Stealth & Secureacom rip-off scam

[Jay]

Stealth & Secureacom rip-off scam



Beware of a deceitful practice that Stealth has apparently been doing for
years. Months after your contract ends they contact you with a claim that
the contract is still enforce and you owe lots of money. They follow this up
with bullying tactics.



Their position is the contract has a self-renewal clause wherein you have to
give several months' written cancellation notice otherwise the contract is
automatically renewed for a year, or more.



This is so unscrupulous on many counts, and it seems to be a long standing
business policy. They wait a long time for the account to build up the bucks
before they drop their bomb. A fair and respectable business would give
advance notice of this situation before the initial contract draws to an
end; not Stealth. A fair and respectable business would not have such a
vague, insidious clause; not Stealth. A fair and respectable business would
ensure their salesmen point out and explain the intent of the vague clause,
rather than implant a different impression i.e. that the contract actually
ends after a specific time (as most contracts normally do), not Stealth.



It is no wonder they have been suspended once already for their business
practices. Yet it still goes on.



Anybody else been victimized by this scam?

 

[Jay]

Nope, we believed our obligation was finished when the contract ended
normally after 4 years. Now several months after it ended they are saying
the contract is self-renewing. They refer to an ambiguous clause that we
understood\understand to mean our contract is over after 4 years and we can
renew for another year if we wish.





Are you saying that you cancelled service first...then months later they're
tagging you for $$? If you cancelled in writing you're covered.




| Stealth & Secureacom rip-off scam
|
|
|
| Beware of a deceitful practice that Stealth has apparently been doing for
| years. Months after your contract ends they contact you with a claim that
| the contract is still enforce and you owe lots of money. They follow this
up
| with bullying tactics.
|
|
|
| Their position is the contract has a self-renewal clause wherein you have
to
| give several months' written cancellation notice otherwise the contract is
| automatically renewed for a year, or more.
|
|
|
| This is so unscrupulous on many counts, and it seems to be a long standing
| business policy. They wait a long time for the account to build up the
bucks
| before they drop their bomb. A fair and respectable business would give
| advance notice of this situation before the initial contract draws to an
| end; not Stealth. A fair and respectable business would not have such a
| vague, insidious clause; not Stealth. A fair and respectable business
would
| ensure their salesmen point out and explain the intent of the vague
clause,
| rather than implant a different impression i.e. that the contract actually
| ends after a specific time (as most contracts normally do), not Stealth.
|
|
|
| It is no wonder they have been suspended once already for their business
| practices. Yet it still goes on.
|
|
|
| Anybody else been victimized by this scam?
|
|

 

[G. Morgan]

Subject: Re: Stealth & Secureacom rip-off scam
Newsgroup: alt.security.alarms

Nope, we believed our obligation was finished when the contract ended
normally after 4 years. Now several months after it ended they are saying
the contract is self-renewing. They refer to an ambiguous clause that we
understood\understand to mean our contract is over after 4 years and we can
renew for another year if we wish.

That's a standard clause in most monitoring contracts. It's called automatic
renewal. Just because you didn't *read* your contract doesn't make it a "scam".

 

[Frank Olson]

Nope, we believed our obligation was finished when the contract ended
normally after 4 years. Now several months after it ended they are saying
the contract is self-renewing. They refer to an ambiguous clause that we
understood\understand to mean our contract is over after 4 years and we
can renew for another year if we wish.

So, let me get this straight...

If you decided you wanted to continue the contract but failed to send in
your payment, you would expect what??

If you decided you didn't want to renew your contract and didn't send in
your payment, then??

The standard renewal clause in every monitoring agreement is there to
protect *you* (the end user). If you decide you wish to cancel monitoring
you must send a letter (register it to be safe) before the contract expires
(there's usually a "minimum notice period" stipulated). As long as your
letter arrives there *before* the beginning of the notice period, you're
safe, the contract will "expire", and you're no longer "on the hook". Read
the "foin print, laddie"...

 

[Jay]

We did read the contract and review it with the Salesman before signing. On
that clause he did not explain it as automatic renewal, nor did we read it
that way. The wording is such it can be interpreted either way. Then
Stealth waits several months to contact people with a bill for additional
money; not first or second month, they want to build up the dollars. And a
respectable company would inform customers as their contract is ending.

They have been doing this exact routine to unsuspecting people for years.
And have done nothing to change it. It is a purposeful scam.

 

[J. Sloud]

IMHO, auto renew anything doesn't protect anyone but the seller.

The best practice is to auto-renew the contract for one year terms,
but allow the sub to cancel at anytime after the initial term is up.
It's not about the length of term or the monitoring fee. The contract
spells out specific duties of both the customer and the monitoring
company. It limits the liability of the monitoring company to things
for which they are directly responsible, and indemnifies them against
third party claims. No company would monitor your system without a
contract of some sort in place. Doing so would expose them to huge
liability, and the entire industry realizes the importance of
contracts. Remember, we're protecting lives and critical property by
monitoring fire alarm systems, duress systems, and systems that
protect federal government facilities that keep secrets safe from
those who would do us harm. We aren't selling cell phones. If a
security company was to stop monitoring a fire alarm system because a
sub forgot to renew their contract, what would happen in the event of
a fire. Who would you sue? How about a workplace violence situation
where the duress button stopped being monitored because the contract
was up? What if we discontinued monitoring on the various SCIFs that
hold our nations secrets safe because the contract ran out.

 

[Robert L. Bass]

The best practice is to auto-renew the contract

for one year terms, but allow the sub to cancel
at anytime after the initial term is up. It's not
about the length of term or the monitoring fee...

Exactly! This will allow the alarm company to maintain its contractual
protection from lawsuits in the event there's a break-in without placing an
undue financial obligation on the customer. Unfortunately, few alarm
companies are willing to do it this way. Most use automatic renewal as a
means to grow recurring monthly revenue, which is usually their largest
profit center. If more dealers had Mr. Sloud's attitude about business
there would be far fewer angry customers.

--

Regards,
Robert L Bass

=============================>
Bass Home Electronics
2291 Pine View Circle
Sarasota · Florida · 34231
877-722-8900 Sales & Tech Support
http://www.bassburglaralarms.com
=============================>

 

[Robert L. Bass]

I was speaking from the standpoint of a homeowner,

not a national security organization. Yes, I'm 100%
in favor of contracts and I understand that both
parties must meet certain obligations. However, I
see nothing wrong with sending out a form letter 60
days in advance letting a homeowner know it is time
to renew...

You're absolutely right. Some states require such advance notification.
Unfortunately, most do not. The problem is that many alarm companies are
not interested in giving the customer advance notice. That would serve as a
reminder to unsatisfied customers that they need to cancel right away. If
the customer doesn't remember in time he's obligated for another one, three
or five years (whatever the contract says).

The automatic renewal is a necessary clause from the standpoint of the alarm
contractor and the central monitoring station operator. Unfortunately, its
legitimate purpose is often seen as secondary to financial gain it provides
the dealer.

For this reason and many others it is incumbent upon you as the client to
read and thoroughly understand the contract you're signing. You can not
rely on the oral representations of the salesman. Anything like this should
be run past your attorney before you sign. Sadly, most people don't do
that. They listen to the alarm salesman, believe he has their interests at
heart (or at least that he's not entirely dishonest) and sign on the dotted
line. Most of these guys are honest.

Unfortunately, there are enough dishonest alarm companies to make the rest
of the industry look like a bunch of jerks. As to those who post here, you
can get a fair idea who is who by reading the answers they post to threads
like this. The ones who gave you a raft of "jminex" should not be allowed
near a customer's home or family.

As it stands now you're probably stuck. You can and should complain to your
state's licensing authority and/or the department of consumer protection.
Let them know you were deliberately misled. Articulate as best you can
recall what the salesman said about this clause when you first discussed it.
You might be able to enlist the aid of the authorities in dealing with this
dishonest contractor.

Best of luck.

--

Regards,
Robert L Bass

=============================>
Bass Home Electronics
2291 Pine View Circle
Sarasota · Florida · 34231
877-722-8900 Sales & Tech Support
http://www.bassburglaralarms.com
=============================>

 

[Frank Olson]

Unfortunately, there are enough dishonest alarm companies to make the rest
of the industry look like a bunch of jerks. As to those who post here,
you can get a fair idea who is who by reading the answers they post to
threads like this. The ones who gave you a raft of "jminex" should not be
allowed near a customer's home or family.

I take it you're referring to the posting of outright lies as the
"yardstick" by which one should measure who's a jerk and who's not. I
suppose your reference to my having "borrowed" your FAQ's without permission
is what... a "mistake"?? And I further suppose anyone that engages in the
practice of flaming another individual should be included in your
"who-is-who" list regardless of how well they articulate that flame. Before
posting a response such as you have above, I'd suggest you "check your
mirror" first.

As it stands now you're probably stuck. You can and should complain to
your state's licensing authority and/or the department of consumer
protection. Let them know you were deliberately misled. Articulate as
best you can recall what the salesman said about this clause when you
first discussed it. You might be able to enlist the aid of the authorities
in dealing with this dishonest contractor.

I seriously doubt that the clause was even mentioned by the salesman and
*if* it was, most don't understand what it means anyway. Your advice about
"consulting a lawyer" if you don't understand something in the contract
*before* you sign it is good, but not something most people think about
doing. Reading all the "fine print" *is* however, mandatory *before* you
sign *anything*. In my experience, "vague clauses" usually result in
rulings in favor of the end-user and very seldom benefit the
contractor/alarm company. Trips to the courthouse can tend to be expensive
though...

 

[R.H.Campbell]

You are correct Frank. I doubt that one in a hundred clients reads the fine
print on the back of any alarmco's contract. Nor would it be economically
viable to consult a lawyer after the fact for most clients unless they are
angry enough to make an issue of it, regardless of cost. I know that I have
had only about three or four customers of my 800 read my contract terms
before signing. It is not normally an issue, since the client by nature
usually trusts his security dealer given the nature of what we do. However,
RLB is quite right; there are some companies who use this automatic renewal
(for the same length of time as the original contract - not month to month)
as a means of securing the client's long term business. Nor do the companies
that employ this tactic ever warn the client in advance of the end of his
original term contract.

We had one large company here in town that was notorious for the auto
renewal clause for an additional five year term, unless the client sent the
alarmco a registered letter three months in advance of the end of the
original term. They are now gone, and the large company who bought them
wisely decided not to employ such tactics.

It has been my experience (albeit only local and somewhat limited) that the
companies that employ such tactics are likely to also be the ones to
"lockout" customer owned boards. Frankly, these sorts of things are what we
in the industry should be attempting to expose since such tactics reflect
badly on the vast majority of good and reputable alarmco's in our
industry.....

(soap box mode "off"....)

R.H.Campbell
Home Security Metal Products
Ottawa, Ontario, Canada
2004 Nomad "full dress"
www.homemetal.com
www.flickr.com/photos/tourman

 

[Robert L. Bass]

Unfortunately, there are enough dishonest alarm

I suppose your reference to my having...

Actually, I wasn't thinking of you at all. Where's that coffee you keep
talking about? :^)

And I further suppose anyone that engages
in the practice of flaming another individual
should be included in your "who-is-who"
list...

Nope. I was speaking of those who auto-flame any poster who complains of
having been misled by some alarm salesman.

I seriously doubt that the clause was even
mentioned by the salesman and *if* it was,
most don't understand what it means anyway...

Oh, please! I've never met a single alarm salesman who didn't know the
effect of an automatic renewal clause.

Your advice about "consulting a lawyer" if you
don't understand something in the contract
*before* you sign it is good, but not something
most people think about doing...

That is precisely why I said it. People need to clearly understand what
they're getting into when they sign a monitoring agreement. It's not that
the clause in question is evil. It's a necessary and perfectly valid part
of any monitoring agreement. Problems arise when people rely on oral
representations by salesmen or (perhaps even worse) when they don't even
ask.

Reading all the "fine print" *is* however,
mandatory *before* you sign *anything*...

Read it and understand it. If you're unsure, ask your attorney. What about
this do you disagree with?

In my experience, "vague clauses" usually result
in rulings in favor of the end-user and very seldom
benefit the contractor/alarm company...

True. In most US jurisdictions vague language is always interpreted against
the dealer who wrote the terms. However, most of these clauses are not
vague. The terms are clear enough to anyone schooled in contract law.
Whether the terms of the contract which the OP signed are vague or crystal
clear remains to be seen. What is apparent from the gentleman's post is
that he was misled by some alarm salesman. That would not have happened if
his attorney had explained the contract to him.

Trips to the courthouse can tend to be expensive though...

That is even more reason to have an attorney examine the contract before
signing it if the customer is at all unsure of its effect. A lawyer could
evaluate (not author it but determine its intent) the typical alarm sales
and monitoring contract in an hour or two. That's a lot less expensive than
filing suit later.

--

Regards,
Robert L Bass

=============================>
Bass Home Electronics
2291 Pine View Circle
Sarasota · Florida · 34231
877-722-8900 Sales & Tech Support
http://www.bassburglaralarms.com
=============================>

 

[[email protected]]

Auto Renew, that sucks, id never go with a company that did something
like that. Most businesses where you have recurring accounts, they will
give you notice in advance that it is going to expire, be it from web
hosting, to domains, etc. thats the only way I would ever go with any
company, I would never want to HAVE to send them a cancellation notice,
thats not my job, Im the client. When you sign up, you can be given the
choice to have it auto renew, but then you would need to sign something
seperate from the normal contract.

Ofcourse with alarm monitoring you have the issue of the alarm
continuing to dial your CS, but, still thats no right to screw the
client. Anyway, there is a way out of every contract, they just dnt
tell the client that. As for protecting the client, what exact
protection does an alarm monitoring station provide, pretty much none,
its good if you are not there and your alarm goes off ...thats it.
Physical protection from the alarm itself, not much either, except the
alarm can scare off the intruder, sometimes.

 

[[email protected]]

like it really gave them that much extra work, its all basically
automated.

 

[[email protected]]

he he, we dont use contracts down here .. the courts here wont do
anything about it anyway .. only ones that get courts behind them, are
the banks. There are a couple alarm companies using contracts, but then
they will never be able to do anything with it anyway if the client
doesnt pay. I see where you are going with liability though, but here,
that is not an issue .. in the US things are done right ...here, well
you know ..

 

[G. Morgan]

Subject: Re: Stealth & Secureacom rip-off scam
Newsgroup: alt.security.alarms

Nope. I was speaking of those who auto-flame any poster who complains of
having been misled by some alarm salesman.

If you were referring to my reply to the gentleman, let me clarify something;
it was NOT a flame. I merely told him that because he didn't carefully read
and understand his contract, it's not an alarm company scam.


I will sum up why the clause exists in a little hypothetical event:

Suppose a client does not pay his bill because he assumes the contact is over,
and is no longer obliged to pay... (which is the case here with the OP, he no
longer wanted monitoring, but did not inform the alarmco). Let's also say
three or four months go by after the initial contract term without payment from
the customer. Also assume some letters and past due bills were sent to the
customer, and a cancellation notice.

During the process of bill collecting in that period, and after the cancellation
notice (which is really a plea for payment) an actual alarm is transmitted. The
cancellation date on the notice has past...

What would happen if????

A> The alarm was triggered by a smoke detector in a real fire --> and no
dispatch was made <-- property damage occurs, and worst case, a life is lost...


Would the homeowner sue the alarmco???? You bet they would.. so would the
insurance company. They would argue the alarm should still be monitored and
signals "reacted to". The alarmco would probably LOSE the case if no such
renewal clause exists, and they were denied a dispatch because the account was
deleted for non-payment.

 

[[email protected]]

its not a scam, once it sais it on the contract. He needs to get a copy
of his signed contract and go from there.

Banks are the ones down here that screw you. They have the same thing
you sign, has alot of stuff that noone other than an old school british
trained lawyer would understand. After they reposessed my vehicle,
though I was only a week late, and had paid $17,000 over 3 years, this
all for a jeep cherokee at that, I had a lawyer go over the signed
paper with me. (i got the jeep back by the way)

So, he translated, what was not in plain english. It said::

"overdue means if it is not paid within or no more than 1 minute after
the due date. Over due also means if the **customer** has been late at
least 5 times, regardless of whether they are paid up to date. The
banks **appointees** can use whatever force neccassary to obtain the
vehicle if loan is overdue, they can break down your door if needed,
they can 'basically' **defend** themselves if they without notice or
acknowlegdement of them being an **appointee** from the bank, are
attacked as intruders or alike, to any degree they feel neccassary,
physical force is acceptable. They can break into any home/property no
matter if you own it or not, once the vehicle is **thought** to be
located there. Anything **screwed down** added to the vehicle cannot be
removed or they will **crack your ass** with the banks approval. All
charges incurred are added to the **customers** account. The **
customer** still owes the outstanding amount with or wihout the
vehicle, whether or not the bank sells it of less than a 1/3rd or less
than the insured price. The **customer** will be sued and charges
brought against them, and if not able to pay the outstanding amount,
can be subject to imprisonment in **Her Majesties Prison** (another
name for one of the worst prisons in the word)."

Well, yah know, they dont tell you that when they are advertising in
the newspaper that they have such low loan rates and sign you up, even
if you dont have a real job or not!! Plus the paper you sign is all in
jibberish, old british law, without a lawyer you'd never understand
what it sais! Even the British did away with this long time ago. then
again, they will never really get anyone here in prison for this, just
like any other contract, noone cares about that here ;-0

 

[[email protected]]

what they do here, at one CS, nothing to do with me, i just do CCTV and
computer set up for them, they sometimes just dial in and set
everything on audible!! Basically, every job they do, they download,
and therefore have access to all of them.

 

[[email protected]]

No, I just do the set up for them, too many head aches ..

I agree with you, but not everyone is as good and honest as you are ;-))

 

[[email protected]]

overhead ofcourse ...but what I meant was someone who was a client for
3 or 4 years, paid up that time, the extra couple months wont hurt ....
if they want to cancel

 

[[email protected]]

yeah i know, but no worse than taking them to court