Home Warranty Direct: A Scam or a Service?

Home Warranty Direct (HWD) is a company that claims to offer home warranty plans for homeowners who want to protect their home systems and appliances from breakdowns. However, many customers and experts have warned that HWD is a scam that uses deceptive and fraudulent tactics to lure unsuspecting consumers into paying for worthless coverage. In this article, we will examine the evidence and allegations against HWD and provide some tips on how to avoid falling victim to such schemes.

What is HWD and what does it offer?

HWD is a company that sends letters to homeowners, urging them to call a number about a time-sensitive matter about their mortgage, in many cases citing a home warranty coverage about to expire. The letters may look official and reference the name of a mortgage lender, but they are not affiliated with any legitimate financial institution or home warranty provider.

When homeowners call the number, they are connected with a sales representative who tries to sell them a home warranty plan that supposedly covers the repair or replacement of major systems and appliances in their home. The sales representative may use high-pressure tactics, such as creating a sense of urgency, offering discounts, or claiming that the offer is only valid for a limited time.

However, the home warranty plans offered by HWD are not worth the money. According to the Better Business Bureau (BBB), HWD has received hundreds of complaints from customers who reported that the company denied their claims, failed to provide service, or refused to honor their cancellation requests. HWD has also been sued by the Ohio Attorney General for allegedly engaging in deceptive and unfair business practices.

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How can you tell if HWD is a scam?

There are several red flags that indicate that HWD is a scam, such as:

• The letters from HWD do not match your loan account number or mortgage lender.
• The letters from HWD use threatening language or undue urgency, such as warning that you could lose your coverage or face legal action if you do not respond by a certain date.
• The sales representatives from HWD do not provide clear and accurate information about the terms and conditions of the home warranty plans, such as the coverage limits, exclusions, deductibles, fees, or cancellation policy.
• The sales representatives from HWD ask for your personal or financial information, such as your credit card number, bank account number, or social security number.

How can you protect yourself from HWD and similar scams?

To protect yourself from HWD and similar scams, you should:

• Ignore and discard any letters from HWD or other companies that claim to offer home warranty plans without your prior consent or request.
• Do not call the number on the letters or provide any personal or financial information to anyone who contacts you unsolicited.
• Research any company that offers you a home warranty plan before you sign up. Check their BBB rating, customer reviews, and legal status.
• Compare different home warranty plans and costs from reputable providers. You can use online tools such as Progressive or U.S. News to find the best home warranty companies of 2023.
• Read the fine print carefully and understand what is covered and what is not covered by your home warranty plan. Ask questions and get everything in writing before you agree to anything.

Conclusion

HWD is a company that claims to offer home warranty plans for homeowners who want to protect their home systems and appliances from breakdowns. However, HWD is a scam that uses deceptive and fraudulent tactics to lure unsuspecting consumers into paying for worthless coverage. To avoid falling victim to such schemes, you should ignore and discard any letters from HWD or other companies that claim to offer home warranty plans without your prior consent or request. You should also research any company that offers you a home warranty plan before you sign up and compare different plans and costs from reputable providers. You should also read the fine print carefully and understand what is covered and what is not covered by your home warranty plan.