Wednesday, March 25, 2009

APX Alarm Security Systems Runs afoul of the Law

The aggressive and unsavory tactics of Utah based APX Alarm Security Systems have landed them in hot water with the Maryland Attorney General’s office. Over 1200 people who purchased security systems from APX last year are entitled to a full refund because their representatives were unlicensed. The Maryland attorney general’s office began investigating when it received numerous complaints regarding the ploys used by APX to high pressure sell homeowners into purchasing security systems from them. The Maryland Attorney General’s office received complaints that APX representatives forcefully pushed their way into homes uninvited and forced their canned presentations on customers. Letters were sent to 1267 customers of APX informing them of their right to receive a refund. The customers must return a written form in order to receive a refund.
According to a representative of APX, representatives from Virginia crossed into Reston County, Maryland and solicited business. It is their claim that they did not know that there were licensing requirements for alarm salespeople in the state of Maryland. This is not the first time APX has been fined for employing these same tactics. APX has been fined by the North Carolina Alarm Board as well. According to people familiar with Maryland law the contracts signed by customers of APX with unlicensed representatives may be voidable.
According to a settlement reached between APX and the Maryland Attorney General’s office, APX will not process contracts from representatives that are not licensed in the zip code of the customer listed on the contract. This sounds feasible but let the buyer beware; it is possible that they could leave that part blank and have the contract signed by someone who is licensed.
APX markets for quantity not quality. Customers seeking security services should use respectable companies that are a staple of their communities. Check with the Better Business Bureau, The Chamber of Commerce and check the company’s online reputation. Ask for ID, and don’t be forced to sign anything. Get customer testimonials and research the representatives. Because there is a lag between when a person applies for an alarm license and when it is approved a homeowner could still be at risk of having a criminal in their home. Companies like APX that are driven by number of contracts sold, may employ the use of this loophole to reach quotas at the expense of the general public’s safety. I am not saying that this is the case, but the buyer should be cognizant that is is a possibility, and that they or another company may use this ploy to procure business.
According to the Attorney General’s office of the claim notices sent out as that time only 15% wanted to keep their security systems. This speaks volumes!

1 comment:

Jeonard said...
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