Vivint Settles with the FTC
The Federal Trade Commission (FTC) is notifying over 9,000 individuals about potential compensation related to a settlement with Vivint Smart Home, Inc. This settlement arises from allegations that the home security company unlawfully utilized credit reports to facilitate customers' access to financing for its smart home monitoring and security products. The FTC asserted that Vivint violated the Fair Credit Reporting Act (FCRA) by manipulating credit reports to qualify prospective customers for financing.
The FTC's complaint stated that Vivint's sales representatives engaged in deceptive practices when customers were denied initial credit checks. In such cases, the company sometimes gained financing approval for unqualified customers by either utilizing the credit history of an individual with a similar name or enlisting a friend or relative as a cosigner without proper authorization. In situations where customers who qualified through these illicit methods defaulted on their loans, innocent third parties were pursued by debt collectors, leading to potential harm to their credit. This situation resulted in consumer complaints of identity theft to the FTC.
In the settlement, Vivint agreed to pay $20 million in total, encompassing civil penalties and consumer restitution, with more than $4.7 million earmarked for the claims process. Additionally, the settlement mandated Vivint to establish a Customer Service Task Force dedicated to aiding victims of the fraudulent scheme. Affected consumers, predominantly reached by mail, with around 1,400 through email, have until October 9, 2023, to file claims. Further details can be found at www.ftc.gov/Vivint, and inquiries about the claims process can be directed to the claims administrator at admin@vivintrefund.com or 1-833-472-1996. The FTC, through interactive dashboards, provides detailed refund data by state, having returned over $392 million to consumers nationwide in 2022. The FTC's mission centers on safeguarding consumers and promoting fair competition. For additional consumer information, visit consumer.ftc.gov, and report fraudulent activities at ReportFraud.ftc.gov. Stay updated on FTC news and alerts by following their social media channels and reading consumer alerts and business insights.
