A computer glitch is to blame for 3,800 Akron-area residents receiving what many perceived to be a scam letter from a company offering water- and sewer-line protections.
The letters, coming from Service Line Warranties of America, congratulate the recipient for choosing the Right of Way Sewer program coverage and notifies the customer of a seven-day cancellation policy. The bill also asks for a 50-cent payment.
But customers who received the letters said they didn’t sign up for anything and knew nothing about the company.
It turns out the letters were actually meant for customers in Arlington, Texas, said Myles Meehan, senior vice president of public relations for Homeserve USA, the parent company of Service Line Warranties of America.
But to add a little confusion to the mix, Service Line Warranties of America was approved by the city of Akron to offer the optional water- and sewer-line protection services to the city’s 100,000 customers in the next month or so. Akron also offers water- and sewer-line service to several communities outside of Akron.
“We were preparing the mailing list to actual homeowners and during the process, frankly, a mistake was made” and the 3,800 erroneous Akron addresses were merged with those of a program in Texas, said Meehan.
Meehan said the company offers protection programs in conjunction with 400 cities across the U.S. and “this is the first time an error has occurred for us. We are putting in new safeguards. This has been a pretty big deal for us and we regret the confusion.”
City of Akron spokeswoman Ellen Lander Nischt said Homeserve officials contacted Akron officials on Tuesday about the letters — which appear to have arrived over the weekend and Monday to the wrong addresses — to alert them of the issue and resolution. New letters are being sent to the affected customers to tell them nothing needs to be done and to apologize for the error, both Nischt and Meehan said.
Akron resident Bob Belfance said his first impression when he received the letter was that it was a scam.
“I thought it was a scam primarily because I was out of town the day they purported they called me and No. 2, I had no record on my phone of them calling me,” said Belfance, who was among residents who contacted the Beacon Journal asking about the letter. Belfance also eventually got a hold of a customer service representative at the company who explained the mistake. Some customers who received the letter said they were scared to phone the number, afraid it was a scam.
Belfance said “maybe [the city] ought to take a second look to see how good they are in terms of following up on detail,” he said of the company and its glitch.
Meehan said the company, headquartered in Norwalk, Conn., is endorsed by the National League of Cities. There are more than 3 million customers.
The company mostly offers optional insurance for customers, which is around $5 a month for each of the water- and sewer-line programs. The Texas program was unique in that it was a mandatory program through the city. The letter erroneously received in Akron was to opt-out of the Texas program and contained a number of errors, including pricing, Meehan said.
Customers have to make their own decisions about whether the program is needed, Meehan said.
Water and sewer lines from the sidewalk to a house are the responsibility of the homeowner, said Meehan and Nischt.
Meehan said the company’s research shows that homes built between 1955 and 1985 have experienced the most water- and sewer-line breaks. It also depends upon the material used for the pipes, but Meehan said most people wouldn’t know that.
Costs to repair a water- or sewer-line break without insurance could range from $500 to $2,500, depending upon the severity, he said.
The program has no deductible or pre-inspection.
Nischt said the city has endorsed the company, thinking it would be helpful to residents. The program has nothing to do with the city’s current sewer work, she said.
The real introductory letter should be sent to Akron water and sewer customers in the next month or so, said Meehan. Coverage will be optional and customers who do not want the coverage will not need to do anything to opt out. Only customers who want the service and mail in the letter will get the coverage, he said.
Meehan said when the program is launched to Akron residents, it will be for Water Service Line coverage and will be offered for $3.99 per month. The plan provides up to $4,000 per covered incident with no deductible for the cost to repair or replace the homeowner-owned portion of a broken, frozen or leaking primary water service line, from the municipal water system up to the internal point of entry of the home. There will also be a sewer line plan available to residents as well for $4.99 per month.
Betty Lin-Fisher can be reached at 330-996-3724 or blinfisher@thebeaconjournal.com. Follow her @blinfisherABJ on Twitter or www.facebook.com/BettyLinFisherABJ and see all her stories at www.ohio.com/betty