WASHINGTON, D.C. — The Federal Trade Commission (FTC) has begun distributing nearly $500,000 in payments to consumers harmed by deceptive financial practices employed by home security company Vivint Smart Homes, Inc. The company allegedly misused credit reports to secure financing for unqualified customers, violating consumer protection laws and harming innocent individuals in the process.
According to the FTC’s complaint, filed in April 2021, Vivint’s sales representatives engaged in multiple fraudulent practices to bolster sales. These tactics included using the credit profiles of unrelated third parties with similar names to obtain financing for unqualified customers and adding cosigners to agreements without their consent. When customers defaulted on loans acquired through these methods, the unrelated third parties or unauthorized cosigners were contacted by debt collectors, resulting in adverse effects on their credit histories. Some affected individuals even reported being victims of identity theft after being contacted by the collectors.
Refund Distribution Details
On December 5, 2024, the FTC sent out the first round of refunds to 470 affected consumers who filed valid claims by the deadline. The average payment amount is $1,056. Recipients are advised to cash their checks within 90 days, as specified. Additional payments to other eligible claimants will follow at a later stage.
FTC’s Consumer Protection Efforts
This case is an example of the FTC’s efforts to address deceptive business practices, particularly those involving financial and credit-related transactions. By holding Vivint accountable and ensuring restitution for affected consumers, the FTC continues to reaffirm its role as a defender of the public from unscrupulous business conduct.
The FTC’s action against Vivint Smart Homes emphasizes the importance of financial integrity and consumer rights in an increasingly complex marketplace. This settlement serves as a reminder to corporations that exploiting loopholes for profit at the expense of others will face significant legal and financial consequences.
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