WICHITA, Kan. (KSNW) — Following a joint investigation between the Kansas Attorney General’s Office and Sedgwick County District Attorney’s office, a home warranty company has been given an $850,000 consent judgment.
A news release from the AG’s office says HomeServe will pay $500,000 to the state of Kansas and $350,000 for restitution to Kansas consumers in connection with the marketing of home warranty services.
HomeServe USA Corporation and HomeServe USA Repair Management Corporation agreed to the consent judgment, which is related to interior and exterior electrical home repair plans offered through its affiliation with Evergy from September 2014 through December 2019.
The investigation alleges HomeServe offered electrical home repair plans that failed to provide a benefit to consumers. It also alleges HomeServe made material misrepresentations in violation of the Kansas Consumer Protection Act.
The judgment is a court-approved agreement between the parties. HomeServe does not admit to the state’s allegations.
In addition to the $850,000, HomeServe agreed to use clear language in solicitations containing a third-party logo under these circumstances:
- Disclosure that HomeServe is an independent company, separate from the third party;
- Notice that the third party is being compensated for use of its logo; and
- Disclosure the home repair plans are offered by HomeServe.
Moving forward, HomeServe will remove requirements that say a home’s electrical system has to have a certain amperage to receive services. It will also waive amperage requirements in current plans.
Evergy was fined $500,000 in July as a part of the investigation into the utility company and HomeServe.