NJ AG Teaches Service Contracts Industry A Lesson

Law360, New York (September 8, 2015, 10:38 AM EDT) -- The residential home service contracts industry can expect increased regulatory review as a result of a high-profile, recent enforcement action by New Jersey Attorney General John Jay Hoffman. In this action, the New Jersey attorney general disciplined a home warranty company, CHW Group Inc., which transacted business as Choice Home Warranty and was ordered to pay the state nearly $780,000, an amount that includes both fines and consumer restitution. CHW must also revise its business practices and retain a compliance monitor for at least one year. While this action involved one company's questionable business practices, it serves as an important call for the service contract industry generally to review compliance procedures....

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