Homeowner signs up after 'final notice' home warranty mailer, then says company won't cancel

Buying a home is stressful enough without also having to wonder whether a "final notice" in the mail is legitimate, or whether one rushed phone call could leave you scrambling to get your money back.

One new homeowner told the r/FirstTimeHomeBuyer subreddit that is exactly what happened after responding to a home warranty mailer.

Here's what to know

In a Reddit thread, they described how a home warranty solicitation labeled as a "final notice" led them to call the company. The original poster ended up paying a deposit during what they described as a high-pressure sales conversation.

They said the doubts came afterward, once they looked the company up online and realized "most of the stuff they were talking about was bs according to google." The poster added, "Now they wont let me cancel stating that since I just signed up I have to wait 5-7 business days."

"Despite even if the booklet offered the best deal I want no connection to their company based on sales tactics alone," they concluded.

One commenter advised: "You don't want any of these. Call back, keep asking to speak with a supervisor. Do a charge back on your credit card."

Several replies said the mailers can keep showing up well after the purchase. 

"I still get these 1 year after buying," one commenter wrote. "Always looks like an important letter and I open it up and throw it away lol."

More background

The homeowner said the letter seemed credible because "the only reason I called them was because they had the name of my lender on the front of their letter," though they added that small print at the bottom said there was no affiliation.

Another commenter said similar tactics can show up in electricity-related offers, with mailers using a utility company's name and promises of a credit while steering people into pricier contracts.

"My sage advice is if you get it on your door and in your email and it's not something you're already involved with toss it," a commenter offered.

What can be done?

Replies focused on escalating the issue and cutting off payment access. Posters suggested the OP keep calling, ask for a supervisor, and contact the bank or card issuer about stopping further charges if the company will not cancel. 

"Look into setting up stop payment through bank or CC provider if they won't let you cancel outright," another commenter suggested.

The OP said they had already frozen the card and were considering replacing it, which could help prevent further withdrawals while the dispute is being handled. 

"Live and learn I guess," they concluded. "Luckily I am only fighting for $100 at this point and nothing more. Even my account only has like $100 in case they try taking more with out notice."

Where can I learn more?

Confusing or alarming mail doesn't stop with home warranty offers. 

• In Utah, homeowners were rattled by a notice from an insurance company and urged to question agents.

• California homeowners called non-renewal notices very dishonest after bizarre inspection-related wording raised alarms.

• In Colorado, insurers sent callous policy re-evaluations that left homeowners bracing for coverage losses.

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