Complain about a product or service

APX Alarm

Tom of Webb City, MO October 11, 2009

A follow up on our complaint of Sept 23, 2009. APX Alam claim the following: 1. A faxed cancellation of contract is not valid because it is faxed, rather than mailed or hand delivered. 2. Oral consent over the telephone after receiving a cancellation legally reverses the cancellation. No later written agreement is needed.

FYI to anyone facing these assertions: 1. Utah Code 70C-5-102(4), the notice of cancellation may take any form (as is also true in my state of MO and, I would guess, all other states as well).

2. In Taran Distributing v. Ami, the US Court of Appeals (237 F2d 488) upheld a lower court ruling that a (undisputed) telephone conversation (in this case with a company president) cannot reverse a written cancellation of a contract. Such a conversation "lacks substantial manifestations of firm oral undertakings between intelligent business men."

This high standard for oral statements to carry weight equal to or greater than written contracts US Court of Appeals in Ziolkowski v. Caterpillar Incorporated (996 F2d 1220) sets out the high standards that would be necessary for any oral statement to have contractual weight. The full terms and obligations must be fully understood (this suggests sufficient levels of contract law understanding exists with both parties) and it must be the clear intention of both parties to establish an oral contract. In that particular case under review, the court ruled any oral statements that were made must be understood only as an "agreement to make and agreement." This, the court asserts, is not a binding contract.

Finally, no court decision I can find has specifically addressed the practice of a company (APX Alarm) pursuing a consumer further after receiving a written cancellation. The FTC code is also silent on this, although the intend of code (establishing a legal right of cancellation within three business days; and, protecting consumer's from point of sale decisions made under the influence of a skilled salesperson) seems to be violated.

I would wish a clarification of this question were addressed in federal court or clear statutory wording: Can a company involved in unsolicited door to door sales, upon receiving a valid, timely written cancellation of a sales contract, directly contact that consumer to pressure/persuade them to change their minds?

Robert of Langlois, OR October 7, 2009

Myself and My wife both lost our Jobs November of 2008 in Sparks, Nevada. I immediatlley called APX alarms to have my system turned off. (I had never missed a payment). I believe we had them for around 2 years at this time. I was than told we had a 5 year contract. I said "your sales people told me if things like this happen, your company is a family oriented place and understands these things." And I never signed anything without them telling me "they will drop contracts for situations like that". I had asked them when they were selling it to me things like "what if death to me or wife? What if we lose house, God Forbid" And that is answer I received.

Well , APX did give me "3 months " free to figure out what I can do. (was not free, tacked on to end of contract). Than another 3 months when I told them I have no reason to keep system, house will be foreclosing, and I will not own a house again for a very long time.

Well, I wrote 3 letters explaining my situation and practically begging them to void my contract. I never heard from them again until yesterday. Collection Agency...1790.00. We have moved to Oregon, lost our house in Sparks, and are now renting. I am working a temporary job. I am at a loss on this And completelly blown away. When we asked the "very nice" sales reps those exact questions, we never thought it would happen to us. And now that it has, we see they bold faced lied to us.

Freddie/Bevery of columbia, TN October 2, 2009

We had our suspicions about this company and my husband grilled them before signing a contract with them. We made them scratch out 60 months and gave us 3 years but after reading all of the horror stories, I called them today to find out when our contract expired. This alarm system only covers the doors to our house and not the windows so how is that protecting us? We asked that question and the reps response was that if a break should occur then the "robbers" would have to leave out of the doors to take our stuff. They got us good. I'm so disappointed that this society has lowered itself to conning the consumer. I came across this company by inquiring about a "free Walmart" card and to submit to process. I didn't submit but before you submit in the lower right hand corner is small print allowing a company, "Security Network" to charge 12.95 to your monthly phone bill....and for what????? I didn't submit but by my putting in my tp# they somehow processed it anyway. I caught the dickens trying to get that off of my telephone bill and when I called the company to ask what service they were providing for me....the owner...a very nasty man...told me that he was protecting my name and address.....WHAT????? I let him have it and told him he better take that off my bill. He talked to me very rough and was very angry but he did it eventually. Then APX called and it was on from that point on. I hope a class action law suit will be filed against these guys because this is fraud and we don't need to be taken by these fast talking, lying young men. Now take into account that while we are seeking a class action law suit, how rich they have become as our expense. How cruel!

ANNA of GAFFNEY, SC September 24, 2009

My husband and I were contacted by Apx Alarm System via telephone the early part of 2008. We agreed to have an alarm system put in our house because we had infant twins and we wanted to feel safe. When the installer came to put the system up, we were told that we were signing a 1 year contract. Now one year later when we wanted to cancel our system we were told we couldn't cancel because we signed for a 3 year contract, which was a total lie. We wanted to have the system removed about 3 months after having it put in because it was total WORTHLESS, their response time to any alarm is way too slow. We were getting our living room painted and our friend took the system down to paint behind it, and well we still have not received a call from Apx concerning that our monitor was not connected. We also had to close our checking account out due to some issues with the bank and you know when Apx finally decided to call us...when they realized they weren't getting paid anymore and haven't mention that our house is not being monitored anymore. Sounds like to me that is a total RIP-OFF!!! I DO NOT RECOMMEND ANYONE PUTTING AN APX ALARM SYSTEM IN THEIR HOME UNLESS THEY JUST WANT TO PISS MONEY AWAY!

Tom of Webb City, MO September 23, 2009

On July 23, 2008 my wife naively signed a contract with a nicely dressed young man who told her they were offering special deals on APX home alarm services. We talked it over, and within the 3 business days specified by law (a weekend was included) she FAXed a cancellation of contract notification to APX on July 28th at 12:30pm CDT. She used a 3rd party (our college) so the FAX is time stamped and a record of the time and length of the call is retained in the college's phone history records.

About four days later "Chris" from APX called, told her he was sorry she had decided to cancel. He asked Linda if she'd allow APX the chance to come back and make things right. She was in the middle of household stuff, unprepared for a phone call from them. And, unfortunately, she was trying to be nice. She finally agreed to allow them to come back, bring some additional stuff, and try again. She barely remembers details of this conversation, but is certain she was never told her telephone consent would unconditionally nullify her rights of cancellation and establish - regardless of her satisfaction with their equipment/service - of an irrevocable five year contract. If anything like that had been said, she certainly would have refused.

Three additional visits from APX and system still could not be made to work for our house. I can explain why, but won't bother with that here. So, we were NEVER able to use the system and contacted APX that we decided to let our cancellation stand. They insist (with no willingness to settle for one cent less) that a full five year contract is in place and demand full payment: more than 2k. We have returned all equipment to APX via (signature required) UPS.

I want to emphasize that we were never presented with or signed any written agreement with APX after her written cancellation was FAXed to them and received. Central to our complaint: A written contract was signed and then legally canceled (in writing with the time period allowed by FTC and MO law). Their own "fine print" in the original contract document states that no oral changes or amendments can be made by any party: "The entire and only agreement between us is written in this agreement. It replaces any earlier oral or written understanding or agreements. IT MAY ONLY BE CHANGED BY A WRITTEN AGREEMENT SIGNED BY BOTH YOU (AND IF MARRIED, YOUR SPOUSE) AND US." [by the way, although named at the top of the original contract document, I was not home and did not sign it]

At no point in the telephone conversation was my wife informed that consenting to an attempt to "make things right" obligated us (even if we remained unsatisfied with the service) to an unbreakable contract. She did understand if she was satisfied with the new setup, she would use and pay for their service. So, we have a written contract between APX and the both of us only signed by Linda. Then a written cancellation of the contract is sent by Linda, received, and (by Chris's phone call) acknowledged.

And then APX initiated an unsolicited telephone call during which my wife believed she was giving them another chance. She was just trying to be polite and nice - and now she's emotionally deeply hurt by this company's calloused and unrelenting demands for more than 2000. We were not given anything in writing to consider and sign (or decide not to sign) after that phone call. If a door to door sales company is allowed to telephone consumers after receiving a written cancellation and pressure (they would say "persuade") an oral consent to "try again" - and such consent alone is allowed the full weight of a written contract); the right to cancellation becomes nothing more than an invitation for any company to pursue the poor consumer (who is not an attorney) over the telephone and then insist an oral statement made at that moment has the weight of a irrevocable written contract.

The legal issues raises, in my opinion, are numerous: Where is consumer informed consent in this? Where are consumer rights standards protected in this practice? At what point would this "consent" become an unbreakable contract? - (The instant uttered in the conversation? When new equipment is first installed? Three days after one or the other? What if the setup still did not work and a third visit brings some additional equipment? What if it still would not work satisfactorily?) Doesn't this effectively circumvent laws limiting or nullifying the validity of oral statements and agreements in door to door sales?

What information did the company representative share over the telephone prior to this oral consent? Were the contractual obligations the company asserts a consent would create fully explained (in this case, we promise you they were not). Since the whole scenario involves an unexpected phone call in the midst of other household distractions, and is inherently impacted by the telephone persuasiveness of the APX salesperson, how can FTC and state consumer protection standards be maintained if such practices are allowed?

Nothing would have prevented APX Alarm from bringing subsequent written documents that would have provided us opportunity to assess what they now assert Linda’s consent to "let them try again" would obligate. Since the initial written contract was wholly canceled by the communication of cancellation, in my (non lawyer) opinion, no contract existed as of that time. What else can “I hereby cancel this transaction” mean? As such, a new contract should have been presented from APX to us that could be read, assessed, and either signed or not signed.

I believe these practices are predatory. I believe they violate at least the intention of consumer protection laws - particularly those related to home solicitation sales contracts and practices. I think a survey of recent legal issues and news reports (not always exactly like ours) about APX Alarm nationwide demonstrates a pattern of abuse and disregard of consumer rights. I hope some broader action against this company (the only thing big enough to make them stop) is warranted.

Nelson of Autell, GA September 13, 2009

I signed a contract with APX alarm systems in 2006 for 3 years, my contract expired in June 2009, I tried to cancel the service in Sep 2009 and they told me my contract was auto-renewed for another year automatically, I checked the contract and in very small print states so, my complain goes because whoever sold me the service 3 years ago never walked me through the contract or told me about the auto renewal for another year. I called APX alarm systems about the situation and they bounced me to Scurity networks because they sold my contract to them, I called security networks and they say and I quote from Mr Tevon "I was not there when you signed your contract, you bought the service from APX not from us, we just bought your contract and if you want to cancel you will have to pay 439.89"... That is more than 10 months of service!! and there is not amount of how much will be the cancellation in the contract. People like this is the one who makes you value customer service specially in tough economic times like this. I will continue my campaign in twitter, FB etc till my situation get resolved. I already called Clark Howard and the Hispanic newspaper in Atlanta about this.

Teresa of Woodbridge, VA September 10, 2009

Well on Sept 9,2009 I was informed that APX alarm sold my contract to ADT which i don't like because they scammed us before well when I called ADT the person was very rude and i told him what was up with the account the letter i got in the mail datteted sept 3rd said that ADT was going to honnor the remaining contract that i had with APX so when I called to find out why they were going to charge me another security deposite when i paid that with APX they said that APX kept that one and now i owed another one. They also added 2 more years to my contract with them when my contract was due to end at the end of this year i told them that i did not sign any thing that authorized them to do that they said they could because i signed one with APEX and they also up the monthly fees from 44 a month to 80 a month plus the security deposite the payment were to be taken out on the 28th of the month but ADT was now going to take it out on the 18th and if i wanted to change it i had to pay another fee for that to be done. When i called APX they were no help they acted like they did nothing wrong and they said it is in the contract they can sell to any company they want and they don't have to notify us they are doing it and they get to keep the security deposite they said that it is in the contract and i found nothing that said either.

Barbara of Jackson, MS August 24, 2009

The tech. told me that my checking account will not be charge until we finish restoreing our house. I made sure I asked him twice and he said my account will not be charge. I went through the motion of speaking to someone one the phone and I knew that the payment will come out on the 15th and I understood at that time nothing will take place until we finish with the house. Now this is how the tech. go me. He said can I go ahead and install some of the equirement now and we will just montion the properity for now until you guys are finish. well I told him we really didn't have room for any of the equirement because we where bocking down walls, floors, windown and everything. He said we will just do this for now and when you finish with the house we will come back and complete everything at that time. Don't you know as soon as the tech. left and I went through the survey then had started taken the money out of my account on the 19th. I will never get an alarm form another company again.

Missy of Oak Ridge, TN August 12, 2009

I had a young man come to my door and sell us an APX alarm system. Well after being rushed into it we reluctantly said yes. Within minutes two sloppily dressed, body pierced, tattooed men came into our house to install it. They were very unprofessional to say the least and we were uneasy the whole time. They came in two unmarked vehicles and it just seemed suspicious. The equipment was bulky and antiquated and it took a long time to install ( it was 9:45p.m when they got done).

After thinking abnout it we decided to cancel, I mailed the cancel notice in the mail the next morning.I didnt put a stop on my check because I assumed the cancel would do the trick, but after I saw that a week later they charged me for a month, I finally put a stop on it just in case. About a week ago they sent me a reimbursement check after finally getting it cancelled. I assumed it was for what they charged me. I just found out that they stopped payment on the check they sent me!!!!!

Joshua of Beaumont, TX August 9, 2009

I was working offshore when I found out from my wife that a man came buy and sold her an alarm system. She said the man claimed you can cancel anytime and the equipment was free. By the time I got home and had a chance to call them, they said the contract was for 60 months and it was over 2000 to cancel!!! What's really irratating is the salesman didn't even leave my wife with a contract. I am very unpleased with the whole situation. I'm thinking of contacting the BBB and possibly a lawyer over the deal.

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