American Home Systems Reviews (%countItem)
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Description: Security Control Equipment & System Monitors
Address: 2655 Duke St, Alexandria, Virginia, United States, 22314-4508
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Burtell has an automatic renewal clause that renews our security monitoring service for another 3 years without any price negotiation or even an alert that the contract is coming to an end. In fact, the entire responsibility of contract cancellation is left to the consumer who has to provide a certified letter of cancellation 30 days in advance of the contract ending. We are now required to take on three year contract at the 2013 rate of $44 when the prices of monitoring have dropped to as low as $20. The FTC prohibits unfair and deceptive acts of practice. This evergreen clause is both unfair and deceptive.
To Whom It May Concern,
In response to the regards to consumer complaint #***, *** and *** entered into an agreement with our company on September 16 of 2013 for a three year term. As per the signed agreement, this agreement auto renews every three years. The current agreement was last renewed in September, 2016, and will go through September, 2019. The INITIAL TERM AND RENEWAL clause, paragraph 7, of this agreement was signed by both parties’ states: “The initial term shall commence on the date of this Agreement as provided in the box at the bottom of Page 1 hereof. This Agreement shall automatically be renewed for like periods unless either party, at least 30 days prior to the expiration of the original term or renewal term thereof, sends in writing, by certified mail, return receipt requested to the other party, a notice of intention not to renew this Agreement.” In the case of . & ***’s the period would be three years. *** contacted us on in January of 2018, requesting cancellation of her agreement. She was informed in writing of the details above and that the current term would not expire until September of 2019. In the correspondence to ***, there were multiple options presented which she would not be liable for payment of a closeout fee to include an option of reduction in her monthly cost from $44.00 to $39.00 a month. She did not seem to be amenable to any of these options. While *** may not agree with the signed agreement and the evergreen clause, if you look at the bottom of the first page on the signed agreement, she not only initiated the three year time period of the agreement, but she also initialed the approval of the verbiage in connection with what is written not only on the front, but also the reverse side of the contract. While it may be an issue now that it is being enforced, it was agreed upon. A COPY OF AGREEMENT IS ENCLOSED. . & ***’s are currently in a binding agreement that has been initialed and signed by her and her husband agreeing to the terms and conditions set forth on the front and reverse side of the attached agreement. If anything further is needed, we would be happy to comply.
To Whom It May Concern,
Again in response regards to consumer complaint #***, *** and *** counter offer. While *** may not agree with the evergreen clause and what they signed because is now being enforced, it was agreed upon by them. . & ***’s are currently in a binding agreement that has been initialed and signed by both her and her husband. We stand by all our options offered. If *** wants to accept the offer of a reduction in their monthly rate. We will reduce their monthly cost to $39.00 a month for the duration of their signed agreement with us, which is September 16, 2019, all though we are not legally obligated to. I commiserate with ***, but they have a legally binding signed agreement with us. We are willing to go above and beyond to give them a reduced discounted monthly rate because customer service is important to us.
As for *** comment about a service technician coming out as outlined in the signed agreement, under 1.B (2) says, “AMS agrees to provide a Lifetime Preventive Maintenance Warranty on all parts and labor for Subscriber’s alarm system (including batteries) with a visit by an AMS representative every twelve (12) months, as more particularly set forth below.” Which refers to 3.C. “SERVICE INCLUDED: Provided that Subscriber has chosen the warranty, service provided in paragraph 1(B), (1) or (2), the lifetime warranty shall include those warranties contained in any document connected with the purchase of the alarm system.” The customer did not chose a lifetime warranty with our company. So we would not come and provide a yearly service unless requested and paid for by the customer.
We are considering this mater closed.
Tell us why here...
[To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed as Answered]
Complaint: ***
I am rejecting this response because: The company is not coming with good faith to negotiate an agreement that is acceptable to both parties. They want us to continue with the contract that included a sneaky evergreen clause that they did not even bring to our attention after 3 years that it was coming for an automatic renewal. It suggests that they were hoping we would forget, like 90% of the customers who are complaining about them on ***.
As a result they have already extorted an additional 19 months of payment at a far higher rate than the market currently bears and they want us to continue to pay what they call a "discounted rate" of $39.00 which does not even come close to the current market rates which are much lower.
In regards to the Clause 1.B. It is our understanding that the NA relates to the terms set forth below and nothing to do with the preceding statement of a technician coming over every 12 months. If my interpretation was wrong, why did Michelle G inform us that the technician had to be requested when we asked her about the clause on why the company had not fulfilled its obligation.
Clearly, this company has no plans to meet us halfway, which we believe is fair that our contract is terminated on September 2018, which gives them already 2 out of the 3 years at a rate that is higher than normal market price.
It's being over 3 years now and this company call me with their automatic calling system 10 to 15 times a day about their product I have called and explained to them several times that I don't need it but still call me. Need them stop it or I will follow up with a law suit.
The calls the individual is receiving are not coming from ***/American Home Security. We do not use robo calling. The company that is calling you in not ***/American Home security. I sympathize with you, but again it is not our company that is contacting you. We only provide services to the Virginia, Maryland, and Washington, DC within a fifty mile radius from Washington, DC. I have attached a link that was posted by the Revdex.com on how to stop robo calls. https://www.Revdex.com.org/raleigh-durham/news-events/news-releases/2017/08/Revdex.com-offers-tips-for-stopping-scam-phone-calls/
I have been a customer of American Home Security since approximately 2009. In 2011 I added a service to my existing plan and was asked to sign another service agreement for a term of 5 years. On July 7 2017 I called and emailed to let them know that we are selling our home and that I wished to cancel my service with them. I received an reply email that if I wanted out of the agreement I would have to pay a fee of 1686 which represents the balance of a five year term. Apparently there was a clause in the contract that I signed in 2011 that said the contract automatically renews at 5 year terms and unless I would have given them 30 days notice of cancellation prior to the automatic renewal I would have to pay out the balance of the five year term. I was never given any notice of the renewal and when I mentioned this I was told that they are not required to give me notice. In talking with the owner he told me my choices are to pay the balance of the contract get the new purchaser of our home to take over our contract or move my service to my new home purchase. I feel that the automatic renewal of the contract in a five year term is deceitful and the fact that I was given no notice of the renewal only added to the deceit. In addition the three options that I was given feel like I am being strong armed into continuing service with this company. What had been a long term good working relationship with this company has been soured by this deceitful contract.
May 4, 2016
Revdex.com Commonwealth of Virginia
1411 K St. NW, 10th Floor Office of the Attorney General
Washington, D.C. 20005-3404 202 North Ninth St.
Richmond, Virginia 23219
Re: ***
To Whom It May Concern,
In response to your letter of July 10, 2017 concerning the above-mentioned individual, *** entered into this Agreement with our company in May of 2011 for a five year term. As per the signed agreement, this contract auto renews every five years. The current contract was next renewed in May 2016, and will go through May 2021. The INITIAL TERM AND RENEWAL clause, paragraph 7, of this contract signed by *** states: “The initial term shall commence on the date of this Agreement and be for a period of ten (10) years. This Agreement shall automatically be renewed for like periods unless either party, at least 30 days prior to the expiration of the original term or renewal term thereof, sends in writing, by certified mail, return receipt requested to the other party, a notice of intention not to renew this Agreement.” Of course in ***'s case the period would be five years. *** contacted us on Friday July 7, 2017, requesting cancellation of her contract. The same day she was informed in writing of the details above and that the current term would not expire until May of 2021. In the email to ***, there were other options presented under which she would not be liable to payment of a closeout fee. She did not seem to be amenable to any of these options. A COPY OF SAID CONTRACT IS ENCLOSED. Also for your reference, a copy of emails to *** have been enclosed.
*** is currently in a binding contract that has been initialed and signed by her agreeing to the terms and conditions set forth on the front and reverse side of the attached agreement.
If anything further is needed, we would be happy to comply.
American Home Systems / American Home Security
Tell us why here...
While *** may not agree with the contract, if you look at the bottom of the first page on signed agreement, she not only initiated the five year time period of the agreement, but she also initialed the approval of the verbiage in connection with what is written not only on the front, but also the reverse side of the contract. While it may be an issue now that it is being enforced, it was agreed upon.
As for the request to remove this policy from the contracts, the verbiage is standard in the industry and it will be found in other contracts that she will sign in the future. Again, there were options given, that are also detailed in the contract and capsulized in the email to ***. These options would negate paying the closeout fee, which seems to be the major concern. Unfortunately, *** did not want to take advantage of any of the four options mentioned in our written and verbal correspondence to her.
[To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed as Answered]
Complaint: ***
I am rejecting this response because:
Although it is true that I signed the original contract, I feel that it is an unfair business practice to have an automatic renewal, without notification, in five year terms. Just because something is true, it doesn't make it right. This business has no intention of doing anything differently or in changing their unfare business practices, which is the reason that I have reported this matter to the Revdex.com.
Regards