PHOENIX – Arizona Attorney General Kris Mayes announced a $11.8 million settlement with Choice Home Warranty on Tuesday, February 10, 2026, resolving a consumer fraud lawsuit that began in 2019. The agreement requires the New Jersey-based company to overhaul its sales practices and provide clearer disclosures to consumers before selling home warranty contracts.
The lawsuit, initially filed by former Attorney General Mark Brnovich, alleged that Choice Home Warranty failed to fulfill its obligations to repair or replace covered appliances and air conditioning units, despite collecting premiums from Arizona homeowners. More than 1,500 complaints had been filed against the company with the Arizona Attorney General’s Office, the Arizona Department of Insurance and Financial Institutions, and the Better Business Bureau since 2013, according to Mayes’ office.
“Choice Home Warranty allegedly misrepresented the coverage provided by their warranties and pocketed millions of dollars from Arizonans, particularly veterans, senior citizens, and others living on fixed incomes,” Mayes stated. “Businesses cannot hide behind fine print and hidden disclosures to exploit our most vulnerable consumers. This conduct is unacceptable and will not be tolerated by my office, even if it means fighting scammers and fraudsters for years on end. We don’t quit.”
Customers frequently reported deceptive sales tactics, including failures to disclose exclusions and limitations on coverage, and outright misrepresentations about what repairs or replacements would be covered. The Attorney General’s Office noted that Choice Home Warranty had previously been investigated by the New Jersey Attorney General in 2015, resulting in a $780,000 settlement, but the company’s practices continued.
Choice Home Warranty, once prominently advertised with boxing legend George Foreman, sold service contracts ranging from $420 to $750, according to court documents. Complaints detailed instances where the company imposed payment caps – $1,500 overall and $500 specifically for plumbing issues – and delayed repairs, such as forcing customers to wait days for air conditioning repairs during extreme heat.
The judgment, entered on January 23, 2026, mandates that Choice Home Warranty reform its sales practices and provide meaningful disclosures to consumers. The company denies the allegations and has not admitted any wrongdoing as part of the settlement.
Arizonans who purchased a Choice Home Warranty over the phone between January 1, 2013, and January 1, 2023, for a home in Arizona may be eligible for restitution. Consumers do not require to file a complaint to qualify. The Arizona Attorney General’s Office has indicated that further details regarding eligibility and the application process will be released at a later date, with restitution distributed once settlement funds are received.
Assistant Attorneys General Mitchell Allee, Stephen Silverman, Dylan Jones, Suzanne Pendergast, John Dillon, and the Consumer Protection and Advocacy Section handled the case. The Arizona Attorney General’s Office acknowledged the assistance of the Better Business Bureau of Arizona, the law firm of Gallagher & Kennedy, and Choice Home Warranty customers and Arizona contractors who contributed to the litigation.
