Choice Home Warranty
Choice Home Warranty is a New Jersey-based home warranty provider offering service contracts that cover repair and replacement of major home systems and appliances. The company operates nationwide with a network of over 25,000 contractors and uses celebrity endorsements from George Foreman in its marketing.
Score generated by AI agents based on publicly cited evidence and reviewed by the project maintainer. Not independently validated. Last assessed 2026-09-27. Score revised 2026-09-27: 57 → 52.
Score History
Timeline events are AI-curated from public reporting. Score trajectory is derived from documented events.
Victor Hakim and Victor Mandalawi founded CHW Group in Edison, New Jersey, selling home warranty service contracts against incumbents like American Home Shield. The record for these years is thin: by 2010 a contractor was publicly complaining that the company would not pay for authorized service calls. Consumer complaints had not yet drawn regulators.
As the company grew onto the Inc. 5000 list, complaints about denied claims mounted: Arizona consumers began filing the complaints that would total more than 1,500 by 2023. In July 2014 New Jersey sued, alleging Choice sold 'comprehensive' coverage and then denied claims by demanding years of maintenance records, refusing written explanations and offering low buy-outs, and that unpaid technicians were refusing dispatches. Consumer Reports cited its BBB F rating in September 2014.
The $779,913 New Jersey settlement, with personal confessions of judgment from the principals and a compliance monitor, did not change the pattern. The company kept growing (433% three-year growth in 2016) while Houston and Kansas City stations documented claim denials and 1,800 and then 3,000+ BBB complaints. Oklahoma ordered it to stop unlicensed sales in 2017, and the BBB caught it offering undisclosed incentives for positive reviews. The George Foreman ad campaign launched in November 2018.
Arizona's consumer fraud suit in October 2019 opened a period of sustained legal pressure. BBB complaints passed 5,000 and then 11,000 in three years. Oklahoma found the company violating its cease-and-desist order, contractors reported payment holds, and from January 2021 TCPA class actions over robocalls and texts piled up, with nearly 40 suits cited by 2022 and repeated losses on motions to dismiss in 2025. New CEO James Mostofi (2021) and the 2022 Home Warranty of America purchase made Choice the third-largest provider without changing its sales or claims practices.
H.I.G. Capital's investment in parent Rely Home in November 2025 brought private-equity ownership and refinanced debt. Within three months Arizona entered an $11.8 million consent judgment requiring upfront disclosures, and New York fined the company for Do Not Call violations. Restitution claims opened in 2026, but TCPA suits, denial complaints and a law-firm investigation continued, and there is no evidence yet that claims practices have changed.
Alternatives
The largest home warranty provider in the US — more established, with a larger contractor network and a longer track record than Choice. Claim denial issues are common across the home warranty industry, so AHS is not a perfect alternative, but it has fewer documented state AG enforcement actions than Choice and a better-funded operation. Moderate switch — wait until your Choice contract expires, then compare coverage at ahs.com.
Consumer Reports recommends skipping service contracts and putting the money into a savings account or repair-and-replacement fund instead of paying roughly $590-690 a year (2026 quotes) to a warranty company whose claims decisions rest on exclusions and caps. The math often favors self-insurance for newer homes and owners with some ability to save. No cancellation fees, no service fees, no denied claims.
Dimensional Breakdown
Summaries below were written by AI agents based on the cited evidence. They are editorial interpretations, not independent research findings.
Dimension History
Timeline (43 events)
CHW Group Founded in Edison, New Jersey
Victor Hakim and Victor Mandalawi founded CHW Group Inc., doing business as Choice Home Warranty, in Edison, New Jersey; David Seruya was also among the company's principals named by New Jersey regulators in 2015. The company offered home warranty service contracts covering repair and replacement of major home systems and appliances, entering a market dominated by American Home Shield.
Contractor Non-Payment Complaints Surface on ComplaintsBoard
A contractor posted on ComplaintsBoard in May 2010 that Choice Home Warranty had not paid for authorized, documented service calls at two locations, cycling through excuses from 'the check is in the mail' to 'we do not have record of this claim', and was asking contractors to sign a release before payment. Other contractors added similar reports of unpaid invoices in the comments.
Arizona Consumer Complaints Begin Accumulating Against CHW
Consumer complaints against Choice Home Warranty began accumulating with the Arizona Attorney General, Arizona Department of Insurance, and Better Business Bureau. Over the following decade, more than 1,500 Arizona consumers would submit complaints alleging misrepresented coverage and denied claims.
New Jersey Sues CHW Over Deceptive Claim Denials
The New Jersey Division of Consumer Affairs sued CHW Group and principals Victor Mandalawi, Victor Hakim and David Seruya, alleging the company promised 'comprehensive' coverage and 'peace of mind' but denied claims by demanding years of maintenance records it had no contractual right to, refused written explanations for denials, and offered buy-outs hundreds of dollars below replacement cost. The Division cited 116 consumer complaints plus 902 BBB complaints, and 16 technician complaints over at least $21,690.92 in unpaid invoices; in one case three technicians refused a job because they had not been paid for earlier work.
Consumer Reports Warns Against CHW, BBB Issues F Rating
Consumer Reports published an article warning consumers to avoid home warranties, specifically citing Choice Home Warranty's F rating from the Better Business Bureau based on 957 complaints, the company's resolution timelines, and a pending New Jersey state complaint. The report recommended self-insuring with dedicated savings accounts rather than paying annual premiums to warranty companies that routinely denied claims.
New Jersey AG Extracts $780K Settlement for Deceptive Practices
New Jersey Acting Attorney General John Hoffman announced that Choice Home Warranty would pay $779,913 in penalties, fees, and restitution for inducing consumers to buy warranties by claiming they offered 'comprehensive' coverage, then using deceptive tactics to deny claims. The Division of Consumer Affairs had received 1,085 complaints. Principals Mandalawi, Hakim, and Seruya were required to execute personal confessions of judgment, and the company was ordered to retain a state-approved compliance monitor.
Houston BBB: CHW Tops Local Warranty Complaints
KPRC 2 Houston reported that the Better Business Bureau had collected more than 1,800 complaints about Choice Home Warranty over three years, more than any other warranty company from the Greater Houston area. A Meadows Place homeowner's roughly $5,000 AC claim was denied for 'lack of maintenance', the same rationale New Jersey had cited, and the company stopped responding after promising to revisit it.
CHW Named to Inc. 5000 for Fifth Consecutive Year
Choice Home Warranty was ranked #922 on the 2016 Inc. 5000 list of fastest-growing private companies, with 433% three-year revenue growth. This marked the company's fifth consecutive year on the list, reflecting rapid customer acquisition driven by aggressive telemarketing and pricing strategies even as consumer complaints mounted.
Oklahoma Issues Cease-and-Desist for Unlicensed Sales
The Oklahoma Insurance Department issued a cease-and-desist order against Choice Home Warranty in 2017 for selling home warranty contracts in Oklahoma without the required license. In March 2020 the department announced an active investigation after finding the company had continued issuing policies without a license in violation of that order, and said it was demanding refunds for contract holders.
BBB Accuses CHW of Incentivizing Positive Reviews
The Better Business Bureau accused Choice Home Warranty in 2017 of offering incentives to customers who submitted positive reviews without disclosing the incentive; a few months later the company added the disclosure, CBS 2 Chicago reported.
CHW Reaches Inc. 5000 Sixth Time, Market Share Grows Aggressively
Choice Home Warranty appeared on the Inc. 5000 list for the sixth time in 2017, ranked #1,300 with continued strong growth. The company's aggressive telemarketing and below-market pricing allowed it to capture market share from incumbents, but its competitive tactics relied on practices that harmed consumers rather than genuine service improvements. The growth trajectory positioned CHW to eventually acquire Home Warranty of America and become the nation's third-largest provider.
HVAC Contractors Report Unpaid CHW Invoices on Industry Forum
HVAC contractors on the HVAC-Talk forum reported that Choice Home Warranty owed companies thousands of dollars for completed work, that it dispatched jobs to technicians not on its contractor list and then required a lawsuit waiver before payment, and that its low payouts left repairs to untrained companies. Qualified contractors increasingly refused CHW assignments.
KSHB Investigation Reveals 3,000+ BBB Complaints
KSHB (41 Action News) in Kansas City reported on a family whose air conditioner, furnace, drainage and water heater claims Choice Home Warranty would not fix. The station found the company had more than 3,000 BBB complaints and a B- rating, and a Better Business Bureau spokesperson said the bureau had gone after the company for bribing people to post positive reviews. Choice Home Warranty did not return the investigators' calls and emails.
George Foreman Celebrity Endorsement Campaign Launches
Choice Home Warranty signed boxing legend George Foreman as a brand ambassador through InterMedia Advertising and InterMedia Entertainment. Foreman and family members including his wife Mary Joan, son George 'Red' Foreman V and daughter Natalie were to appear in television, radio, online and print advertisements. The campaign lent a respected public figure's trust to customer acquisition while BBB complaints mounted.
Auto-Renewal Traps and Cancellation Friction Documented
Consumer complaints to the Better Business Bureau documented Choice Home Warranty's retention practices, including automatic renewal and difficulty cancelling. The company's contract auto-renews unless the customer cancels, charges an administrative fee of up to $50 on cancellation, and requires written notice 30 days before a monthly term ends.
CBS 2 Investigation: CHW Refuses Furnace Repair Payment
CBS 2 Investigators in Chicago reported on Tom Delillo, who bought a $350 Choice Home Warranty policy and was denied reimbursement for a roughly $1,300 furnace repair after a company representative blamed 'rust and corrosion'. After months of emails and calls Choice offered $600; after CBS 2 contacted the company, it said it had made an error and offered full reimbursement. The report also noted the 2015 New Jersey settlement and the BBB's 2017 review-incentive accusation.
Employees Report Tactics to Deflate Customers and Vendors
Employee reviews on Comparably said staff were 'given tactics to deflate customers and venders' and that 'our hands are tied by upper management'. Only 9% of Choice Home Warranty's 328 Comparably employee reviews were positive.
Arizona AG Files Consumer Fraud Lawsuit Against CHW
Arizona Attorney General Mark Brnovich filed a consumer fraud lawsuit against Choice Home Warranty in Maricopa County Superior Court, alleging the company collected millions from Arizona consumers but used contract exclusions, payment caps and bad-faith refusals to avoid paying for repairs. The complaint said CHW promised to cover appliances like air conditioners and refrigerators that its contracts excluded, imposed a $1,500 payment cap and a $500 plumbing cap, and advertised '24/7 customer service' that was 'swift and timely' while one consumer waited four days in the summer heat for an inspection and was then refused payment.
Oklahoma Reports Three Cease-and-Desist Orders and Fines
KJRH in Tulsa reported that the Oklahoma Insurance Department had issued three cease-and-desist orders against Choice Home Warranty over the past decade for selling warranties without a license and fined it nearly $40,000, and was requiring it to pay claims and refund policies. The BBB said the company had 5,280 complaints in the previous three years.
BBB Complaints Surpass 5,000 with Bureau Alert Issued
Multiple news outlets reported that Choice Home Warranty had accumulated more than 5,000 BBB complaints in three years, prompting the BBB to issue an alert on the company's profile. Consumer Callie Grant reported paying $500 annually but being denied coverage for a leaking water heater listed as covered in her handbook, while still being charged a $60 service call fee for the denied claim.
Contractors Report Payment Holds and Unpaid Invoices
Contractors on a long-running ComplaintsBoard thread reported that Choice Home Warranty owed them large sums, with one writing in December 2020 that it owed them 'over $20000 since the start of covid' and another reporting $12,200 in arrears on authorized invoices. Others said their accounts were frozen with 180- to 365-day payment holds, and a customer described technicians being dropped after going unpaid while a repair waited.
TCPA Class Action Alleges Prerecorded Robocalls to 10,000+ Phones
A proposed class action filed January 28, 2021 alleged that CHW Group placed prerecorded robocalls to at least 10,000 landline and cell phones without prior express consent, including numbers on the National Do Not Call Registry. A Vermont plaintiff reported a December 2020 voicemail: 'Hi this is Erica calling from Choice Home Warranty and we're running our special Cyber Monday sale.' The suit alleged the company kept no internal do-not-call list and never trained employees on it.
Multi-Year Prepayment Contracts Lock In Consumers
A consumer sought legal help on JustAnswer about cancelling a six-year Choice Home Warranty contract. Customer reviews describe sales representatives pressing buyers into multi-year upfront terms to 'lock in' a rate. Combined with auto-renewal terms and a cancellation fee of up to $50, long prepaid contracts raise the cost of switching.
James Mostofi Appointed CEO, Founder Becomes Chairman
Choice Home Warranty appointed James Mostofi as CEO, replacing co-founder Victor Hakim who transitioned to Chairman. Mostofi brought 17 years of experience from AIG and Service Net Holdings, including expertise in warranty and insurance industry operations. The leadership change signaled a professionalization of management but did not alter the company's fundamental business practices around claim adjudication or telemarketing.
CHW Acquires Home Warranty of America Assets
Choice Home Warranty acquired certain assets of Home Warranty of America (HWA), a company founded in 1996 and known as a national provider of home warranties sold through real estate professionals, and kept HWA as a stand-alone brand. Choice said the deal made it the nation's third-largest home warranty provider, servicing more than 750,000 customers. Financial terms were not disclosed.
TCPA Class Action Cites Nearly 40 Prior Telemarketing Lawsuits
A new TCPA class action filed against Choice Home Warranty alleged the company had already faced 'nearly 40 lawsuits' for illegal robocalls and spam texts. The complaint detailed that CHW called National Do Not Call Registry numbers without permission and that responses to stop-calling requests ranged from 'ignoring them, to hanging up, to rude comments, to attempting to solicit payment for placement on the do-not-call list.'
WKYT Investigation Warns Consumers About CHW Practices
WKYT in Kentucky reported that the Kentucky Attorney General's office had an ongoing investigation into Choice Home Warranty and had received 47 consumer complaints since 2018. The report cited the 2015 New Jersey settlement, the 2019 Arizona AG lawsuit, more than 11,000 BBB complaints in three years and a D+ BBB rating; a BBB spokesperson warned that 'all home warranty companies are not created equal.' Choice did not respond to requests for comment.
Georgia Prohibits CHW Sales for Surety Bond Failure
The Georgia Office of the Commissioner of Insurance issued a cease-and-desist order in March 2024 and on April 10, 2024 barred Choice Home Warranty from selling warranty and service contracts in the state, saying it had failed to post the required $100,000 surety bond despite warnings. On May 15, 2024 the office fully rescinded the order, finding the company had kept a surety bond on file continuously since April 2020 and had corrected its contracts to name the right bond issuer.
Georgia Rescinds CHW Cease-and-Desist Order
Georgia's Office of the Commissioner of Insurance fully rescinded its cease-and-desist order against Choice Home Warranty after finding the company had kept a surety bond on file continuously since April 24, 2020; the contracts had named the wrong bond issuer, which the company corrected.
Employee Reviews Describe Micromanagement and No HR Department
An Edison, NJ employee's Glassdoor review listed 'no known human resources department' and a 'hostile environment' among the company's cons. Indeed reviews similarly describe 'very much a micromanagement company' with a high-pressure environment and unrealistic expectations, disciplinary points for calling out without sick time that eventually lead to termination, and changes to the bonus structure that made bonuses harder to earn.
Court Rejects CHW Dismissal Motion in Bradshaw TCPA Case
In Bradshaw v. CHW Group, the U.S. District Court for New Jersey denied Choice Home Warranty's motion to dismiss a TCPA class action and its motion to strike, finding the prerecorded-voice and revoked-consent allegations sufficient and inferring that the company had no internal do-not-call policy. TCPA defense lawyer Eric Troutman wrote that the arguments 'seemed doomed to failure'.
Court Rules CHW May Face Double TCPA Damages Per Call
In Jubb v. CHW, the U.S. District Court for New Jersey refused to dismiss a double-claim TCPA case, ruling that Choice Home Warranty could potentially be required to pay damages twice for each illegal call -- once for the DNC violation and once for the time-restriction violation. Legal commentators described this as a 'massive TCPA loss' that opened the door to 'double dipping' by plaintiffs.
CHW Loses Dobronski TCPA Motion and Appeal Bid
In Dobronski v. CHW Group (E.D. Mich.), the court refused to dismiss claims over eleven telemarketing calls and denied Choice's request for an interlocutory appeal. TCPAWorld listed it with CHW's losses in Jubb, Bradshaw, Zononi and Katz and said the company was 'leading the charge when it comes to spending money on TCPA defensive strategies that just don't work.'
H.I.G. Capital Invests in Rely Home (CHW Parent)
Private equity firm H.I.G. Capital, with $70 billion under management, closed an investment in Rely Home, the parent entity operating Choice Home Warranty, Home Warranty of America, and Home Service Club. Founder Victor Hakim retained a significant ownership stake. The deal included debt refinancing from JPMorgan Chase and Citizens Bank. The PE investment introduced new extraction vectors typical of alternative asset ownership.
Fifth TCPA Class Action Filed Against CHW in 2025
Attorney Abbas Kazerounian filed a TCPA class action against Choice Home Warranty on behalf of Kyle Trauberman over unwanted promotional text messages, the fifth TCPA class action against the company in 2025 after suits filed in Chicago (February), Oregon (March), Las Vegas (April) and Texas (August). TCPAWorld's Eric Troutman said CHW 'may have the worst record in TCPAWorld' and that 'they just keep losing', noting three adverse rulings that year.
User Agreement Sets Auto-Renewal, Phone Cancellation and Arbitration Terms
Choice Home Warranty's homeowner user agreement provides that fixed-term contracts automatically renew into a monthly plan at the prevailing monthly rate unless the customer cancels, that monthly plans renew unless the customer gives written notice 30 days before the term ends, and that customers should cancel by calling a toll-free number. Cancelling customers pay an administrative fee of up to $50, service costs already incurred are deducted from any pro-rata refund, and if service costs exceed the refund the customer may owe the difference. Disputes go to mandatory individual AAA arbitration with a class action waiver. The company also reserves the sole right to select the service provider and to pay cash at its own cost in lieu of repair.
New York Fines CHW $92,800 for Do Not Call Violations
New York's Department of State entered a consent order resolving alleged violations of General Business Law section 399-z for unsolicited telemarketing calls to consumers on the Do Not Call registry. CHW Group agreed to pay a $92,800 civil penalty and to register as a telemarketer in New York before any future telemarketing there.
Arizona AG Announces $11.8M Settlement, Largest in State History
Arizona Attorney General Kris Mayes announced an $11.8 million settlement with Choice Home Warranty, the largest home warranty consumer fraud settlement in state history. The judgment, entered January 23, 2026, required CHW to reform sales practices and provide meaningful disclosure to consumers before selling warranties. The lawsuit, filed in October 2019, had taken over six years to resolve. The AG noted the company 'pocketed millions of dollars from Arizonans, particularly veterans, senior citizens, and others living on fixed incomes.'
Arizona Opens Restitution Claims for CHW Customers
The Arizona Attorney General opened an online restitution process for customers who bought a Choice Home Warranty contract by phone for an Arizona property, with claims due by August 1, 2026. Restitution of up to the full purchase price is paid as funds arrive: the settlement lets the company pay $275,000 a month for 24 months and then $125,000 a month for 41 months.
Utah Court Limits Class Discovery in Cameron TCPA Suit
In Cameron v. CHW Group (D. Utah), a putative class action over calls to Do Not Call registry numbers, the magistrate judge enforced a bifurcation order and refused to compel class-wide discovery of CHW's affiliates, outbound numbers and vendors, confining discovery to the named plaintiff's calls.
Rely Home Hires COO to Drive Growth
Rely Home named former Jenny Craig CEO and Continental Battery Systems COO Mandy Dowson as chief operating officer, overseeing Choice Home Warranty, Home Warranty of America, The Home Service Club and Lineguard Solutions. The release highlighted her record of profitability initiatives and the 'rapid expansion' of Rely's brands.
Denver7: Colorado Owner Denied on Five 'Platinum' Policies
Denver7 reported on an Aurora property manager who bought five 'platinum' Choice policies at a little over $1,500 each. Choice denied his AC claim as 'a restriction in the system, not normal wear and tear' without supporting detail, and paid $300 toward a $1,200 range-hood repair after an appeal. Colorado's Division of Real Estate told the station home warranty contracts are not regulated in the state.
Law Firm Investigates CHW HVAC Claim Denials
Migliaccio & Rathod LLP opened an investigation into reports that Choice Home Warranty denies or delays HVAC claims by broadly applying exclusions and mischaracterizing contractor findings, changes its explanation when challenged, offers partial 'goodwill' payments, and requires homeowners to pay for repairs upfront before reimbursement is considered.
Evidence (46 citations)
D1: User Value Erosion
D2: Business Customer Exploitation
D3: Shareholder Extraction
D4: Lock-in & Switching Costs
D5: Twiddling & Algorithmic Opacity
D6: Dark Patterns
D7: Advertising & Monetization Pressure
D8: Competitive Conduct
D9: Labor & Governance
D10: Regulatory & Legal Posture
Scoring Log (8 entries)
Checked 73 items + prose. 29 verified, 33 corrected (6 date-only), 7 re-sourced, 4 removed (3 unsupported timeline events from 2010/2012/2015, 1 junk SEO evidence page). Main fixes: 'part and parcel' was a complaint allegation, not a court ruling; Foreman deal was Nov 2018, not 2020; Georgia order was rescinded; Oklahoma already had three orders by 2020; KSHB 3,000-complaint story is from 2018; the first TCPA suit was filed Jan 2021 and did not cite 40 suits. Removed the unsupported '900 of 1,000 technicians', $2,975 contract, pending-claim forfeiture and $300M revenue claims. Parent updated to Rely Home, Inc.
57->52. D1 7->6 (event: BBB complaints closed in 3 yrs fell to ~9,700 from 11,700+ in 2024); D2 6->5 (correction: '900 of 1,000 technicians' removed; no contractor complaints after 2020); D3 5->4 (recalibration: private/PE-backed, no dividend or layoff extraction evidence; 'settlements cheaper than denials' was speculation); D6 7->8 (recalibration: user agreement requires phone cancellation plus service-cost clawback, deceptive phone enrollment and DNC telemarketing fit the 8-9 row; NY DOS $92,800 penalty Feb 2026 supports); D7 6->5 (recalibration: paid product with no ads; fees/caps/add-ons fit 4-5); D9 5->4 (recalibration: Glassdoor 3.8/5, 74% recommend vs negative Comparably/Indeed; mixed, no labour actions); D10 8->7 (correction: 'part and parcel' was an allegation, Georgia order rescinded; no capture/SLAPP/lobbying record). Eras: 'Startup Hustle' and 'Complaint Surge' kept (re-scored); 'Post-Settlement Expansion' re-dated 2016-01-01->2015-06-15 (NJ settlement); 'Telemarketing Siege' re-dated 2020-01-01->2019-10-02 (AZ suit) and relabeled 'Lawsuits and Robocalls'; current era re-dated from assessment date 2026-02-17->2025-11-12 (H.I.G. investment) and relabeled 'PE Backing and Settlement'. Since Nov 2025: H.I.G. investment in Rely Home; AZ $11.8M consent judgment (Jan 23, announced Feb 10) and restitution portal (Mar 26); NY DOS DNC consent order (Feb 9); TCPA losses (Dobronski Nov 2025) and new suits (Cameron, D. Utah); Rely COO hire (Jun 2026); Denver7 report and Migliaccio & Rathod HVAC-denial investigation (Jul 2026). Fixed AZ settlement event/evidence date 02-11->02-10; expanded user-agreement event (phone cancel, clawback, arbitration). Ignored lawfold.com's '$100M FTC settlement' (no such action exists; AI-generated content). Description still cites George Foreman endorsements; whether the campaign is still running was not verified. Category looks right.
Checked 12 removed/trimmed claims: 0 restored, 0 partly restored, 12 confirmed removed. California venue for the fifth 2025 TCPA suit is contradicted: the Trauberman complaint (TCPAWorld-hosted PDF, Case 2:25-cv-17641) was filed in the District of New Jersey. User agreement (fetched) has no pending-claim forfeiture clause; nothing dates those terms to 2011. '900 of 1,000 technicians', $2,975 six-year contract, phone-cancellation refusal and replacement-card charges not found in BBB Wayback snapshots (2025-04, 2026-02) or searches. $12,000 HVAC-Talk figure unconfirmed (thread unreadable, no archive); the 30 A/C repairs/$7,000 account traces only to a user's Avvo legal Q&A post, which does not meet evidence standards. No source for 2010 low-cost model, 2012 telemarketing complaints, 2015 $35-45 vs $45-75 pricing, 2015 dating of Glassdoor reviews, or the BBB review-incentive 'inflated scores' inference.
Triaged 2026-06-30 (Wave A); no rescore warranted (no material change / changes sub-threshold / flag refuted on verification).
Added 1 missing dimension narrative