Platinum Protection, LLC Questionable sales tactics Provo, Utah

The following is a filed complaint with the Better Business Bureau in Utah along with a response from Platinum Protection and a rebuttal from myself.
If you are considering Platinum or if you have recently signed a contract, please remember that you only have three business days to take action.

The sales team misrepresented the total cost of the security system. Cancellation of the contract requires full payment of the 5-year agreement.
Purchase date: July 6, 2009
Contract term: 60 months
Monthly payment $44.99
The sales pitch mentioned that our neighborhood had been selected for free installation of their system in exchange for advertising their service by agreeing to post a yard sign. Disclosure of monthly monitoring charges was not mentioned until paperwork was being signed. There was mention of notifying the local jurisdiction of the security system during the sales pitch, but there was no mention that there would be fees that would need to be paid by us to the county.
We disconnected the system after two weeks to avoid the risk of setting off the alarm system within the house. Prior to the sales pitch, we had never considered a home alarm system. We fell for the very effective sales pitch because it was presented as a free system and many of our neighbors had previously accepted in the day and were being used as endorsements during the sale. Simply stated: We would prefer not to have the security system in our house since we have no interest in using it. We would also prefer not to pay the remaining $2,500 on the contract over the next 4-1/2 years. Because Platinum has informed me that cancellation would require full payment, I have decided to continue the service for this reason because the payments are spread out and the yard sign probably provides some value as a deterrent. I cannot dispute that the contract is clear on the cancellation terms. Three business days were available to cancel after the contract was signed, but personal circumstances did not allow for the contract to be scrutinized until after the 3 days expired. I am hopeful that others in the country/region have filed similar complaints against Platinum with the BBB such that there is a history of their questionable sales tactics.

(Desired Resolution addressed to Better Business Bureau):

I contacted Platinum a couple of months ago to request cancellation of their service since I had disconnected their monitoring system. To honor the contract terms, I will need to either pay the full contract amount of approximately $2500 (55 months remaining @ $44.99/month) for immediate cancellation or continue monthly payments and provide written notification 4-1/2 years from now to avoid a contract extension. For now, i have opted for the latter as I have described above.
The settlement that I desire is immediate cancellation of the contract and removal of the security system and accessories without further additional payment.

(Response by Platinum Protection to the Better Business Bureau):

This letter shall confirm receipt of your correspondence dated 12/2/2009 regarding the above referenced matter. Please allow this letter to constitute our official response to Mr. Darling. We are truly concerned with his complaints.

We would like to apologize for the frustration Mr. Darling has felt with our company. Our company utilizes a door to door marketing approach, feeling this method is far more effective than traditional marketing campaigns that utilize advertising through the mass media. The savings our company gains by not having a traditional advertising budget allows us to market free systems to our customers. According to our records, Mr. Darling received free equipment and free installation on a brand new system.

In addition to this, we would like to apologize for any confusion that may have taken place regarding Mr. Darling's responsibilities upon signing the Agreement. We try to eliminate this confusion, and in most cases do so, by utilizing bold text on our agreement. In section 3 on the front of the agreement it clearly states, ''This Agreement shall continue for an initial term of sixty (60) months...'' Furthermore, a financial disclosure statement is included on the front of the Agreement so our customers are fully aware of the total fees associated with the entire Agreement.

As a secondary precaution we have every customer take a recorded survey outlining the most important aspects of the agreement. In the pre-installation survey we ask, ''Let's review the Terms and Conditions of your Monitoring Agreement: The Monitoring Agreement is for an initial term of 60 months and during this time your rate will not increase, is that correct?'' We asked Mr. Darling this question, and he responded, ''Yes.'' Finally we asked, ''Do you understand the initial payment will be drafted within 5 business days and thereafter the Monthly Monitoring Rate of $44.99 plus any applicable taxes will automatically be drafted by credit card on the 25th of every month?'' Mr. Darling answered, ''Yes'' to this question.

In his complaint, Mr. Darling indicated that he did not take the time during his right of rescission period to review the Agreement in further detail. While we find that unfortunate, our records indicate that Mr. Darling was fully informed regarding his responsibilities to our company following his signing of the contract. Had Mr. Darling expressed his concerns during the right of rescission period, we certainly would have discussed possible amendments to the Agreement and would have honored his cancellation request if necessary. Because Mr. Darling waited over two months to request cancellation, he was informed he would be responsible for eighty percent of the remaining balance of the Agreement (rather than 100% of the Agreement as he indicated in his complaint). At this point, we are more than willing to honor Mr. Darling's cancellation request, however we would expect the cancellation charge in full. To release Mr. Darling from his contract without requiring him to fulfill his obligations to our company would be unfair.

If the cancellation option does not work for Mr. Darling, our contract takeover option may be a possibility. Should Mr. Darling know of a qualified individual who is interested in home alarm services, Mr. Darling's contract can be transferred. We invite him to contact us at the number below to discuss this option at greater length.

Finally, in his correspondence, Mr. Darling expressed frustration regarding the permit fee associated with the alarm system. Because each locality has differing laws and ordinances regarding alarm systems, we recommend that our customers contact their local authorities. In the post-installation survey, we asked Mr. Darling, ''Some emergency services, localities, and dispatch agencies requires you to register your alarm system with them before they will respond to an alarm. Platinum Protection encourages you to contact agencies in your area to ensure all local laws are followed. Are you aware that you are required to contact these agencies?'' To this Mr. Darling responded, ''Yes.'' Had Mr. Darling contact his local agencies as we recommended, he would have been informed of the permit fee. Had the permit fee problem motivated Mr. Darling to cancel during his right of rescission period, we certainly would have honored his cancellation request. However, because we are only now learning about this issue, we are unable to honor cancellation on those grounds.

Thank you for contacting us to assist you in this matter. If we may be of any further assistance please do not hesitate to contact us at 1.888.507.7683.

Platinum Protection

(My rebuttal addressed to Better Business Bureau):

First off, let me just say that I have great admiration for Platinum Protections business model. The Platinum Protection sales team was the first to successfully sell me a product through door to door marketing and through this experience they will definitely be the last. I must offer a small token of gratitude to Platinum for providing me with a costly $2,500 lesson on "free systems" such that I "wont get fooled again". In fact, this experience has also convinced us of the value of caller ID so that we can head off telemarketing. All we have to worry about now are the ineffective "traditional marketing campaigns that utilize advertising through the mass media".

I appreciate the efforts that Platinum made to recite questions and answers to their "recorded survey" that proves that their contract is binding both orally and in writing. I now regret that I did not make efforts to videotape and/or record the sales presentation prior to the survey.

A video may have shown how the salesman refused to take my wifes "no" for an answer on Friday afternoon.

It would have shown how the salesman came back on Saturday to retool the sales pitch to me and convince me that my wife and neighbors were concerned for their safety in the neighborhood.

It would have shown the recognizable GE logo on the salesmans shirt that certainly helps to legitimize the critical first seconds of the sales pitch when most door to door salesman are greeted with a "not interested" reply. (If Im not mistaken, there was a recorded survey question making sure that I understood that Platinum Protection was not affiliated with GE. Im sure that I replied "yes".)

A video would have shown the salesman mention that our neighborhood was selected for a special promotion deal to receive "free systems" as long as we agreed to advertise their services with a permanent yard sign.

It would have shown my disbelief that our tucked away neighborhood was receiving such a generous gift as the salesman continued to put emphasis on the word "free".

It would have shown the salesman mentioning the names of all of our other neighbors who had agreed to help Platinum with their advertising over the past day.

It would have shown the Platinum salesman making a plea that no one in our special neighborhood should tell others that we received "free systems" because referrals were the way they made money because they would not receive "free systems".

It would have shown the dumbfounded and apologetic expression on the salesmans face when I failed to understand that "free" security systems rely on 24-hour monitoring services that are not "free". (I believe his words were, "Im sorry, I thought that everyone knew how security systems work." Boy, did I feel dumb at that moment.)

Finally, the video would have shown the salesman closing the sale and setting up an appointment for a future installation date only to have him return minutes later with an installation crew ready to go. Brilliant strategy. Without the product installed and functioning, I may have actually had time to study the terms of the contract and reconsider within our 3-day right of rescission period.

Ive been asked to provide a middle ground offer in an effort to resolve this dispute. There really doesnt seem to be any point in doing this. Platinum has built their defense with my signatures on the contract and my recorded "yes" responses as a secondary precaution for these situations. My only defense is that they caught me at a vulnerable time when I was preoccupied with a multitude of other more important issues. Maybe their recorded survey also contains noise of my three children in the background getting anxious and playing in the house while Dad is preoccupied with someone on his only day off from work. If you type in "Platinum Protection" on Google, "scam" is the 2^nd entry that comes up after "home security". Type in "Platinum Protection complaints" and there are 37,900 entries. If nothing else, I know that Im not alone with my regrettable decision this past summer.

Consider this case unresolved. Ill give Platinum a call in 2013 when Im close to 80% through with my contract and they can come by and pick up the box of "free equipment" that I have since uninstalled and stored away in the basement.