Office of the Attorney General
Attorney General Conway Reaches Agreement with Home Service USA over Water Line Service Coverage Solicitation

Press Release Date:  Friday, February 26, 2010  
Contact Information:  Shelley Catharine Johnson
Deputy Communications Director
502-696-5659 (office)
 


Attorney General Jack Conway and his Office of Consumer Protection today announced an agreement has been reached with Home Service USA and Home Service USA Repair Management regarding solicitations that were mailed last month to consumers in several Kentucky counties offering water line repair services.

The mail piece generated confusion and numerous complaints from consumers and public utility officials due to its design and wording, which suggested that the service was a mandatory fee imposed by the utility company. Under the agreement, known as an Assurance of Voluntary Compliance and filed today in Franklin Circuit Court, Home Service USA will mail corrective letters to all Kentucky consumers who purchased, or will purchase, water line repair services. The letters will clarify that the service is optional and not required by the consumer’s water utility company or local government. The consumer will also be given the opportunity to cancel the service by notifying Home Service USA within 30 days of the corrective letter and receive a full refund of any monies paid.

"I am pleased at the cooperation offered by Home Service USA and the swift action to ensure that Kentucky consumers are not misled by the original solicitation," said General Conway. "I also appreciate the vigilance of our consumers and utility officials in bringing this matter to our attention."

In addition to the corrective measures, Home Services USA will pay a total of $7,500 to the Commonwealth for civil penalties and the costs of investigation. Consumers who have concerns about a solicitation can contact the Attorney General's s Consumer Protection Hotline at 1-888-342-9257 or file a complaint online at www.ag.ky.gov.