Expert: Rob Painter - 12/28/2011

Question
QUESTION: Have security system contract for 3 yrs, 21 months complete, house fire 12/9/2010, notified them for suspension of services which were agreed to, estimate time to reconstruciton 6-8 months.  They continued to bill (auto billing setup)me, notified them, they agreed to reverse the charge but didn't, so I did with the credit card company and rescinded their auto billing status.  they had earlier lost the original contract I signed and after a few months sent letter asking me to resign and they would give me free month which I did.  They never credited me for the free month and I didn't follow up as I wanted the service to continue and didn't want the hassle. At the time 6 months was up they phoned asking for install date, told them still building and finish date extended, stated I would call when finished as I wanted the system back, and acknowledge remainder liability to continue per contract.  Now they are billing for 3 months service, non rendered as indeed no power/phone to allow their system to work and they are threatening to take legal action.  I have sent a 3 page letter accounting for all their broken promises to reverse charges etc to their COO as phone conversation the last time ended in a yelllng match. They originally wanted a letter from police/fire attesting to the fire, this request I passed on to my public adjuster handling the fire and its aftermath (certified and licensed by the state) who then sent an official letter to them attesting to the fires and uninhabitable nature of the house pending reconstruction. After receiving a bill for 3 months service I called and was told I HAD TO GIVE THEM A LETTER FROM THE POLICE/FIRE DEPT, this now 9 months after the fire, they acknowledge receipt of the letter from the public adjuster but stated it was from insurance, not so.
Haven't received a response yet, but should they not come to their senses what action should I seek. Pharmacist here not a lawyer, but I can't imagine it legal to charge for services that cannot be physically rendered.  Thanks

ANSWER: Hello,

My first thought is ADT, but maybe not. All these large firms such as Direct TV, ADT, ATT, and so many others are a bureaucratic nightmare, its very difficult to know where to turn. This can affect your credit score, being hounded by bill collectors at all hours of the night that don't care about the circumstances, they just want the money.
It's too bad you got caught up in this and unfortunately, these companies think they should be rewarded for their bad actions.
This will not stop until you contact a lawyer to go after them for breach of contract and you should get your legal fees back depending on your state. Have they damaged your credit. You better find out if they have you as a revolving account and are showing you as a late pay.
These days, it's very easy to get a free credit report and don't sign up for any services! Make sure you cancel in the allotted time, or you can get a copy if you send to all three reporting agencies.
If they have in fact damaged your credit, ask the lawyer what your recourse is. You can write a letter to all three credit reporting agencies explaining the situation, but why should you have too?

I had a similar situation with Direct TV where they wanted to charge me for early termination even though I had been with them since 1996! They lied to me. They called me a liar (which is not a good way for customer relations to flourish)and it got real ugly.
The same thing happened with the constant billing for something I did not owe, the collection agency etc.

Contact an attorney because this will not get better on its own and please let me know how things work out.

Good luck!

---------- FOLLOW-UP ----------

QUESTION: Actually a follow-up, haven't heard from these a-holes and they haven't dinged my credit, all bluster? Anyway thanks for your input.  I'll plug Simplisafe at this point, you buy the equipment (for $400 for me) and its $15/month vs $50 with no contract, put it up yourself in 30 min, very easy.

Answer
Hello,

Yes, it is a real problem with these big companies in which you go nowhere talking to a supervisor or someone that actually listens to your situation. Funny how they don't tell you at the time of contract that their customer service sucks.
I would recommend going to your states attorney general's consumer fraud ivision and placing a complaint.

ADT pulled some crap on me when we had a system installed. The install was a joke and all one had to do was flip a light switch by the door to turn the system off. When I called to complain I got the same run around as you, but I told them I was internationally known and had no problem addressing their idea of security (with pictures) and they rushed out to correct the problem.

the consumer needs to attempt to check these businesses out for complaints with consumer protection and BBB before going into a contract. These are commonly scams just like the early termination fee.

Wild Blue a Satellite Internet Service who installed the dish, after termination because of lousy service at $80 a month states the consumer must remove a portion of the satellite dish and the control box and send it back. They can do it for a fee of $125. Now, I am disabled. I have to go on the roof to do this. If I fall and get hurt, you can bet your butt, I will hold them libel an sue the crap out of them! They installed it and I am supposed to risk my life because they are too friggen lazy to come and get their device?

Then we have ATT. Won't even go into that.

Best thing to do is be very careful before signing any contract.
Let me know how it all works out.

Good luck.

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