Hoffman Advances Consumer Protection Measure, Targets Deceptive Home Warranty Schemes

SPRINGFIELD, Ill. – A proposal recently advanced by state Rep. Jay Hoffman, D-Swansea, would stop companies from sending misleading mail encouraging homeowners to extend an “expiring” home warranty when the homeowner actually has no warranty or business relationship with the company.

“These companies are trying to convince homeowners that they need to take action to preserve a warranty that doesn’t exist,” Hoffman said. “It’s easy for people, particularly older adults, to get confused and be defrauded. This is a dishonest scheme that’s hurting people, and we’re going to put an end to it.”

Hoffman’s House Bill 226 would prohibit a company from sending any mail that claims the recipient’s home warranty is expiring and requesting payment if the resident does not currently have a home warranty with that company. If implemented, companies that continue to mislead homeowners with this scheme would be subject to penalties under the state’s Consumer Fraud and Deceptive Business Practices Act – including license suspension, restitution and civil penalties. House Bill 226 passed the House Consumer Protection Committee with bipartisan support and now heads to the full House chamber for consideration.

“This idea was brought to me by a local resident who has been inundated by these misleading letters,” Hoffman. “When homeowners consider home warranties, they deserve to deal with companies that engage in responsible business practices. I look forward to bringing this legislation to the full House floor.”

For more information, please contact RepJayHoffman@gmail.com.