Staff reports
APX Alarm Security Solutions – whose employees’ aggressive and misleading door-to-door sales tactics have gotten the company in trouble with six states and kicked out of at least two cities – is back in Albany.
The Provo, Utah-based company, which recruits students from universities to sell and install residential security systems, particularly victimizes elderly people with its high-pressure sales techniques, according to the Oregon attorney general.
APX is a private firm providing home security services including monitored burglar and fire services throughout the United States and Canada. An APX spokesman said that the company unfairly has a sordid reputation for three reasons: many consumers resent door-to-door sales; jealous competitors unfairly target APX; and due to the actions of some rogue employees, who are appropriately disciplined or fired when complaints are substantiated,
“We expect our sales reps to be absolutely ethical, professional and courteous, and if they are not, we would absolutely address those individuals,” said Stuart Dean, APX’s corporate communications director. “I know as a company we … have a very good reputation within our industry”, though some “may complain because of the competitive nature.”
State agencies across the United States and in Canada consistently receive complaints that APX engages in aggressive and deceitful practices to push their product. Recently, South Bend, Ind., kicked APX out of town after drawing more than a dozen complaints from citizens.
Because of government action against the company, APX has a “C-minus” rating on a scale of “A” to “F” from the Better Business Bureau (BBB), which has fielded more than 1,600 complaints about the company over the last three years. APX’s BBB rating has been as high as “B” and as low as “F” in recent years. National dealer and monitoring service ADT Security Services and local dealer and monitoring service Central Monitoring have “A” ratings. Regional dealer Safe Tech Security of Columbus, Ga., has an “A-minus” rating.
Dean says that the number of complaints against APX is small considering that APX employees knock on millions of doors each year. He said that APX’s competitors in Georgia are bringing ill-will to the company. But BBB officials said that only complaints from actual APX customers have given the company an “F” rating.
Two summers ago, APX’s young sales team came to Albany, drawing numerous consumer complaints, yet the city refused to revoke its license. Communities like Albany – with citizens living on edge due to high incidence of crime – are prime money-making locations for APX, which one of the United States’ largest security system firms.
APX has had these recent run-ins with the law and the BBB.
n In April 2010, the company reached an agreement with the Oregon attorney general to pay $60,000 to settle more than a dozen complaints that the company misled and pressured elderly consumers. “One 96-year-old woman complained a salesman grabbed a checkbook from her hand and started to fill in the dollar amount,” a state official said.
n This year, Arkansas state officials say they continue to be swarmed with complaints against APX alarm company solicitors after fining APX $40,850 following a series of consumer complaints in 2009 and $25,000 in 2008.
n In 2009, the state of Minnesota fined APX $25,000 for violating state licensing requirements and ordered the company not to perform new installations until the “three-day right-to-cancel” time frame passed.
n In 2009, the Maryland Attorney General’s Office mediated complaints from customers and it took action against APX for selling security systems without proper licensing.
n In 2009, in response to consumer complaints regarding “dishonest sales practices and contract issues,” the BBB of Buffalo, N.Y. issued a warning to consumers about APX. Other local business bureaus and government agencies have issued similar warnings.
n In 2008, Louisiana ordered APX to cease and desist any and all security-related business in the state. The state said that salespeople “engaged in false, misleading, or deceptive acts or practices in that the company’s salespersons knowingly provided false information to prospective customers in order to secure the sale of security systems.”
n In 2008, California cited APX for employing people without proper registration.
n In 2009, the city of Appleton, Wisc., ran APX salesmen out of town. A city official said the company operated before it received its license and that salesmen told residents there had been a sexual assault in the neighborhood, which was untrue.
Among the more common complaints, including those made in Albany in 2008, is that the company’s salespeople falsely claim to represent potential customers’ current alarm companies or Honeywell Security. APX sells Honeywell equipment, as does many other alarm companies, but APX and Honeywell aren’t affiliated. Also, APX representatives have falsely claimed that APX will pay of their customers’ monitoring cost; that alarm systems would be free if the consumer displayed an APX sign in their yard; that there has been a rash of recent crime in the neighborhood, even if there hasn’t; and that APX has ties or partnerships with local fire or police departments.
Many consumers who contract with APX also say that salespeople falsely claim that their existing alarm company would allow them out of their existing monitoring agreement if they signed up with APX. Additionally, many APX customers claim that while salespeople say that they can cancel their five-year monitoring agreement with APX if they sell their home, but that they found out otherwise later. And some APX salespeople refuse to leave customers’ homes for hours, until a contract was signed.
Complaints about APX’s deceptiveness aren’t limited to sales practices. The BBB says that other complaints against the company involved false advertising; failing to correct billing errors; improper collection practices; unauthorized bank debits and credit card charges; failure to honor a contract or agreement; failing to honor guarantees; and illegally changing contracts.
Noting that BBB is a for-profit operation like APX, Dean says he does not know whether APX not being a BBB-certified business is a BBB decision or APX decision. ADT, Central Monitoring and Safe Tech Security also are not BBB-certified businesses.
“I think we have a very good working relationship with BBB … They still follow us as if we were a paying member,” he said. “I don’t have specifics as to why we’re not (a member).”
Dean said that while the salesperson is at a prospective customer’s home, the customer talks to another APX employee on the telephone who conducts a 20-question pre-installation survey.
APX began in 1997, incorporated in 1999, and by 2005 had become one of the United States’ largest security dealers. For two consecutive years, the company recently received J.D. Power and Associates certification for call center operations customer satisfaction.
CONSUMER TIPS – ALARM SYSTEMS
(Source: Better Business Bureau)
1. Some companies will offer a “free” alarm system. While the equipment and installation may be free (make sure this is in writing), there is a monthly monitoring fee. When you compare costs, make sure you compare all the costs
2. Check out the company that will be monitoring your system. Ask if it is the same company you are signing a contract with. If not, make sure you obtain the name, address and phone number of this company.
3. Consider advantages and disadvantages of each system and decide which will be best for your particular situation. Does the company call you first before notifying the police? b. Does the company call the police first? How soon after the alarm sounds will you be notified? What happens if the alarm company is unable to reach you when the alarm is sounding? Is the alarm reset? Are the police called? Are alternate numbers called?
4. Ask for procedures in writing so you are aware of the steps and can anticipate how you can best handle the situation.
5. Deal only with reputable firms and check out the company at the Better Business Bureau’s website, www.bbb.org.
6. Don’t be pressured into buying something you don’t want or need. A reputable company will let you check out the offer and compare bids from several installers.
7. Make sure it includes all promises made by the salesperson. If the promises are not in the contract do not sign the contract.
8. Study the contract carefully. Confirm information such as: installation price, monthly price, length of contract, monthly price, that any free or discount offers have been added, cancellation time frame to cancel the contract. The Federal Trade Commission requires that at least three days be provided (www.ftc.gov, three day cooling off rule).
9. If you are planning on moving ask what happens with your contract, and get that information in writing from the sales person.
10. After your purchase, make sure you check the system routinely to be sure it is in working order.
11. If you are having problems with your alarm, make sure you document dates, times, who you talked with, who came out and what was fixed.
Also this year, the BBB says a city in Wisconsin revoked the commercial solicitation license for APX after getting a number of complaints about the company’s marketing practices.
