QUESTION:

Ken,

     I just recently installed some TV mounts for a customer that just had a system installed by APX alarms. These APX systems are popping up all over, and at the typical cost to the customer. Free alarms, but with a $70 activation fee, and a high monthly cost and 4+ year contract with no way out.

     According to the subscriber, however, the door-to-door salesman came at 6:30 pm, and by 8:30 the system was installed by 4 standing by technicians, and the salesmen left with a signed contract. The customer is at fault for not reading and asking enough questions, but as an elderly lady, she was taken advantage of, by signing a 5-year contract at $45/mo for a 2 door 2 motion wireless system with all the strings attached. She had a 3-day written letter grace period that the sales person did not disclose, but it is in the fine print, although the contract was signed on a Friday night.

     If APX did what the subscriber claims, these door-to-door tactics are unethical. What option does my customer have to get out of this contract, if any? We would love to give her honest service but APX will not allow her to cancel the contract.

 Ralph

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ANSWER:

    Door to door consumer sales, including alarm systems, are required to provide notice of cancellation.  You can read the federal and state laws at http://www.kirschenbaumesq.com/noticeofcancel.htm

    Every jurisdiction requires two things, the notice of cancellation at the end of the contract above the customer's signature, and the actual cancellation form that the customer can use to send to the company to cancel the sale.

    As far as I know, every jurisdiction permits the home owner to cancel within the 3 days, and the 3 days does not start to run until the cancellation forms are given to the home owner.  The above facts in the question would permit the home owner to cancel, even after the installation because the cancellation form was not given [according to the facts in the question].

    If APX did in fact follow the proper procedure, give the 3 day notice in its contract and the cancellation form, then it was within its rights not to permit cancellation.

    Incidentally, to those of you who don't use the cancellation notice, or have the proper wording and font size in your contracts, don't be surprised if your local Attorney General or Consumer Affairs office cites you for deceptive business practices.  You'll wish you upgraded and used proper contracts - get them today at www.alarmcontracts.com