KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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Comment on ADT owing accounting on Vivint recovery / webinar sign-up
November 2, 2021
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Title: Borrowing and finance option: DealerAlly Program
When: November 9, 2021 12 pm ET
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Hosted by: Ken Kirschenbaum,Esq
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Comment on ADT owing accounting on Vivint recovery from article on October 13, 2021
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Ken,
IN RESPONSE TO ADT-VS-VIViNT
Vivint isn't the only alarm competitor who has used deceitful tactics to steal ADT's customers.
During the 8 years I spent at ADT, I observed many ADT corporate* accounts who were 'taken over' by its own dealers, and sold back to ADT. (*Corporate meaning the account was originally obtained directly by ADT and a dealer was never involved.) How can that be? Same lies and deceit as Vivint!
Not all of ADT's dealers practiced this, but the ones that did caused a lot of problems and ruined a lot of long term customer relationships.
Countless ADT customers were told they were due for a free system upgrade and just needed to sign here. They saw the ADT logo on all the dealer paperwork so they signed. Then, their bills went up; or they were being billed twice; or their new alarm was falsing. Or they had an alarm, but no one called! In many cases, the 'new' equipment was not an upgrade, rather, a cheaper system was involved and many hardwired devices went dis-connected due to all new wireless being put in. It was sickening to learn that a good, working alarm system was now all chopped up. And, of course, the dealer won't return their cries for help. Go figure. These frustrated people were transferred all over the country until they landed on my desk because my co-workers knew I would get involved. Taking notes, I would then complain to the dealer manager for NW and raise my voice to get his attention. I SEE A PATTERN HERE...... etc. Some customers we could appease and some we could not.
Irritated enough, these customers certainly didn't like the taste left in their mouth after I (the only person who would tell them the truth) explained the ADT/DEALER relationship, and that this particular dealer had lied and tricked them and ADT.
When I worked there, ADT could not control it's offending dealers, even after the dealer was repeatedly warned. (Perhaps ADT needs a 3-STRIKES and you're OUT provision.) With that being said, remember, not all dealers are bad. The majority are star performers, nary a problem and the vast majority of dealer generated accounts are good new accounts. That makes ADT happy and, it's Shareholders happy.
Well, the secret is out now, that ADT fights with its own dealers over its own accounts. It just does not make sense on paper to pay a salesperson commission one time for establishing the account, then have to buy back the account from their own dealer for $1,200 (and upwards) at a later date.
Now, this is a stretch, but in closing, ADT should be suing its own Dealer Division for allowing those rotten-apple dealers to stay on, allowing them to continue to interfere with long established accounts. (I'll bet the ADT Dealer Account Managers earn commissions so they are reluctant to discipline/dismiss dealers when serious offenses occur.)
In closing, it's my opinion (that) what ADT could have stopped years ago, has now morphed into a global concept of stealing established alarm accounts. If ADT had sued its own dealers, (when they had it coming) it would have shown all others, not to dare steal from ADT. Had ADT been aggressive about it, Vivint probably would have taken notice. With all that said, ADT, how do you like that taste in your own mouth?
Cynthia Hart
Retired Security Consultant
Oregon
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Response
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Keep in mind that it hasn’t been established that Vivint stole from ADT; it’s allegations in the lawsuit. We will see where it ends up. The original issue was whether ADT should or would reimburse any ADT dealers for money that had been charged back on any accounts affected in any settlement or recovery from Vivint.
Stealing accounts isn’t good for any industry, alarm industry included.
What goes around comes around.
Anyway, I don’t represent ADT corporate so I have no advice for them.
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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301
ken@kirschenbaumesq.com
www.KirschenbaumEsq.com
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