I paid Mutual Warranty $754 to provide coverage on a home that we purchased on 6/28/06. We chose MW because our experience with American Home Shield had been less than satisfactory.
I was informed by the agent, Mike, that I had to pay for the warranty about 2 weeks prior to taking possesion of the house to allow for processing of paperwork. I paid for the warranty on June 19, with coverage to begin on June 28.
I received the warranty on/about June 22, with confirmation of coverage.
On August 10, we discovered that the valves underneath the kitchen sink were leaking. I called the 866-968-8825 customer service number and was on hold for more than 20 minutes. When my call was finally answered, it was obvious that I was not speaking with someone whose primary language was English—in fact, I was calling Panama! The agent put me on hold, and then someone answered "billing". I explained to "Gino" that I needed a plumber, not billing. Gino informed me that my contract had been cancelled!
I was taken aback—I had paid for this contract via American express, so billing could not be the problem. When pressed as to the how/when/why of the contract cancellation, Gino informed me that "the president of the company has decided not to do business in Florida" and that "all Flodia contracts have been cancelled"!
It really sounded fishy, so I pressed further, and only then did Gino finally admit that the state of Florida had issued a cease/desist order that prohibited them from doing business in Florida. When I asked when and how I was notified of the cancellation, Gino told me that I was telephoned in late June. I have NEVER receievd a phone call (verified by my caller ID logs), and e-mail, or a certified letter informing me of their actions. Further, they wrote a policy on a property when they knew they could not and took my money.
Had I not needed a plumber, I never would have known that my contract had been cancelled. Luckily, this time it was only a $175 bill. I hate to think what it could have been. And, this company has mad no effort to refund the $574.
The name of the principal owner is: Devon Johnston.
I have contacted the Colorado Attorney General (303-866-3611), the Florida Attorney General (850-414-3300) and the Denver BBB.
I would be most interested in prosecuting this company for brach of contract and would join a class action suit.
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