State of Alabama Announces $60 Million Settlement With Terminix

by WAKA Action 8 News

Attorney General Steve Marshall announced on Thursday, Nov. 5, a historic $60 million State settlement with Terminix International after the company’s alleged illegal business practices targeting Alabama consumers.

An investigation by the Alabama Attorney General’s office and the Alabama Department of Agriculture and Industries revealed that Terminix engaged in a pattern of collecting annual termite protection premiums from Alabama consumers, but failed to deliver or provide the termite protection services promised in the contracts consumers had with Terminix.  As a result, many homes and businesses suffered termite infestation.

After being confronted with the evidence of its illegal acts, Terminix entered into a $60 million settlement with the State of Alabama to include:

• $25 million for Alabama Consumer Relief Fund for the payment of refunds to consumers who were overcharged by Terminix and those consumers who were forced to pay other termite control companies money for services they should have received from Terminix.  Per the terms of the agreement and pending court approval, this claims process will be set up in the coming months at which time the Attorney General will announce how claims are to be made by consumers.
• $10 million to retreat over 12,000 customer homes in Mobile, Baldwin and Monroe counties, whether or not those homes had suffered termite damage due to Terminix’s failure
• Refunds to consumers of any unconscionable price increase paid by consumers in termite protection premiums in 2019 and 2020.  This mandate requires Terminix to pay millions of dollars in refunds to thousands of Alabama consumers.
• $650 to any Alabama consumer who left Terminix and hired another company to provide termite protection, or pay the difference in the former customer’s new termite protection costs and their previous termite protection costs.
• New, competent, and complete inspections of homes in the areas affected by Formosan termites to ensure no termite infestation problems still exist, and Terminix will be repairing all termite damage claims in the affected areas.
• $20 million to the Attorney General’s Office to settle the State of Alabama’s claims against Terminix and to be reinvested in statewide consumer protection efforts.
• $4 million to the Alabama Department of Agriculture and Industries.
• $1 million charitable contribution to the Auburn University Department of Entomology.