Service Contract Association formed to fight scams

DALLAS, TX — Residential service contract sales are reaching record highs in Texas. With record sales, the number of scams tends to increase, too. Therefore, the state’s leading service contract firms have formed the Texas Warranty Association (TWA).

Sharon Harrison, president of Nations Preferred Home Warranty, Dallas, and the first president of TWA, stated that its members represent approximately 99% of residential service contract sales in the state.

“Because of dramatic population growth in Texas, particularly in urban areas like the Dallas Metroplex, Austin, and Houston, the growth potential for residential service contract sales is enormous,” said Harrison.

The association’s goals include:

  • Establishing ethical standards for residential service companies conducting business in Texas;
  • Initiating a program of government relations on behalf of the industry; and
  • Maintaining a liaison with the Texas Real Estate Commission and Texas Association of Realtors.

TWA reported that, based on TREC data, 266,645 residential service contracts were sold in Texas during 1999. This represents an increase of approximately 20% over 1998, and nearly a 70% increase compared to 1996, when 155,705 contracts were in place.

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