Home security system sales: Naughty Businesses of the Week
Learn a lesson from Mildred Jones.
The Pasadena resident got a visit last month from a person who said he was from the marketing department for a home security system company.
He wanted to put his company's sign in her yard and to install a security system in their house for free to attract sales from her neighbors. All she and her daughter would only be responsible for the monthly payment for the security service.
The salesman also mentioned that there had been several break-ins just a few blocks away.
Ms. Jones and her daughter talked it over and decided to sign up, after the representative said they could cancel the contract within a month. He reviewed the contract with them, and although there was a clause referring to locking in a price for 60 months, he reassured them that that just meant if they kept with the product. The equipment was installed that evening.
Fast forward a few weeks, and Ms. Jones and her daughter learned the truth:
... that in Maryland, you can only cancel a contract signed in the home after three days, not three weeks or a month as they were told.
"He ... answered all the questions but every answer was a lie," Jones said.
In Maryland, door-to-door salesmen have to be licensed, and they are supposed to produce it when you ask, said Raquel Guillory, spokeswoman for the Maryland Attorney General's office.
But you should never sign anything that doesn't match what you've agreed to, she added. Here are more tips for buying a home security system.
"You're going to have to prove they lied to you and it's your word against theirs," she said.
Angie Barnett, president and CEO of the Better Business Bureau of Greater Maryland, offered these tips:
1. Free alarm system usually isn’t free – the equipment/install may be free but there is always a monthly monitoring fee and contract.
2. Review contract for length of time, billing cycle, monthly price, stipulations for what happens with contract if you move, responsibility for false alarms, registering your system with local enforcement, notice (call you first or police first).
3. If any points from sales presentation are critical or not included in contract, have sales rep write them down/add to contract or else verbal is usually not binding.
4. Ask for all company procedures in writing of what they do when alarms sounds, order, and how/when you are notified.
5. Find out your local law enforcement registration policies/charges for false calls.
6. Don’t be pressured into buying something. A reputable company will let you check out their offer and compare to others. If they force you to buy then, then walk away.
7. Make sure the company system you purchase is the same company who will monitor your system.
8. Company/Door-to-door sales reps are to be registered with Maryland State Police. Ask for badge and inquire with company (before you buy) that the sales reps are actually employed by the company.
A recent Consumer Reports blog post about burglar alarm scams says it's a common practice to offer a "free" system in exchange for the monthly service fees. They also warn customers to take the time to comparison shop when considering a security system just the way they would for any product or service.
UPDATED: The Jones family was able to talk their way out of the contract, but you may not be as lucky. Better to understand the terms of any deals before you sign --- and have your sales representative change the contract to reflect the pitch, if necessary (as well as initial any changes).
(photo: ScottD_Arch/Flickr)
Comments
Every spring like clockwork these guys -- neatly dressed in matching polo shirts -- hit our neighborhood. They're always dropping the name of this neighbor or that who has signed up. My husband is always intrigued and I always tell him it's a scam.
Definitely, you're right to have your guard up. The expert that Consumer Reports quotes doesn't go so far as to say that anything sold door-to-door is a scam, but we should subject these offers to the price comparisons and scrutiny just like we would if we were shopping independently. Tell them thanks for the info and you'll get back to them if you're interested. --- lfk.
Posted by: Stephanie | June 30, 2009 11:42 AM
I don't know if this post will past the blogger's approval, because it is quite critical of the article. Rather, one point of the article - the main point.
The salesman agreed to give them up to thirty days to cancel. To this term, the customer agreed. The law (which was never properly referenced for verification purposes) in Maryland is that a contract must have AT LEAST A THREE DAY CANCELLATION PERIOD. Not "only" a three day period. If a salesman (or company) wishes to bind himself to a longer trial period, be it 30, 60, or 117 days there is nothing in Maryland law which would prevent an agreement on that basis from binding both parties according to the agreements terms.
Furthermore, the update says that the customer was able to "talk their way out of the contract." What utter nonsense. What most likely happened, is the customer merely contacted the company, referenced the thirty day cancellation period, and the company honored it. (Oh sure, maybe the company objected, tried to keep them as a customer, etc. But what company wouldn't?) It's impossible to say for certain unless I were to sit as judge and gather all pertinent facts to the case.
It amazes me that the post attempts to paint the company as a predator and the customer as a victim. From the facts related in the post, I can find no wrong doing at all.
""He ... answered all the questions but every answer was a lie," Jones said." What specifically was a lie? I see no lies.
Ignorance of the (contract) law is no excuse.
I think, Alexander, that the issue is that the salesman verbally promised them something that did not match the language of the contract they signed. It's been a long time since this post was published, but I don't believe the 30-day cancellation period was stated in the contract they signed, so it would have been his word against theirs. --- lfk.
Posted by: Alexander | September 12, 2009 3:52 PM