Attorney General Bruce R. Beemer has announced the filing of a legal settlement with a Utah-based company that allegedly violated the Commonwealth’s Unfair Trade Practices and Consumer Protection Law as it sold home security systems in Pennsylvania.
The settlement reached with Vivint, Inc., more commonly known as APX Alarm Security Solutions, Inc., is the result of an investigation conducted by the Attorney General’s Bureau of Consumer Protection.
Vivint markets, sells, installs, and monitors home automation and security systems. According to the settlement, agents from Vivint made the following misrepresentations in door-to-door solicitations:
- Vivint agents said they were affiliated with the consumers’ existing security companies.
- Agents further said that consumers’ existing security systems and services needed to be updated or replaced.
- Vivint agents said they would cancel the consumers’ existing security company contracts with no additional funds owed to the existing security company by the consumers.
- Vivint agents said consumers’ existing security providers had gone out of business and were purchased or taken over by Vivint.
Under the terms of the settlement, Vivint is required to pay restitution to certain consumers who have previously filed complaints with the Bureau of Consumer Protection. Those consumers reside throughout the Commonwealth.
The company must also pay restitution to additional consumers who submit valid complaints to the Bureau of Consumer Protection by March 10. Consumers who wish to file a complaint regarding Vivint are encouraged to call 1-800-441-2555 or go to http://www.attorneygeneral.gov to file a complaint online.
The settlement also alleges Vivint failed to honor its cancellation policy. The company is further accused of attempting to collect fees for goods and services provided after consumers properly canceled their contracts. These consumers continuously received bills and repeated telephone calls and threats to turn accounts over to collections.
Also, in at least one instance, a Vivint agent allegedly offered another contract orally, after the expiration of the initial contract term, but failed to provide a written contract to the consumer and failed to obtain the consumer’s signature.
Vivint, under the terms of the settlement, has agreed to:
- Comply with all sections of the Unfair Trade Practices and Consumer Protection Law.
- Comply with all sections of the Home Improvement Consumer Protection Act, as applicable.
- Obtain a signed copy of any contract and provide the consumer with a copy of the contract.
- Pay any previously agreed-to fees that were the result of a consumer switching service from a third-party company.
- When marketing door-to-door, agents will continue to wear clear identification that states their first and last name, as well as the corporation they represent. They will also be required to state this information to the consumer.
- Honor all stated cancellation policies and discontinue any efforts to collect payment from consumers who have previously canceled their policies.
The settlement was filed in the Philadelphia County Court of Common Pleas by Senior Deputy Attorney General Thomas J. Blessington of the Attorney General’s Bureau of Consumer Protection.