MONTGOMERY, Ala. (AP) – Alabama has reached a $60 million settlement with Terminix International for systematically overcharging customers for termite services and failing to honor service contracts, Attorney General Steve Marshall announced Thursday.
The attorney general said the pest control company committed multiple violations of Alabama’s Deceptive Trade Practices Act.
“You had significant business practice fraud of Terminix that was prevalent throughout the state. You also had some unique issues involving Terminix and termite damage down at the coast,” Marshall said.
The deal will create a $25 million fund to compensate Alabama customers who were overcharged by Terminix. That fund will be replenished should the claims exceed that amount. Another $10 million will go toward additional termite treatments for over 12,000 customer homes in Mobile, Baldwin and Monroe counties. Alabama consumers who left Terminix and hired another company to provide termite protection could also receive $650 or the difference in cost between providers.
The state attorney general’s office will receive $20 million.