Vivint Agrees to Pay Deceptive Sales Settlement to 50 Missouri Customers

Missouri AG office says Vivint sales reps “misrepresented the company they worked for and exaggerated the length of the rescission (cancellation) period as well as the local crime rates.”

SPRINGFIELD, Mo. – Vivint will pay $15,000 in civil penalties plus $50,000 in restitution to 50 Missouri customers who were victims of the company’s deceptive practices, Missouri Attorney General Chris Koster announced.

A Springfield woman, Edra Banks, complained about the company to the News-Leader in July 2014. Banks, 88, said a Vivint sales representative claimed to be updating her system for her previous provider, Atlas Security of Springfield, according to the newspaper. She didn’t realize until later that he had installed inferior equipment and signed her up for a different security service at a higher rate, according to the article

Banks was able to secure a refund and have her previous security system quickly restored. But dozens of other complaints against the company prompted the Attorney General’s Office to take action.

In a press release, the office said consumers complained that Vivint’s door-to-door salespeople “misrepresented the company they worked for and exaggerated the length of the rescission (cancellation) period as well as the local crime rates.”

Some consumers also complained that they were misled about what would happen if they canceled their previous contracts. Vivint also automatically renewed some contracts without customer consent.

In addition to canceling contracts for dozens of consumers, Vivint agreed as part of the settlement to reform its business practices. Required changes include:

• “(A)greeing to take swift disciplinary action against any sales person who makes untruthful or inaccurate statements in their sales presentations”

• “(G)iving costumers ages 70 years and older a 30-day right of rescission after signing a contract”

• Modifying written contracts so that customers’ service is extended on a month-to-month basis once the initial contract term ends.

“Companies who want to do business in Missouri have to make it clear to consumers what they’re buying,” Koster said in the release. “This agreement protects Missouri residents on an ongoing basis and returns money to consumers who were misled.”

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