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Scam #1: Read the FINE print!

All alarm companies that require binding contracts have contracts for 5 reasons:

1. Limit their liability

2. Lock the customer into a multiple year contract

3. Sell the contract to a bigger company

4. Permission to raise rates

5. Get paid regardless if the system works or not

If you don’t pay, you can ruin your credit; you’re locked in.

Scam #2: Inadequate Protection (partial system)!

Don’t let a security company salesman trick you into settling for a false sense of security. The most important thing to most alarm companies is the contract, not your protection! Demand a security audit and make sure that ALL of your security options, including the contract and warranties, are full explained to you and produced in writing.

Scam #3: “FREE” Alarm System!

Here’s how it works, all alarm manufacturers sell an entry level system with low end devices and then expand to their line with higher end components that are ascetically pleasing on the eyes and easier to use. Guess which system you get for FREE? Guess which devices are used? Guess which ones are prone to false alarms at your expense? The FREE alarm system is the most popular scam because the alarm company knows that after the police department starts billing you for false alarms, you will have no choice but to upgrade to their higher priced systems.

Scam #4: False Alarms

In most cities in Orange County you get 3 free false alarms. After the third false alarm, your local police department will charge you a fee for each false alarm caused by your system. Some cities fees are as high as $500! Make sure that the alarm company you chose GUARANTEES the system parts and will pay for any false alarms caused by defective equipment.

Scam #5: Authorized Dealer Program That SELLS Your Contract!

Here’s how this works… these programs were designed by big alarm companies to get the small independent alarm companies to do their installation work. The independent installing alarm company then turns around and sells your contract to the big alarm companies for a cash price. Great for the independent alarm company, but bad for you. Where do you get answers for your alarm system?

Scam #6: Analog Phone Line (POS: Plain Old Security)!

If you ever switch your analog line to a digital line, your analog security system will most likely stop sending signals to the central station. Always request a security system that monitors the phone line for interruption in the service and make sure that the alarm company explains to you the cost of communicating with a cellular back up.

Scam #7: Analog Lines Can Easily Be Defeated!

Most phone lines’ D-Marks (termination location) are located within easy to reach places for repairmen and can easily be defeated with a simple household screwdriver. Make sure your alarm system monitors the phone line and triggers an audible alarm in the event of interruption in service. For improved security, request cellular back-up in the even the phone line is cut.

Scam #8: Always Separate Your Alarm Installation and Monitoring Contracts!

Always separate your alarm installation contract and your alarm monitoring contract! One contract is for product and the other is for service. By separating the two, you can choose any alarm company to monitor your alarm system if the installing company is not providing excellent service.

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Source by Michael K Houser