HOUSTON – A consumer warning has been made about door-to-door salesmen visiting Houston neighborhoods with a pitch that could cost you a lot of money.
"This fellow knocked on the door and I answered it," Terry Goforth said. "He said that he was with ADT."
Goforth said the salesman noticed her broken ATD alarm sign. He told her he wanted to replace it and upgrade her alarm system.
"And he said, 'Well, may I come in and look at your panel?'" Goforth said.
But Goforth was too smart for that.
"He just kept talking and talking and talking, and I said 'No, I don't have any problems.' You know, if it's not broken, don't fix it," she said.
About 10 days later, there was another knock at the door of her southeast Houston home. When she answered, another man gave her the same spiel. This time, Goforth said she called ADT, who confirmed to her and KPRC 2 News that it was not an ADT employee or contractor trying to talk his way inside her home.
"Unfortunately, there are a few unscrupulous competitors in our industry that are doing this in an unethical fashion," said ADT's Davis Bleisch.
Goforth described the salesmen as "nice, clean-cut, young men," who spoke well.
Bleisch said it's because many have been trained and versed on exactly what to say. ADT obtained an insider video of another alarm company's training presentation. They shared with KPRC 2.
"So you're walking up to a house with a sign; this is what you do," said the unidentified man in the video, supposedly talking to a room full of trainees. He continued his mock sales pitch.
"Your little ADT sign there -- is that yours or a previous homeowners?" the man asked a woman who is pretending to be a homeowner.
"It's ours," she answered audibly without coming into view.
"Oh, OK," replied the man. Then, addressing his students, he said, "See, I'm trying to find out if it's hers or if somebody left it there."
He continues as if talking to the customer.
"We're just taking down the old panels and popping up a new one for you," he said. "Nothing that you have to pay for. In fact, we're doing it because police, fire and medical departments nationwide want you to have the two-way voice on the keypad."
The Houston Better Business Bureau has received about 150 complaints about door-to-door alarm sales people and tactics just this year. The BBB's Susan Schade said consumers that homeowners do let them in and often end up unknowingly signing new alarm contracts with dishonest companies.
"They might find themselves trying to get out of that and have a very hefty cancellation fee in order to do that," Schade explained. "And these contracts are for 24-60 months, so they need to be very careful."
ADT presented the training video as evidence in court when it sued the alarm company that provided the training, but Bleisch said when one company disappears, another one pops up.
"These are door-knocking groups. They tend to go into a neighborhood, knock on all the doors quickly, get into a van and move on to the next neighborhood, so it's very difficult for licensing authorities to track them down," he said.
ADT actually wants video evidence of other companies training its employees to use deceptive tactics. The company is offering a reward to anyone who submits a video that shows proof of such training.
Click here for details on how to submit the video.
ADT offers the following advice to consumers to prevent being victimized security scammers:
- Ask for photo identification and/or a business card of who is at your door
- Don't be pressured into agreeing to new equipment or signing a contract
- Request literature be left behind so you can study it before taking action
- Call your current security company to confirm what a sales rep or telemarketer tells you
The Houston BBB said before you choose a company, you should verify that they are licensed. Alarm installation and monitoring companies are required to be licensed by the Department of Public Safety's Private Security Bureau. Call 512-424-7710 to check a company's licensing status. Consumers should also verify that a company has a satisfactory report with the BBB.
Sales teams are frequently sent to canvass neighborhoods in search of new customers. If you happen to be solicited at your home, be wary of sales representatives wearing shirts displaying the logos of actual manufacturers. Manufacturers do not solicit consumers directly, nor do they permit retailers to bear their logos.
If you already have a home security system and the sales representative tells you that your service is about to expire, don't take their word for it. Contact your alarm company and verify the expiration date of your contract.
In recent years, more and more households have switched from traditional phone lines to cellphone and Internet-based lines. Making a switch midway through your contract may affect your alarm service. Ask the sales representative what your options are in the event you decide to discontinue the use of a traditional phone line.
It's also important to know that most companies will require you to sign a 24-60 month contract for monitoring. This is especially true if they installed an alarm system for you. Consumers who cancel before their contract expires are often subject to hefty cancellation fees.
Before you sign up, know how long your contract is for and what the cancellation policies are. In discussions with your sales representative, also ask what would happen if the company were to be bought out. Don't rely on oral promises. Get everything in writing.
It is common practice within the industry to use evergreen contracts. If proper notice has not been given, an evergreen contract automatically renews itself upon expiration. Companies often require consumers to give notice of their intent to discontinue service at least 30 days in advance. It is the consumer's responsibility to know when the contract expires and to give notice by the cut-off date stipulated in the contract. If you end up signing an evergreen contract, you can place a label in a visible area near the alarm to remind you when the contract expires and when the cancellation must be made.