Vivint Doles Out $1.4M for Violating Alarm Company Act

Vivint agreed to pay a total of $1.4 million to settle a case involving instances of elderly and/or incapacitated consumers signing contracts.

BAKERSFIELD, Calif. — Vivint has agreed to pay a total of $1.4 million to settle a case in which the smart home giant was accused of violating California’s Alarm Company Act, which outlines how an alarm company must conduct business.

According to Bakersfield Now, an individual complained that her elderly father had been taken advantage of by a Vivint salesperson who signed him to a multi-year contract.

The District Attorney was able to find additional instances of elderly and/or incapacitated consumers signing contracts, with over 300 total complaints statewide.

DA’s also found additional instances of elderly or incapacitated consumers signing contracts where some consumers ended up in contracts with two companies after Vivint salespeople failed to pay off existing contracts, despite promising to do so.

Vivint agreed to pay a total of $1.4 million to settle the case, comprising $700,000 in civil penalties and costs and $700,000 in restitution to consumers based on specified criteria, according to Bakersfield Now. Vivint said it would modify its business practices and redress consumer complaints brought to its attention.

This isn’t the first time Vivint has ended up in hot water for deceptive sales practices. The company agreed to pay ADT $10 million last year over a lawsuit that alleged the Utah-based company used deceptive sales practices to mislead ADT customers into signing long-term contracts.

In 2017, the company paid $100,000 to the State of Wyoming for violating the Consumer Protection Act. That same year, a woman claimed Vivint charged her for five years worth of cancelled alarm service before she was finally refunded.

Door-to-door sales can be a risky business. If you institute this type of sales method, always make sure to adhere to best practices and be clear when communicating. Otherwise, you can be hit with a hefty fine.

SSI has reached out to Vivint for comment.

If you enjoyed this article and want to receive more valuable industry content like this, click here to sign up for our FREE digital newsletters!

Security Is Our Business, Too

For professionals who recommend, buy and install all types of electronic security equipment, a free subscription to Commercial Integrator + Security Sales & Integration is like having a consultant on call. You’ll find an ideal balance of technology and business coverage, with installation tips and techniques for products and updates on how to add to your bottom line.

A FREE subscription to the top resource for security and integration industry will prove to be invaluable.

Subscribe Today!

20 Responses to “Vivint Doles Out $1.4M for Violating Alarm Company Act”

  1. Cris Morales says:

    My mom was too scammed by Vivint. Who can I get in contact with to my a legal claim. Thank you, Cris Morales

  2. Norbert Hoch says:

    I have a customer in los lunas nm that I happened to as well, she also has ADT and Vivint came in and said that they would pay off ADT and now she has to contracts how can she get involved in the lawsuit and get reimbursed for what they did.

  3. Judy Perdue says:

    Please tell me where to get in touch. Vivint calls us many times every day. We moved, discontinued service almost a year ago. We were told to leave the devices there. Now we are being harassed for being late paying and they say we have to pay for another 2 years.

  4. Alicia Kneifl says:

    We started the system with Vivint in the beginning of March and on April 22nd our home was broken into and burglarized with the Vivint system quote on quote alarmed and working we’ve had over 40 phone calls with trying to reboot the same thing over and over they would not send anybody out to check our system replace the camera nor the panel. We have excessive damage to our home because of the installation that was done. Our Vivint system was actually hacked. Can somebody recommend who we can contact for representation as at this point we have no option. There are more details to this situation that I would like to explain to somebody that can represent us please help.

  5. Inez C Stephens says:

    We was misled in getting a alarm system through Vivint ,we have reach out to them on several occasion to come to some agreement and was talking to several customer service and sales supervisor unfortunatel we got cut off , and after several attempts no one got back in touch ,we ask for a copy of contract after a month have not received that either . Please can someone help us with this nightmare we just want out of this tricky business practice.

  6. Michael Allison says:

    We finished our initial contract and requested the that the service be discontinued as much of the system does not work properly anyway. When we called in they said the e had we had signed another 42 month agreement. When we said that was a mistake they produced a signed contract with an obviously forged signature. This is a full on criminal act. Not sure where to go or who to contact any help would be appreciated!

  7. Gerzel D Hankerson says:

    I initially got giving for my daughter who in military. They added my daughter as a co signer with out consent. I got it as gift to her. They added her and told me she cosigned. They LIED! SHE GOT DEPLOYED. NOW THEIR SAYING IF IT OVER 6MONTHS. THEY WON’T REVIEW. WHEN I GOT THE SYSTEM. I WAS TOLD IF SHE GETS DEPLOYED THEY WILL vacate the contract. NOW IT’S SOMETHING ELSE.

  8. Jason Borelli says:

    I use to work for them for a year an a half an I am a witness to sales reps selling equipment to customers an then not installing what they were sold I was a tech leaded me to leave the company I saw slot of shady stuff I’m here if someone needs a witness

  9. I worked for them for a year an a half an they were scamming people in Florida as well, there sales reps were taking advantage of elderly people an selling things on contracts that were never really installed I had to say I installed certain things that were never installed or else I would get written up

  10. Maggie says:

    Yea I cancelled after a year cuz my equipment isn’t set up right and they wanted me to pay to move it around again so I cancelled now they want to sue me please vivint you are in enough hot water leave me alone

  11. I just had a visit from a guy in a t-shirt, with a sign saying Vivent, and a handful of pictures and a handbook. He said he was there to upgrade the monitor panel, flashed a quick picture of several different panels and said, it’s not that one any longer, now it’s this one, holding up a flat panel screen. I told him to return later as I was leaving for an appointment. There was no sign of a vehicle or installation equipment.
    I thought, after reading what Google has to say about fraud on elderly and disabled people, that I would contact you about the validity of what he’s saying. Turns out I would have locked myself into a five year contract for what is essentially no service. I am forwarding this to the San Antonio police.
    Elaine Howell

  12. Latisha Marshall says:

    I went through the same thing and it was horrible I lost everything I ownd in that house they did nothing to help then not shortly after people were just living in my home I was to afraid to stay and my first house was tax brought I lost my dream home and everything in it I paid a lot for a monitor service that did nothing but charged me monthly I need a lawyer pronto

  13. Karen Robey says:

    Vivint mislead me into a contract! they didnt tell me upfront that they were financing the equipment through Citizens bank and that I would be getting 2 separate bills. They also caused damage to my door facing during the installation process and to top it all off, half of the time the equipment does not work. The cameras will record little motion such as the wind blowing but it didn’t record numerous times when someone was at my door or in the yard. Soetimes its days before I will see any recordings at all on one or 2 of the cameras. Terrible service!!!!! I have neighbors that pay less than I do. I’m paying almost 80.00 a month for a service that is crap!

  14. Skylar Ryan says:

    So far, we have had Vivint for one year. The salesperson did not inform us that he was going to pull our credit to finance the equipment. The salesperson promised us two google home minis and two life alerts as we have two elderly living with us. I have called on multiple occasions, trying to get the contract that was supposed to get sent to me, and I have never seen it. I have told many of the customer service agents to contact the salesperson to have him verify what he told us he would do for us signing up that night. We were also supposed to have the first two months of service and financing paid by Vivint. He COMPLETELY disappeared. Not one person was able to contact him. It was like he turned his phone off. I wanted them to stop making the payments for both the equipment and for the service. They refused to do so with the service, and I don’t want my credit to get smacked with late payments from the finance company for the equipment.

  15. steve smith says:

    they told me that it was a promo that was for 3 days not only did he sign me up for 60 months but he financing me for $1000 and didn’t say anything about how to cancel whenever I asked how to cancel he told me no worries he gonna take care of it. I even called him on second day to cancel he said he paid for a month so keep it til then and now they’re billing me. that was back in September.

  16. bridget says:

    This company is the biggest scam since Power Balance bracelets.

    I’ll make it quick. Their cameras didn’t capture a man breaking down my back door. Their cameras were great at capturing squirrels, leaves and even me every day. But a criminal? Nope.

    When I called to see what the hell happened the customer service person was so incredibly rude. I was told “If this actually happened…” “this” being the break in. Nothing like “I’m sorry this happened let me help.” And when I wanted to cancel the system I learned I’m stuck in an obscene contract so I stayed.

    Cut to a few months later and I’m moving, the new owner wants the system but nope. I would have to pay almost $2k to make that happen and I’m still stuck. So I have to take this sh***y system with me.

  17. Tamie hahn says:

    Never told about system part contract. No break down of cost of items. Was told by sales rep/installation guy $50 per month. I have credit card for first payment nope they took &482 dollars out of my account without permission only &50’okd. I’ve called company for refund, told in process never hit my account, called again promised into
    My account right away. Nothing I called corporate office I was told refund was mailed expect in a little more than two weeks. I noticed them on January 30th then I get a check on February 19th. I don’t believe it I think I’m being lied to. I’m filing police report and report to my bank JFC this is illegal as hell stealing from seniors!!!

  18. Donald Lusk says:

    Truly a deceptive and far from honorable company. Market themselves as an LDS company. Contract is misleading and what the reps say vs what is in the contract totally different. Their idea of customer service is to troll complain logs and try to handle complaints by replies that all the customer has to do is call them for a resolution. When you do their attitude quite different. Sales people are trained to try and scare the elderly with stories of neighborhood break ins and car break ins. In my case the equipment all failed to work after about two years………….This company has been sued in California and other states for their deceptive practices. I suspect one of the reasons their equipment is so expensive is because of all the payouts they have to pay when class action suits brought against them. Dishonest company. Beware.

  19. Soky Vondett says:

    I have also been a victim of VIVINT alarm system. I was at the time I sign the contract 74 yrs of age. I consider myself a smart woman with a law career and working full time. I was told by the sales woman that if I signed a contract for two years they will pay the balance left on my current alarm system. I told her it be 900.00 or at most 1000.00 dollars. She said no problem. First surprise is that if Vivint pays anything it would be at most $600.00 I am now 75 and retired, paying for two alarm systems and a bank loan for the equipment. The reason I change alarm system was because the smart functions appealed to me. I have made several attempts to call the sales woman. She does not respond, her phone messenger is always full. Phone out of service.. I filled the payout form and submitted it. No results. Called and spoke with several people… no result. I am able to sue them if that is what I need to do to teach a dishonest and corrupt company to respect and be honorable even if the word has no significance to them. How can they sleep at night ; from the top CEO to the newly hired salesperson.

  20. Soky Vondett says:

    I just posted a complain against Vivint alarm system scams. If there is an Attorney willing to take our cases for those of us that have not taken any legal action as of yet, please post your name and information. Those willing to start another legal action suit against them please log in and Mention “MEMPHIS LAW SUIT”. I know plenty of Attorneys and can ask if they can take the case in consignment. Time to put a stop to underhanded companies like them. The question is how to contact each one of us. Not sure if this site is willing to help out on this issue

Leave a Reply

Your email address will not be published. Required fields are marked *

Get Our Newsletters