Choice Home Warranty Lawsuit 2026: Arizona $11.8 Million Settlement Update
Quick Answer
- It’s real: Arizona’s attorney general settled a consumer fraud suit with Choice Home Warranty. The company denies wrongdoing.
- Choice agreed to pay $11.8 million. Eligible Arizona buyers may get up to the full warranty price.
- The claim form listed August 1, 2026 as the deadline, which has passed. Late-claim rules: not yet confirmed.
The Choice Home Warranty lawsuit is real, and it ended in an $11.8 million settlement. Kris Mayes, Arizona’s attorney general, announced it February 10, 2026, after six years of litigation.
It covers Arizona customers who bought a warranty by phone between 2013 and 2023. The claim form listed August 1, 2026 as the filing deadline, and that date has passed.
Below, you’ll find who qualified, what payouts may look like, and what happens next. The state says its agents will periodically pose as homeowners and test the company’s sales calls.
The Facts
| Item | Detail |
|---|---|
| Case | Arizona Attorney General’s consumer fraud lawsuit against CHW Group, Inc., doing business as Choice Home Warranty |
| Status | Consent judgment entered January 23, 2026; company pays in installments |
| Fund Size | $11.8 million |
| Est. Per Person | Not yet determined; up to the full warranty purchase price |
| Claim Deadline | August 1, 2026 (passed); late claims not yet confirmed |
| Administrator | Arizona Attorney General’s Office |
| Proof Needed | Purchase details requested; forgetting some details does not automatically disqualify you |
| Court and Case Number | Not yet confirmed |
Is the Choice Home Warranty lawsuit real?
Yes. Arizona’s consumer fraud case ended in a consent judgment on January 23, 2026.
The Arizona Attorney General’s Office filed the suit in 2019. Attorney General Kris Mayes took over the case after entering office in 2023, according to Courthouse News Service. The state announced the deal on February 10, 2026.
The case came close to trial. Mayes said it nearly reached trial the week before her announcement. The state’s outside trial counsel, Gallagher & Kennedy, said it settled on the eve of a trial expected to run about 2.5 months.
Here’s what many headlines skip. This is a state enforcement case, not a private class action. The sources we checked mention no claims administrator, opt-out window, or final approval hearing.
The court and case number are not yet confirmed. Courthouse News Service posted the consent judgment with its coverage.
Did Choice Home Warranty admit wrongdoing?
No. Choice Home Warranty denies the allegations and admitted no wrongdoing in the settlement.
The state’s press release says so plainly. That language is common in consent judgments, and it matters for how you describe this case. Arizona alleged consumer fraud. A judge did not rule after a trial.
Here’s what the state alleged:
- Telephone sales reps failed to disclose exclusions and limits that cut a warranty’s value.
- Some reps misrepresented what repairs or replacements a plan would cover.
- The company failed to replace air conditioners and other appliances it advertised as covered.
Both things are true at once. The company denies fault, and it agreed to change how it sells.
A denial paired with an $11.8 million payment is worth reading closely. Measure the money against the 1,500 complaints the state cited.
Is there a $100 million FTC settlement with Choice Home Warranty?
Not yet confirmed. No FTC case or $100 million settlement showed up in the official sources we checked.
Some web pages claim an FTC action produced a $100 million judgment. We could not match that figure to an FTC release, a court record, or an Arizona or New Jersey filing. Until a primary source appears, treat it as unverified.
Here’s the verified record:
| Action | Year | Amount | Status |
|---|---|---|---|
| New Jersey Division of Consumer Affairs | 2015 | $779,913.93, including consumer restitution | Final consent judgment |
| Arizona Attorney General | 2026 | $11.8 million | Consent judgment entered January 23, 2026 |
| FTC, $100 million | Not confirmed | Not confirmed | Not yet confirmed |
If a page lists a $100 million fund and asks for your details, stop. Check it against the Attorney General’s own claim page first.
Key Takeaway: Arizona’s $11.8 million judgment is verified, while a $100 million FTC payout is not yet confirmed.
How much is the Choice Home Warranty settlement worth?
The settlement is worth $11.8 million, payable by Choice Home Warranty to the State of Arizona.
The Attorney General’s Office calls it the largest home warranty settlement in Arizona history. Gallagher & Kennedy said it believes the deal is the largest in the country for claims of this type. That’s the firm’s claim, not an independent ranking.
Not every dollar necessarily goes to customers. The sources we checked don’t say how the state will split the $11.8 million between restitution and other uses. That split is not yet confirmed.
For scale, New Jersey’s 2015 deal with the same company totaled about $780,000. The Arizona deal adds sales-practice changes, which carry no dollar figure. Those terms are covered below.
How much money could you get from the Choice Home Warranty settlement?
Eligible claimants may get up to their warranty’s full purchase price. The exact amount is not yet determined.
The Attorney General holds the decision. The claim form says eligibility and amounts rest in the Attorney General’s sole discretion. It adds that not all customers will qualify.
For context, a 2019 report cited court documents showing the company sold contracts for $420 to $750. Treat that range as background, not a payout estimate. Your refund depends on what you paid and what the state approves.
| Question | What the sources say |
|---|---|
| Maximum per claimant | Up to the full purchase price of the warranty |
| Typical payout | Not yet determined |
| Who decides | Arizona Attorney General’s Office, sole discretion |
| Payout tiers or formula | None published in the sources checked |
| Timing | Rolling basis as funds arrive |
No payout formula exists in the public record we reviewed. The company pays in installments, so the state can’t fund every refund at once.
How will Choice Home Warranty pay the $11.8 million?
Choice Home Warranty will pay in monthly installments over several years.
Courthouse News Service reported two stages. The company pays $275,000 a month for 24 months, then $125,000 a month for 41 months. Payments run until the full $11.8 million is paid.
Think of a payment plan on a big appliance. The store announces the total, but you only see money as each installment posts.
| Stage | Monthly payment | Months | Subtotal (our arithmetic) |
|---|---|---|---|
| Stage 1 | $275,000 | 24 | $6,600,000 |
| Stage 2 | $125,000 | 41 | $5,125,000 |
| Both stages | 65 | $11,725,000 |
Those two stages add up to about $11.7 million. How the remaining balance is handled is not yet confirmed. The first payment date is also not yet confirmed.
Sixty-five monthly payments mean more than five years. That’s the pace behind any restitution.
Reality Check: The sources we checked describe no filing fee, and the process runs through the Attorney General’s Office. Be wary of anyone who texts you a payout or asks for upfront money. Verify any message against the Attorney General’s own claim page.
Key Takeaway: Choice pays over years, so restitution arrives on a rolling basis, with amounts not yet determined.
Who qualifies for the Choice Home Warranty settlement?
You may qualify if you bought a policy by phone for an Arizona home.
The Arizona Attorney General’s Office set the criteria. Here’s the checklist from its press releases and claim page:
- You bought a warranty from Choice Home Warranty (CHW).
- You bought it over the phone.
- The home or property is in Arizona.
- You bought it between January 1, 2013 and January 1, 2023.
- You completed the Attorney General’s online form by August 1, 2026.
The sources show one date conflict. The claim page’s opening text cites purchases through December 31, 2025.
Its own question and the press releases cite 2023. Which date governs is not yet confirmed.
You didn’t need a separate consumer complaint. Only people who completed the form were eligible. The stated criteria name phone purchases only.
Can you still file a Choice Home Warranty claim after August 1, 2026?
The claim form required filing by August 1, 2026, so that window has passed.
We found no notice of an extension. That isn’t proof that none exists. Money.com’s October 2026 roundup treats the deadline as passed.
Whether late claims will be accepted is not yet confirmed. Only the Attorney General’s Office can answer that. Ask in writing and keep a copy.
Here’s what to do now:
- Filed on time? Keep your confirmation and your warranty records.
- Missed the date? Ask the office whether late claims are accepted.
- Unsure what you filed? Ask the office to confirm your submission.
- Never pay anyone to file or “speed up” a claim.
The claim page warns that false information disqualifies a claimant. Accuracy matters more than speed here.
How do you file a Choice Home Warranty settlement claim in Arizona?
Claims went through an online form on the Attorney General’s website. The posted deadline has passed, so check with the office first.
Here’s how the process worked:
- Confirm the Attorney General’s Office still accepts claims.
- Gather your warranty paperwork, purchase date, and property address.
- Find the Choice Home Warranty settlement form on the Attorney General’s website.
- Enter your contact details.
- Confirm you bought by phone for an Arizona property.
- Say whether CHW misrepresented coverage or withheld key information.
- Note anything you can’t recall in the comments section.
- Submit the form and save your confirmation.
The state says you didn’t need to call the complaint line or file a separate complaint. It also says forgetting some details won’t automatically disqualify you. Honest gaps beat guesses.
Restitution is paid as funds arrive. Filing doesn’t guarantee money.
Key Takeaway: Arizona’s posted claim deadline passed August 1, 2026, and late-claim rules are not yet confirmed.
When will Choice Home Warranty settlement checks arrive?
Restitution is paid on a rolling basis, and no payment date is confirmed.
The claim page says restitution may not be immediately available to all claimants. It will be paid as the state receives money from the company. That’s closer to a tax refund paid in batches than a single mailed check.
Why the wait? The company pays the state in monthly installments over several years, per Courthouse News Service. The state says it will distribute restitution once adequate funds arrive.
| Item | Status |
|---|---|
| First restitution date | Not yet confirmed |
| Payment method | Not yet confirmed |
| Payment pace | Rolling basis |
| Who pays you | Arizona Attorney General’s Office |
| Public status tracker | None found in the sources checked |
Filing doesn’t guarantee a payment. Eligibility and amounts stay with the Attorney General. Questions about your claim belong with that office.
What does the consent judgment require Choice Home Warranty to change?
The judgment requires Choice to reform its sales practices and disclose coverage limits upfront.
Courthouse News Service reported that the company must give meaningful disclosures before a customer provides payment information. Those disclosures must explain what the warranty covers and what it doesn’t. Gallagher & Kennedy described the deal as carrying significant injunctive terms.
Here’s what the terms add up to:
- Reform of sales practices.
- Meaningful disclosures before a warranty is sold.
- A clear explanation of covered and excluded items before payment details are collected.
- Periodic checks by Attorney General agents posing as homeowners.
A promise on paper isn’t the same as behavior on a sales call. The state says it will check. We’ll watch for any compliance action.
New Jersey’s 2015 deal also required changes, and Arizona said the conduct seemed to continue afterward. That history is why the undercover checks matter.
What can you do if you live outside Arizona?
The Arizona restitution is limited to Arizona homes, so other customers need other routes.
We found no confirmed multistate or private class action settlement in the sources we checked. Here are the options on record:
- File a complaint with your state attorney general’s consumer protection office.
- Contact your state insurance regulator, since many states regulate service contracts. KJRH in Tulsa reported three cease and desist orders from Oklahoma’s insurance department.
- File a Better Business Bureau complaint and keep a copy.
- Ask your card issuer about dispute rules, because time limits apply.
- Use the company’s written claim appeal process and keep every record.
Kentucky’s attorney general told WKYT in 2023 that an investigation was ongoing. Its current status is not yet confirmed.
Rules differ by state. Your contract’s exclusions, payment caps, and appeal steps matter. Read them before you call.
Key Takeaway: Outside Arizona, we found no confirmed settlement, so complaints and records are your main tools.
What did Arizona say Choice Home Warranty did wrong?
Arizona said Choice Home Warranty advertised coverage it then failed to deliver.
The state’s 2019 complaint described contract exclusions, payment caps, and bad-faith refusals to pay for repairs. According to 2019 reporting, the state cited a $1,500 payment cap and a $500 cap for plumbing. It also described customers waiting four days in summer heat for a technician.
Think of buying a car warranty, then learning at the shop that the broken part is excluded. That’s the pattern the state described.
Two Arizonans shared accounts at the February press conference. A Scottsdale business owner said his air conditioner failed in June 2019 and he paid more than $2,700 himself. The family of a 93-year-old veteran said a coil replacement cost $5,800 out of pocket after a denial.
Those are accounts shared by the state, not court findings. Mayes said the company allegedly pocketed millions from Arizonans, especially veterans, seniors, and people on fixed incomes.
Why did Choice Home Warranty settle with New Jersey in 2015?
Choice Home Warranty settled with New Jersey after a 2014 state complaint alleged deceptive tactics.
The New Jersey Division of Consumer Affairs sued CHW Group, Inc. in July 2014. It alleged the company lured buyers with ads promising they’d never pay for covered repairs again, then denied claims. The division said the effects reached consumers in at least 25 other states.
The 2015 final consent judgment required the company to pay $779,913.93, including consumer restitution. It also required revised business practices and a compliance monitor for at least one year.
| Feature | New Jersey, 2015 | Arizona, 2026 |
|---|---|---|
| Amount | $779,913.93 | $11.8 million |
| Oversight | Compliance monitor, at least one year | Undercover checks by state agents |
| Alleged problem | Denied repairs after “never pay” ads | Undisclosed exclusions, misrepresented coverage |
Arizona said the company’s conduct seemed to continue after the New Jersey deal. Former Attorney General Mark Brnovich began Arizona’s investigation after that settlement.
How many complaints has Choice Home Warranty faced?
Arizona cited more than 1,500 complaints about Choice Home Warranty since 2013.
Those went to the Arizona Attorney General, the Arizona Department of Insurance and Financial Institutions, and the Better Business Bureau. Nationally, Live 5 News reported in June 2025 that more than 11,440 complaints reached the BBB over three years.
| Source | Count | Period |
|---|---|---|
| Arizona Attorney General, state insurance department, BBB | 1,500+ Arizona complaints | Since 2013 |
| BBB, per a 2019 report | 4,830 | As of June 28, 2019 |
| BBB, per Live 5 News | 11,440+ | Three years before June 2025 |
Raw counts need context. Larger companies draw more complaints, and the windows above differ. In an earlier statement to WPTV, the company said it had covered more than 1 million homes.
Live 5 reported Choice isn’t BBB-accredited but held a “B” rating. The current rating is not yet confirmed. The BBB’s public complaint page lists customer complaints and company responses dated September and October 2026, some offering refunds.
Key Takeaway: Complaint counts are context, not proof; the documented outcomes are two state settlements.
What happens next in the Choice Home Warranty lawsuit?
Here’s the verified sequence, followed by what’s still pending.
- January 23, 2026: The consent judgment was entered.
- February 10, 2026: The Attorney General announced the $11.8 million deal.
- March 2026: The restitution claim form opened.
- August 1, 2026: The posted claim deadline passed.
- Expected, ongoing: Rolling payments as funds arrive; the first date is not yet confirmed.
Frequently Asked Questions
Is Choice Home Warranty legit?
Choice Home Warranty is an operating company that denies wrongdoing, but two states have taken enforcement action.
New Jersey settled in 2015, and Arizona settled in 2026.
Read your contract’s exclusions and payment caps before you rely on coverage.
Who can get money from the Choice Home Warranty settlement?
Customers who bought a policy by phone for an Arizona property may qualify.
The press releases cite purchases from January 1, 2013 to January 1, 2023.
The Attorney General’s Office decides eligibility and amounts.
Is there a Choice Home Warranty class action settlement?
No private class action settlement is confirmed in the sources we checked.
The Arizona deal is a state consumer fraud settlement, not a class action.
Verify any claim to the contrary against official notices.
What was the Choice Home Warranty claim deadline?
The posted Arizona claim deadline was August 1, 2026, and it has passed.
Whether late claims are accepted is not yet confirmed.
Ask the Arizona Attorney General’s Office directly.
How much will I get from the Choice Home Warranty settlement?
Eligible claimants may get up to their warranty’s full purchase price.
Your amount is not yet determined.
Payments move on a rolling basis as the company pays the state.
Does the Arizona settlement stop me from suing Choice Home Warranty?
That is not yet confirmed, because the sources we checked don’t describe release terms.
A licensed attorney can review your situation and your contract.
Don’t assume the answer either way.
What should I do if Choice Home Warranty denies my claim?
Ask for the denial in writing and read the contract’s exclusions and caps.
Use the company’s written appeal process and keep every record.
Then consider complaints to your state attorney general, insurance regulator, or the BBB.
Start with the Arizona Attorney General’s Office. Ask whether late claims are accepted, and keep your warranty papers handy.
If you live elsewhere, file complaints with your state regulators. The posted Arizona claim deadline was August 1, 2026.
