Arizonans Could Receive Restitution From Alarm Company

AG claims company hid important facts from consumers

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PHOENIX – Arizona customers of an alarm company, Guardian Protection Services, could receive over $500 as part of a settlement with the company to resolve claims that the company hid important facts from consumers. Those facts include an “early termination fee” that required consumers to pay for months or even years of future service that they would never receive.

The Arizona Attorney General’s Office (AGO) alleges that the company convinced its Arizona consumers to enter into contracts with “unfair provisions pertaining to advertising, selling, installing, monitoring, and servicing electronic security systems.”

If you believe you have been a victim of consumer fraud, contact the Arizona Attorney General’s Office in Phoenix at (602) 542-5763, in Tucson at (520) 628-6648, or outside the metro areas at 1(800) 352-8431. Consumers can also file complaints online here.

Allegedly the company’s contracts inadequately disclosed key terms and cancellation options. According to the AGO, in some cases, the company “misrepresented its inability to cancel consumers’ contracts after the consumers complained of deceptive, unfair, and/or fraudulent acts and omissions made during the advertisement and/or sale of their security systems.”

As a result of the settlement, the company must pay $227,558.33 in restitution to 603 Arizona consumers who paid more than $500 for an early termination fee. Consumers who paid more than $500 in early termination fees will receive restitution in the amount they paid over $500 for early termination.

The AGO says a Claims Administrator will contact eligible consumers. No further action is needed by consumers.

The Consent Judgment further requires the company to pay an additional $200,000 in civil penalties and requires it to clearly disclose any early termination fees in the future. In addition, consumers must be directed to sign their initials next to any termination fee provision for it to be valid.

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