Attorney General Abbott Files Action To Halt Business Of Unlicensed Home Warranty Company

National Home Protection, Inc. also cited for deceptive trade practices

AUSTIN – Texas Attorney General Greg Abbott today charged a New York-based home warranty company with unlawfully doing business in Texas. The state’s enforcement action seeks to prevent National Home Protection, Inc. from doing business in Texas until it is licensed by the state and complies with requirements of the Texas Occupations Code. The Attorney General also is seeking restitution for Texas homeowners who purchased the defendant’s warranties but did not receive the services they were promised under the warranty contracts.

According to state investigators, National Home Protection continued selling “residential service contracts” to Texas homeowners even after the company was specifically informed about licensure and other requirements. The defendant ignored the Texas Real Estate Commission’s demand that it cease operations in Texas and return any money received from Texans. Meanwhile, Texas customers continued to complain that the company refused to repair or replace various home systems.

The state’s enforcement action charges National Home Protection with violating the Texas Occupations Code by failing to obtain a license, maintain a funded reserve against their liabilities and file annual reports with the state. The company also is charged with violating the Texas Deceptive Trade Practices Act (DTPA) by operating without a license in Texas.

In addition to homeowner restitution, the state is seeking civil penalties under the Occupations Code and up to $20,000 for each violation of the DTPA.

Texas homeowners who believe they have been defrauded by similar practices should contact a private attorney experienced with residential construction defects and real estate law. San Antonio attorney Trey Wilson is experienced at real estate-related lawsuits. He was recently named as one of San Antonio's best real estate litigation attorneys by Scene in SA Magazine. Trey Wilson may be reached at (210) 223-4100 or online at www.sa-law.com