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Topeka, Kansas (WIBW) – A company selling home repair plans will pay $850,000 after it was accused of fraudulently selling services in Kansas using the Evergy name.
Kansas Attorney General Derek Schmidt said on Friday, Jan. 6, that HomeServe will pay the state $500,000 for alleged violations of the Kansas Consumer Protection Act, working with Sedgwick District Attorney Mark Bennett. He also said the company will pay $350,000 in damages to Kansas consumers related to the marketing of home warranty services.
AG Schmidt acknowledges that HomeServe USA Corp. and HomeServe USA Repair Management Corp. agreed between September 2014 and December 2019 relating to interior and exterior electrical home repair plans offered through their partnership with Evergy. indicated that he agreed with the judgment.
Schmidt and Bennett said they jointly investigated partnerships between companies that offered electric home repair plans that did not benefit consumers and misrepresented them in violation of consumer protection laws. He also said the ruling was a court-approved agreement and that HomeServe still does not recognize the state’s claims.
Under the ruling, AG said HomeServe paid the state $500,000 and agreed to $350,000 in damages to customers managed by AG’s offices.
Further, Mr. Schmidt noted that HomeServe has agreed to use clear and prominent language in advertisements containing third-party logos under the following circumstances:
- Disclosure that HomeServe is an independent company separate from third parties.
- Please note that third parties are compensated for the use of their logos.
- Disclosure that the Home Repair Plan is provided by HomeServe.
The AG said HomeServe is prohibited from sending solicitations that look like bills, invoices, or financial statements. Going forward, he said, it will remove the requirement that a home’s electrical system must have a certain amperage in order to receive service or purchase a repair plan. It also waives the amperage requirements of current repair plans.
In the future, Schmidt indicated that the company will use reasonable efforts to solicit targeted customers for its products or services.
In July, Schmidt said Evergy paid the state of Kansas $500,000 as part of a consent decree related to the investigation. also said to have paid
To read the full text of the consent decree, click here.
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