Caution needed when shopping for security systems

LITTLE ROCK -- Many Arkansas homeowners are concerned about home security issues and numerous home security systems, from simple to sophisticated, are available to address those concerns. And while most home security companies are reliable and provide a quality service at a reasonable price, some Arkansas homeowners have discovered recently that not all sales pitches are entirely truthful, not all services are entirely reliable, and not all costs and fees are quite as discounted as promised.

Because this is the time of year that Arkansas homeowners generally experience an increase in home solicitation sales activity, particularly sales promotions for home security systems, Attorney General Dustin McDaniel issued this consumer alert to inform Arkansans about their rights.

"We've heard it said so often before, but if an offer sounds too good to be true, it usually is," McDaniel said. "Home-security systems are supposed to provide peace of mind, and many companies offer reputable alarm systems. Homeowners need to be conscientious, though, and shop around to find the best offer from reliable companies."

The Arkansas Home Solicitation Sales Act protects consumers who were subject to high-pressure sales tactics and may have second thoughts about agreeing to a long-term contract. The act gives the buyer an absolute right to cancel a contract provided by a home solicitor within three days of signing. The seller must furnish the buyer with a "notice of cancellation" at the time the contract is signed. If that notice is not provided, homeowners should question whether they need to sign the agreement.

Here are some other tips to help you detect fraud if a home security company sales representative knocks on your door:

* The salesperson insists on installing and activating the home security system that day, highlighting a "special offer." Homeowners have been told that technicians are in the area only for a limited time and the homeowner must act quickly to get a "special deal." But realistically, it takes a lot of planning to install an effective security system, and the homeowner should never permit installation prior to the expiration of the homeowner's right to cancel the contract. Furthermore, high-pressure tactics are rarely employed by companies whose business depends on providing quality customer service. A legitimate company will let you weigh your options and will review the system details and notification procedures with you.

*The salesperson claims to represent a legitimate, well-known security company. The solicitor may suggest that he is just there to "upgrade" the existing security system, when in fact he represents a different company. This may lead a homeowner to believe that he must allow the "upgrade" just to keep the system reliable. In fact, if the homeowner accepts the "upgrade," he is trading a system he has relied upon for one of unknown reliability, and usually a higher price.

*The salesperson wants a contract signed without even assessing the home's vulnerabilities. Representatives of legitimate companies will inspect a home to determine the appropriate type and placement of equipment, tailored to the homeowner's needs. Only after that will they prepare a contract.

*The salesperson offers "free installation." The homeowner may think he's getting a bargain, but many "free installation" offers are coupled with long-term, high-cost monitoring contracts. In the long run, the "free" offer may be the most expensive of all. Avoid monitoring contracts of longer than two years.

*Arkansans who may have been targets of this home security sales scam or who wish to find out more about a particular company's credentials may contact the Public Protection Department of the Attorney General's Office via email at oag@ArkansasAG.gov or by calling (501) 682-2341 or (800) 482-8982 (toll-free statewide). They may also call the Arkansas Board of Private Investigators and Private Security Agencies at (501) 618-8000.