BBB: Business Impersonating Utility Company Deceives East Texans

TYLER — A company with government action against it has hit the East Texas area, according to the Better Business Bureau Serving Central East Texas. HomeServe USA, Corp and HomeServe USA Repair Management Corp. is sending East Texas residents a letter which appears to be from the local water/utility company. BBB has received numerous complaints, from consumers across the country, concerning this business’s direct mail solicitations, specifically that the solicitations’ layout may cause consumers to perceive the letters as coming from the consumers’ utility companies and not an independent business selling home warranty or insurance coverage.

On February 26, 2010, the company entered into an Assurance of Voluntary Compliance with Jack Conway, Attorney General of the State of Kentucky. The Assurance states that the company violated consumer protection laws by designing and mailing or directing the design and mailing of direct marketing materials containing false, misleading and deceptive representations to approximately 230,000 Kentucky consumers in January of 2011. They have since entered into a state of Assurance of Voluntary Compliance with the state of Kentucky. On April 15, 2010, the company also entered into an Assurance of Voluntary Compliance with State of Ohio Attorney General.

“Unfortunately, impostor scams are very common, with scammers impersonating officials from the IRS to trusted charitable organizations,” said Mechele Agbayani Mills, president and CEO of the BBB Serving Central East Texas. “They make a living by claiming to be affiliated with organizations people know and trust.” HomeServe USA, Corp and HomeServe USA Repair Management Corp offers homeowner warranty coverage and coordinates repair services associated with the warranty coverage. However, BBB has also received customer complaints concerning coverage issues, specifically that when a problem occurred, it was not covered by the policy.

BBB encourages consumers to read any warranty or insurance policy prior to purchase and understand what is covered and any limitations of the policy as well as if your current homeowners policy already covers those items. Also check the licensing or registration status for any service work being performed. If you are a victim of an impostor scam or to report fraud, please call the BBB Hotline: (903) 581-8373. Go to http://www.bbb.org for more tips on how to be a savvy consumer.