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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Legal
Satisfied Customers: 113453
Experience:  JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
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American Home Shield holding my money thats been pre

Customer Question

American Home Shield holding my money thats been pre authorized
Submitted: 1 year ago.
Category: Legal
Customer: replied 1 year ago.
I have been an HVAC vendor for American Home Shield going on 5years. I service around 10,000 homes a year for them, I recently have a higher than normal cost average and they have put my account on hold and they are not releasing my funds. The invoices were submitted online as I have done for 5 years now, I have a pre-authorization limit of 750.00 dollars per call without having to call for authorization to perform work. All of the invoices are below or at the authorization limit.
Expert:  Law Educator, Esq. replied 1 year ago.

Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.

Legally, they must pay your invoices when due in accordance to your contract with them. If they are not paying on time, you need to start by sending them a letter, not an email, demanding payment and informing them that failure to pay is breach of contract and you would pursue legal action including attorney's fees to collect the payment if not paid within 5 business days.

If they refuse to make payment upon your demand to cure their breach of your contract, then your remaining recourse against them is you would have no other choice if you want your money except to sue (or file arbitration if your contract with them mandates arbitration).