Attorney General Kris Mayes has announced an $11.8 million settlement with Choice Home Warranty, marking the largest resolution with a home warranty company in Arizona’s history. The agreement follows years of investigation and legal action by the Arizona Attorney General’s Office regarding alleged consumer fraud.
The judgment, entered on January 23, 2026, requires Choice Home Warranty to change its sales practices and provide clear disclosures to consumers before selling warranties. As part of the settlement, Choice Home Warranty will pay $11.8 million but does not admit any wrongdoing and denies the state’s allegations.
Arizona’s lawsuit against Choice Home Warranty began in 2019 after the office received numerous complaints from consumers who said their air conditioning units and other appliances were not replaced as promised under advertised coverage. According to Attorney General Mayes, “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,” said Attorney General Kris Mayes. “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.”
Over 1,500 Arizona customers have filed complaints about Choice Home Warranty since 2013 with agencies including the Arizona Attorney General’s Office, the Arizona Department of Insurance and Financial Institutions, and the Better Business Bureau. Customers frequently reported that telephone sales representatives did not disclose key exclusions or limitations that affected warranty value or made false claims about what would be covered.
The company was previously investigated by New Jersey authorities for similar business practices, leading to a $780,000 settlement in 2015; however, concerns continued afterward.
Choice Home Warranty customers who purchased warranties over the phone between January 1, 2013 and January 1, 2023 for homes in Arizona may qualify for restitution under this settlement. No complaint filing is necessary at this time; further details about eligibility and application procedures will be released later by the Arizona Attorney General’s Office once funds are available.
Assistant Attorneys General Mitchell Allee, Stephen Silverman, Dylan Jones, Suzanne Pendergast, John Dillon and members of the Consumer Protection and Advocacy Section worked on this case. The office acknowledged support from the Better Business Bureau of Arizona, attorneys at Gallagher & Kennedy law firm, as well as affected customers and contractors.
The Arizona Attorney General’s Office serves as the state’s primary legal authority offering advocacy and protection for residents through services like consumer complaint handling and civil rights support. It addresses elder abuse cases as well as unsolved crimes through its cold case unit while participating in federal lawsuits promoting fair housing initiatives.
Kris Mayes currently holds office as Arizona’s attorney general—the first mother to serve in this role—and oversees comprehensive legal services across Arizona.
Individuals who believe they have been victims of consumer fraud can contact the Attorney General’s Office by phone or access resources online via their official website.
A copy of the consent judgment is available here.
