listed as defendants in a 2020 federal class action lawsuit filed in the Eastern District of Missouri. The lawsuit centered around the business’ use of robocalls. The lawsuit was dismissed with prejudice in February 2021.
BBB attempts to speak with Walski failed. The company did not respond to a BBB letter asking what it is doing to address its ongoing pattern of complaints.
Tips for Home Warranties
BBB offers these tips on purchasing a home warranty:
- Research any business and its owners carefully before paying any money. Check the company’s BBB Business Profile at BBB.org or by calling 888-996-3887.
- Do not be pressured into making an immediate decision. Beware of any sales offer that requires you to buy now in order to qualify for the best rate.
- Never give any personal or credit card information over the phone or via email until you have read and agree to the terms and conditions of a contract.
- Beware of claims that you will receive “complete” coverage. That doesn’t necessarily mean that every problem will be covered. Look for conditions and disclaimers.
- Pay by credit card whenever possible in case you need to challenge the payment.