Consumers who were illegally denied a claim may file with the Pennsylvania Office of Attorney General to get restitution
HARRISBURG — Attorney General Josh Shapiro announced today that Pennsylvania based THS Group, LLC — more commonly known as Total Home Protection — and its owner, David Seruya, have agreed to pay $400,000 in restitution as part of a settlement of the lawsuit filed by the Office of Attorney General against the home security company for deceptive marketing practices. With today’s settlement, THS and Seruya have agreed to revise their business practices.
“Customers were falsely led to believe that, in signing a contract with THS, they would be protected,” said AG Shapiro. “Instead, THS engaged in alarming behavior: denying claims, failing to provide services, and doing everything it could to avoid refunding consumers. What THS did is illegal and today we got Pennsylvanians their money back. Anyone who was denied a claim or refund by THS should contact my office.”
THS advertised and sold home warranty “service contracts” to consumers, many of whom were elderly or otherwise vulnerable, in Pennsylvania and dozens of other states. The lawsuit filed by Attorney General Shapiro’s office stated that THS and Seruya falsely advertised the coverage and services available under these contracts — and once consumers were locked into a contract, THS and Seruya used creative and deceptive means to wrongfully deny covered claims, failed to respond to consumer claims and inquiries, and refused to reimburse or refund consumers in accordance with the terms of their written guarantees.
Today’s settlement agreement prohibits THS from, among other things, using advertisements for service contracts that contradict the terms of the service contracts themselves and engaging in unfair and deceptive conduct to deny coverage.
THS is required to make meaningful, substantial and specific changes to its business practices, including but not limited to sales policies, claims evaluation processes, the cancellation process, and customer service policies.
THS is to pay a total of $750,000, which is broken down as follows:
- $400,000 in consumer restitution
- $200,000 in costs
- $150,000 in civil penalties, with an additional $150,000 of civil penalties suspended.
The Consent Petition allows for restitution to be paid to eligible consumers including any additional consumers who file complaints with the Office of Attorney General’s Bureau of Consumer Protection by Sunday, February 6, 2022. To be considered for restitution, any consumers who believe they may have been harmed by THS should submit a complaint online at www.attorneygeneral.gov/submit-a-complaint.
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