Home warranty company to pay $900K for deception

AP News
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Posted: Dec 15, 2009 4:59 PM

New York's attorney general says a now defunct New York City-based home warranty company will pay $900,000 for a deceptive scheme that defrauded consumers in New York and across the country.

The state Supreme Court found that National Home Protection Inc. engaged in false and misleading advertising, made multiple misrepresentations and violated New York consumer protection and insurance laws.

Attorney General Andrew Cuomo says the company and its principals have since agreed to pay the restitution, penalties and costs associated with the case.

The home warranty plans promised to repair or replace household appliances and systems if they break.

Cuomo says Tuesday it isn't clear how many people were affected.