Tuesday, August 26, 2008

CPI’s 3 year automatic renewal clause creates shock and outrage

Imagine calling CPI your local alarm company to cancel service because you are moving out of state. You have been with the company for three years. You believe you are at the end of your agreement. The customer service agent tells you that your agreement automatically renewed for the initial term and it was stated in your original agreement. You are outraged and demand to speak to a supervisor. The only thing you want is t be treated fairly. This is at best deceptive and dirty tactics played by a company desperate to retain customers at any and all costs. You can not transfer your service because they do not provide service outside of North Carolina. The supervisor tells that he needs to send a technician out to the home to check the condition of the system and to have you sign some cancellation form. You agree to let the technician come out. When he arrives he takes the master control board that runs the system and the yard sign. He states that CPI maintains ownership of the board and yard signs and decals and that this fact was also stated in your agreement. They want to guarantee that equipment that you believed you owned can not be used or monitored by any other company. Now you are fuming and are determined not to be taken for a ride. Why should you pay for service you are not receiving? Why should you pay for a whole three years of service you can not receive because they don’t offer it in the state you will be living. You decide that you are not going to pay. You proceed with the sale of your home only to discover that during the lawyer’s title search that there is a mechanics lien placed by CPI for the full three years. This guarantees that they will receive their money. A great experience with the quote un quote number 1 company in the Carolina’s.
You may wonder why the security sales representative never told you about this, because he seemed like such a nice guy. The fact is he probably is, but he is a captive agent that signed a non-compete that prohibits him from working in the industry for one year if he gets fires or resigns. So with the decision to feed his family or not to feed his family he doesn’t disclose. CPI was once one of the most respected security companies in the market place. These new agreements erode the good will they had spent years building. Good service, well trained reps that are taken care of will ensure that the company could retain and attract clients. As long as there current plan of business operation continues, let the purchaser beware.

1 comment:

nikkorray said...

I am in the same situation with Alarm One. We decided to renew our alarm services with a new company but when I tried to cancel my service with Alarm One, they said they received our written cancellation notice a few weeks late. So I'm out $600 paying for their service for the next year plus what I'm paying for with the new alarm company. I'm currently trying to figure out how to get out of that contract.

If anyone is reading this, before you sign a contract ask specifically what their cancellation policy is.