Department issues Cease and Desist Order to protect California consumers from unlicensed home warranty company
News: 2021 Press Release
LOS ANGELES, Calif. — The California Department of Insurance issued a Cease and Desist Order effective immediately for New Jersey-based company, Forever Home Service LLC, doing business as Harmony Home Warranty (Harmony). The Department’s Order alleges Harmony sold home warranty contracts in California without proper authorization from the Department or Insurance Commissioner Ricardo Lara.
The Department launched an investigation after receiving multiple complaints from consumers who purchased home warranty contracts from Harmony, a limited liability company organized in the state of New Jersey. Consumers reported that Harmony declined to pay claims and were unresponsive to phone calls and emails.
The investigation revealed that Harmony solicited business through the website www.harmonyhomewarranty.com, where consumers could provide general information online. Harmony then contacted consumers to provide a quote and collected credit card payments for home warranty contracts. Multiple consumers filed claims that were either declined or ignored. Consumers were also locked out of their online account on Harmony’s website when they tried to submit claims. As a result, consumers had to pay for the repairs or replacements out of pocket.
Consumers are advised to check the license status of any of the Department’s licensees and contact the Department at 800-927-4357 if they suspect they may be victims of fraud.
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The California Department of Insurance, established in 1868, is the largest consumer protection agency in California. Insurers collect $371 billion in premiums annually in California. Since 2011 the California Department of Insurance received more than 1,000,000 calls from consumers and helped recover over $469 million in claims and premiums. Please visit the Department of Insurance website at www.insurance.ca.gov. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.