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Avoid summertime burglar-alarm scams
June 26, 2009 11:26 AM

Alarm Company ScamsOne consumer rip-off that shows no sign of abating is the annual invasion of door-to-door salespeople who use dubious and intrusive tactics to sell burglar-alarm systems to unwary homeowners, a topic we covered in "Scam Alert: Don't Get Ripped Off by an Alarm Company."

Jane Driggs, president of the Better Business Bureau of Utah, stops short of advising you not to buy an alarm system from door-to-door salespeople, but says, "You just have to make sure that you verify everything the company says and do your comparison shopping as if somebody hadn't come to the door." Read the BBB's "Don’t Fall for the Deceptive Pitch of a Door-to-Door Alarm Salesman."

Law-enforcement and consumer-protection officials warn you to be wary of an alarm salesperson who:

• Attempts to alarm you by citing rashes of burglaries in their neighborhoods.

• Claims to represent or wear clothing with logos from major alarm manufacturers like GE and Honeywell. These firms don't sell directly to consumers and don't allow their logos to be used by door-to-door salespeople.

• Tries to gain entrance into your home. "I actually had a salesperson reach inside the door to show me where his system would go and ask if he could come in," says Driggs. "I have a big dog, so I wasn't worried about it, but I could see a lot of people might have let him gain admittance that way."

• Offers a free system. Experts say "free" systems usually come with higher monthly service fees. Also be sure that the contract clearly indicates what the monthly service fee will be. "If they say your charges are going to be $44 a month for a one-year term, verify that that's what the contract says—don't sign it if it isn't clearly stated," says Driggs.

"Alarm companies generally don't make money on the equipment, but on he monthly services. You should focus on the quality of the service and the length of the contract—many jurisdictions limit the length and number of automatic renewals," says Ron Walters, the Security Industry Alarm Coalition's director of field operations. Make sure the contract stipulates the length of the agreement and any associated early-termination fees.

• Says the company is ready to install your system right away. Experts say legitimate alarm companies don't mind taking the time to talk to consumers to get a comprehensive view of their security needs.

• Claims your current alarm company is defunct. A scam recently spotted by our colleagues at The Consumerist involves Orem, Utah-based Pinnacle Security. The company's reps have been implying to customers of CastleRock Security in Wichita, Kansas, that CastleRock has gone out of business, a claim CastleRock disputes. Another variation on this theme is a salesperson's claim that your current equipment needs updating. Read more about this story on the KWCH Web site.

Industry experts stress that you should deal only with well-established companies. Find out which local or state agency has jurisdiction over alarm companies and check the records of any company you're considering using. Also see whether your homeowner's-insurance company offers a discount for using certain alarm companies.—Gian Trotta | | Twitter | Forums | Facebook

Essential information: These low-cost products and commonsense procedures can boost your home security. And read about Rex, a virtual watchdog.

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Comments:
14

I have worked for a summer sales company (Pinnacle Security, Orem UT). I have benn ripped off over and over again. I have since stopped working for them. I would advize anybody who is considering working for them to go some where else. I recruited people to go work in Tennessee this past summer and then with out warning I was told I was going to Canada and that me and all of me team had to be full time students in order ro go. Well since neither me nor half of the guys I recruited were students we couldnt go. Now pinnacle has sent my name to a collection agency saying I have to pay back the money they paid me for recruiting people becaue I couldnt work where they wanted me to work. They even told me to go to Canada anyway and told me how to get there illegally and that they would help in this illegal endevor. This is very shady business. Even the contract I signed says I dont have to repay the money but they sent me to collections and now I have 30 dasy to respond or they take legal action.

I can only comment on the security industry in Australia, but i would hope that like us, you have industry bodies and licensing bodies that are designed to protect not only the operators, but the consumer.

I believe the industry requires continual monitoring to ensure that services provided are in accordance of gazzetted guidelines.

A condition of a Master Security License being issued in Australia is that the company is affilliated with one of the mainstream licensing bodies.

Although the door knocking scammers are a problem for the security industry in the US, the scams in Australia come from within the industry itself. Australian alarm monitoring subscribers are ripped off daily as part of the 13xx Rebate scam !

Great Post.......Thanks for sharing the information.....

I have to pay back the money they paid me for recruiting people becaue I couldnt work where they wanted me to work. They even told me to go to Canada anyway and told me how to get there illegally and that they would help in this illegal endevor.

Security Alarm

"• Claims to represent or wear clothing with logos from major alarm manufacturers like GE and Honeywell. These firms don't sell directly to consumers and don't allow their logos to be used by door-to-door salespeople."
NOT TRUE at all. honeywell and GE both back large summer door to door companies and allow them to put there logo on there uniforms. This article is so one sided, must of been written by ADT or BRINKS(broadview) You want to talk about a RIP-OFF, look at the biggest companies that have been around forever. If your a new customer, ADT will charge up to 2000 dollars just for the equipment and a high monthly rate. ADT has put out a massive campaign(without there name on it) to bash other companies because they are losing all there customers to much better companies that give the customer a lot more and a lot better customer service.

There are times when it is more convenient for homeowners to be visited by salespersons especially when they are too busy to go out and do their own shopping. The problem arises when the salesperson who came knocking at doorstep is a fraud. It is best to be vigilant against dishonest people so as not to be victimized.

For those people who are often not in their residence because of their busy work schedule, it is indeed helpful to have even just a simple monitoring device for home security. This is such helpful information.

There is some people walking the streets of Las Cruces, NM this week trying to get rid of some pinnacle security systems. I was approached at my door last night by a gentleman that made himself look la get and he told me everything that was going to be free and was going to run about $44.00 a month, if I did it with the phone line it was a extra $5.00. I got his name from his tag, John Rich was on his tag but he wrote his name down as Mike for me to call him back today to say if I wanted the system or not. I want to thank you for all the info on this site that changed my mind on getting the system. If this will help stop the guys from walking the streets I have his telephone# and a ID# also to reach at.

After my house was burglarized for the second time in 4 years, I decided that I needed a security system. I had received a few hang tags on my door from salespeople who must get access to police reports. One day I let a woman inside to discuss the system. While pitching her whole system, we discussed how a lot of these burglaries are done by kids who fall into the wrong crowd. She said that her son had been in trouble a while ago, but was in school now and doing well. Imagine my surprise when she let his name slip and I realized that he was one of the kids that broke into my house the first time around! They had been caught and prosecuted. What a great scam! The kid robs the house so the mom can sell the security system. Needless to say I didn't buy a system from her.

long time customer. would like information about home security systems ratings but cannot find any. have you any information that you can share?
sincerely,
pat murray

I just signed up for a system from a door to door salesperson representing FTR Security. He had on a shirt w/GE logo. The alarm equipment is free. He said that his budget is $2000 for the hardware but I checked the web and it is only about $500. The monitoring company is Monitronics International based in Texas. I checked them out with the BBB and got a B+ and A- ratings. FTR had 8 complaints in 36mos and all were resolved. I am kind of wary but the BBB gave me a little confidence in the two companies. I have a 36mos contract. To early for "issues" yet.

A good idea is to always follow up with the Alarm Company's contracted central station. Never take a company at their word, and make sure to check out all claims BEFORE you sign that contract.

We canceled our pre-paid fire alarm monitoring service TWO years ago and just recently, we started getting bills and harrassing collection calls from a completely different company in Pennsylvania. Something called Enterprise Security. We have never heard of them and certainly don't feel that we owe them money. Even a certified letter from us hasn't stopped this company. What is going on?