IRVING, Texas, Dec. 15, 2021 (GLOBE NEWSWIRE) — In response to allegations made by Howards Appliance Inc., Richard Gavino, president and co-founder of New Leaf Service Contracts Inc. has issued the following statement:
“In the first instance, New Leaf completely disputes any allegation that it has ever operated in California without a license. In fact, the Obligor on the contracts sold by Howards Appliance was 4Warranty Corporation and Lyndon Southern Insurance Company was the insurer. These are both wholly owned companies of Fortegra Insurance Co. which is rated an A by AM Best and is properly licensed in California.
In addition, New Leaf categorically denies Howards Appliance’s allegation that New Leaf did not properly service its customers. New Leaf has satisfied more than 9,700 customers with payments of claims of over $1.5 million for Howards Appliance over the five years prior to expiration of the Agreement (and over 2,600 customers with payments of claims over $550,000 have been completed since our agreement with Howards Appliance was terminated). New Leaf will continue to administer all service contracts issued and paid by Howards Appliance until the expiration of every such service contract.
Interesting to note, prior to the Dealer Agreement’s expiration, Howards Appliance sought a contract renewal proposal from New Leaf for another five years. I find it absurd that Howards would ask us for a renewal proposal if they were displeased with New Leaf’s performance.
New Leaf Service Contracts Inc. values our highly-rated reputation in working with dealers and was built on a foundation of outstanding customer care and support.
- We have an A rating by the Better Business Bureau.
- We have been in business over 10 years, have had more than 600 dealers and have serviced more than seven million consumers.
- Prior to this complaint, the allegations of which we vigorously dispute, we have never had a legal action filed by a retailer against us.
New Leaf vows to defend the truth vigorously, and I encourage anyone with questions to contact me.”
About New Leaf Service Contracts Inc.
Founded in 2011, New Leaf Service Contracts Inc. is one of the few, remaining, independent third-party administrators of extended protection plans. Working through dealer partners, we bring integrity, transparency, and partnership to every customized program. For more information, visit newleafsc.net.
CONTACT: Media Contact: Virginia Stuart vstuart@vista-cs.net
