Vivint Illegally Opened "Hundreds of Thousands" of Accounts, Says FTC
Vivint illegally opened "hundreds of thousands of accounts" by stealing identities so that customers who could not qualify for product financing were able to buy Vivint's offering, according to the US government's FTC.
In this report, IPVM examines the complaint against Vivint as well as Vivint's punishment for defrauding consumers.
Note, this action is separate and additional to the January 2021 Department of Justice action against Vivint for defrauding customers, which we cover at the end of this report as well.
US *** ***** ********* ******* ******
** ***** **, ****, *** ****** States ********** ** ******* (***) ***** a**-**** **************** ****** ** *** ******** ***** of ****:
Vivint ****** "******** ** *********" ** ******** ************ *** *********** *********
****** ****** "******** ** *********" ** accounts ********* ** ** ******* ** close *****, *** ***'* ********* ****. If ********* ********* **** *** ****** scores **** ****** ** **** ****** checks ** ******* ****** *********, ***** representatives ***** **** ****** ****** **** similar ***** ** *** ********* ******** to **** *** ******* *****. ***** times, *** ***** *** ***** *** a ******** ** *** ********* ******** or * ****** ****** **** * higher ****** ***** ** * **-******, without *** ********* ** *** ********.
****** "****** **** *.* ******* ********* in *** ** *** ******", ** "hundreds ** *********" ** ************ ****** accounts ***** * *********** ******* ** Vivint's ******** *** ******** ******* **** Commissioner ***** *********** **** "* ****" *** "*****":
*****, *** ******* ***** ********** ** seeking ** ******** ****** ***** **** (NYSE: ****) *** *multi-year **** involving running credit checks on unsuspecting individuals to close sales to prospective customers. [emphasis added]
****** ****** ******'* ******* "********** *******" and "* ******* ** ********* *****":
****** ******* ** * **** **fraudulent ******* to help close sales. [emphasis added]
**** ********... *** * **********pattern ** ********* ***** that Vivint’s leadership did little to stop. [emphasis added]
Unknowing ******* ** *** **** *** ****
******* ***** ******** **** *** ******** opened ** *** ********'* ****, ********* victims **** **** ********* ** **** collectors *** ********** ** ******** **** did *** **** ****** ** ****. Their ********** **** ****** ** ****** sales *************** ** **** ********* ******** for ********* *** ***** *** ********** qualify ******* ***** ****** ****** **** too ***.
Illegal ****** *: "*****-******"
*** ******* ****** ** ******* *********** customers *** ********* ** "*****-******," ** which ****** ***** **** * ****** with * ******* ** *** **** name ** *** *********** ******** *** use **** ********* ******'* ****** ***** instead ** ******* ** *******. ****** would **** * ********* ***** ****** and ***** ***** ******* ** * "previous *******" *** *** *********** ******** in ****** *****, ******'* *** *********** app **** ** **** ****** ******* from ******** ****** ******** (****). *** app ***** **-*** *** ****** ***** and, *******, **** *** ********* ******'* credit *****. *** ********** *********** ******** is *** ********* *** ******* ******* else's ****** *****.
Illegal ****** *: ****** "************* **-*******"
*** ***** ******* ****** ********* ********* account ******* ***** ****** ****** **** did *** ******** ****** ** ****, but *******, *** ************ ** ****** unknowing **-******* ** *** *******. ********* to *** *********, ***** *************** ***** sometimes *** *** *********** ******** *** the **** ** ******* **** **** who ***** *******, **** * ********, and **** *** ******* ***** **** relative's ****** *****. *** *** ********* that *** ******** *** *** ***** for ********** ** ** **:
*** *** ***** ****obtain * ****** ****** *** **** ********** ******* **********, add their address into “previous address” and thereby qualify the primary account holder. [emphasis added]
** ***** *****, *** ***** *** would *** * **-****** *** *** customer **** *** **** ****, *** the ************** ***** *** **** *** credit *****.
Unknowing ******* ****** **** ** **** **********
***** ******* **** **** ****** **** to **** ********** ** *** ******** defaulted ** *** ********* *********:
** *** ***** **** * ******** registered ***** **** ***** ********* ********** defaulted ** *** ****** *******, *** address ** *** ********* ********** **** the **** ** ******* **** ** the ************* **-****** ******* **** ****** Genie ** * “******** *******” ***** be ****** ** ** ******’* **** buyer,thus *********** *** ******** **********’* ****** ******** and causing **** ** ** ******* ** **** **********. [emphasis added]
******** ********* **** ********** ** *** FTC **** **** **** ********* ** collection ******** *** ********** ** * Vivint ******* **** ****** **** *** never **** ***** ** *** *******:
********* **** ********** ** *** *** and *** ****** ******** ****** ******** Vivint ** ******** *****, **** ******* consumers ********** **** ***** ********—*** ******** learns **** * ********** ****** **** they **** ********* ** * ****** account,but **** *** ***** **** ***** ** ******, **** **** **** ** ******* **** *** *******. [emphasis added]
Record-Setting $** ******* ******* ** ***
****** **** *** $** ******* *** to *** *** *** *** ******* practices.********* ** *** *** ***** *******, **** ** * ******-******* **** for *** *** **** ****** ********* Act (****) ****. *************** ********* **** ********* ******** ******* (such ** ****** ***********) ******* * permissible *******. *** $** ******* **** is ***** **** *** *****, * $15 ******* ***** *******:
*** ***** $* ******* **** ** towards * "******** ****" **** **** be **** *** "******** *******" ** compensate ******* ******** ** ******'* *******:
Company **** ***** ******* *********, ********* ** ***** ****
****** **** ***** ***** ******* ********* as ***** ** **** *** ********* to ***** **** *** *****, *** complaint *******. *** *******, ****** ***** "hundreds ** ***** ****************** ********** ******* ** ***** ****** and ************* **-*******" ** ***** **** but ***** **** ** *** **** people **** **** * **** *****:
** ***** ****, ************************ ** ***** ***************for ********** ******* ** ***** ****** *** ************* **-*******. Vivint later ******* some of these same sales representatives. [emphasis added]
***** ****** ***** ** ********* ******** after *** ****** *** **********, *** complaint ****** ******'* ******* "******" *** failed ** "************ **** *** *******". Further, ***** ** ***** ****, ****** employees *** ****** ******** ***** ***** reps *** ********* ** ******* ******* practices. *******, ****** **** "****** ********* the ***** ********* ***** ***************."
FTC ********** ********** ******** *** *** ***** **********
***** **** *** $** ******* ****, the *** *** **** ********** ********* compliance ********, *********, *** *** ***** assessment *** ******. **** ** ***** programs **** **** *** ** *****. The ******** ******** *** ******** ** the ***'***-**** "********** ***** *** ********* ********** and ***** ******* ********":
*** ******** *******, *** *** *** limited **:
- ******** ******* **** ***** - *********** for *********** ***** ***** **** ** debt ****** ***** **** ** ********** or ************, ************* ** *** ***** any ******** ** ********** ************ *****.
- ******** ********** ******* - ******** "**********" to **** **** **** ****** ** consumer ******* **** *********** *******, ******** and ********** *** *********, ************ ** internal "****** *******" *** ********* ** report "***** ********* ******" *** "********** of *** ****".
- *****-***** ********** - * "*********, *********, independent *****-***** ************" **** ****** ******'* adherence ** *** ********** ** **** order ***** * **** *** *** next ** *****.
****** *** ******* ****** ** **** order. **** *** ***** ** ******** by *** *****, "*** ********** ***** will *** *** ******* ********** ******* the *******."
FTC ************: ********* ******* "****** ** ** **** *********"
*** ************ ***** ************ * *********** *** ****, ******* *** *** for ********* "****** ****" *** *** victims **** ******. *******, ************ ****** stated **** ** ** "**** *********" of ***** ********** *****, ******* **** they **** **** ***** ***********:
*******, * ** **** ********* ** other ********** *****, **** ** ********* independent *********** *** *** *********** ** a ***** ********** *******. ***** ** some *************, ***** ******** *** ** useful,in **** ******, **** **** ****** ******** ********* ****** **** ******* *** ********** ************ that led to the fraud. [emphasis added]
*******, ****** ********* "***** ******** **********" including ********* ********* ************, ******** *** salesforce's ************ *********, *** **** ********* of ******** *** **** *********** ** controlling *** *****:
***** ******** ********** *** ****** ** be **** ********* *** **** ** more ********** ******.Clawing **** ********* ************ and requiring ******* ** ********* ************ *** *** ***** ***** are also well suited to shift leadership incentives to guard against fraud. In many cases, other ******* ** ********* ********** *** ***********. For example, to address Wells Fargo’s failures in its fake accounts scandal, financial regulators sought *** ******** ********** ** ****** ******** *** ******* *** ***** ** ******. [emphasis added]
Vivint ********** ****** **** *****
******, **** ********** ****** **** ********** may ** ********* ** **** ** Vivint's ******* *******, ********** ** ***** of ******'* ******** ******* **** *** law. ****** *** *** ********** ****** with ********** **** ********* ************ *** consumers ** *** ****. *** *******, Vivint**** *** *** $*.* ******* ** January ******* ******* ***** ********** ** ********* insured ********* ************ ** ***** **** were ***** ***** *** ***** ** cover ******* ********* ******** **** **** supposed ** ** **** ** *********.
*******, ****** ** ********* ** ** ongoing ******* ******* ***, ** ***** the ******* ** ***** **** *** allowing *** ***** ****** ** ******* to ** *** ******, ********** ********* to ****** **** *** ****** *******. Although ****** ******* **** *** ***$** ********* ******* **** **** **** *********, ADT ************ **************** ****** ** ****** **, ****, alleging ******'* ********* ********* **** ***** stopped, ******* *** ******** **********.
** ****, *******, ** ********** ** financial *********** *** **** ********** ** stop ****** **** ********** ********* ********** the ****** ******.
Vivint *******
****** ********* ** ****'* ******* *** comment, ******:
** *** ******* ** **** ******** this ****** ******* ** ******* ********** practices. ** *** ******* ***** ***** before *** *** ***** *** ****** to ********** *** ********** ********, *** will ******** ** **** **** * focus ***** *******. ** *** ****** committed ** ********* **** ********* *** delivering *********** ******* ** *** *********.
"* ****** *** * **** ***** call ****** ** **** *** * couple ** *****"
*** *** *******; *** **** ****?
* ********* * ******* ***** ********* at *** ****** ***** ******** ******. At *** **** ***** *** * big **** *** *.*.* (******* ****** Products) ***** *** "*********" ** ****** additional ******* ** ******* ******** ********. Since *** *********** **** ******** *********** for ****, ** ******** *** *** often **** **** ******* ***** ** added ** **** ************ ********'* ******* and **** ***** **** ***** ** noticed ** *** ******** ******* ***** bill, ** ***** **** ******* ******* for * *** ******. ********** ** was * *** *******, *** * do *** ****** ** ******* *** media.
**** *** **** ***** ** ***** the **** ** **** ******** **** in *** **'*.
"**** *** **** ***** ** ***** the **** ** **** ******** **** in *** **'*. "
***.......** ** ***, ****, ********** ** your *******?
** ****** **** ** ***. * am ****** ******* *** **** **** has **** ***** ** *** ***** some ****. ** ********* ** *** unhelpful *** ** *** **** **** when *** ******* **** ****** ***** are ******** ****** *** ***** ***** the **** *****. **'* *** ******* of * *** **** ***** ******.
*** ******** *** ***** **** * branch ******* ** **** *** *** branch. *** **** **** **** *** a ****** ** ***** *** ********* on *** ***** ******* **** ****** makes * *** ** ***** **** walks ****.
**********… **** ******/**** ********, **** *** years *** ********* ** ****** *** complaints ******* ******, **** **** *** fuel ** *** ****** **** **** to “****** ** *********” *** ******. They ******* **** ******* ** ****, but **** ******** *** *** ****** ADT “******* ***” *****-******; *** *** bankruptcy ** ***********; *** *** ****-******* legal ***** ** ******* **** ******** to ****** ********** ***** **** ****** and *** **** ***** ***** ****************…. could ** *** ************* ** **** the ******* ****** ******* (**-****** ****** response ** ******** ** ******* ******** deterrent ***** *********). **** ** ***** the ****** ** *** *** *** MIY ***********; *** *** ******* ** private ******** **** ** ******** *** attrition *** ****** *** ***** ** RMR **** *** ********* ******* ** investors. *************, **** ** ******** ********** still **** ** “**** **** ****** ******* ******” (***** words).
*********** **: *** *****; ******* ******** Group
*** *** **** ******* ***, *** question ****** ** *** ****'* *** officers **** ******, **** *** ***** stop *** ** ***** ***** ******* the ***** ****'* ***** ** *** profit **** ****.
**** **** ***** ***** **** ** security ********* *** *** *** *** industry *** **** ******** *** ******* .
"*** *** ****-******* ***** ***** ** Georgia **** ******** ** ****** ********** firms **** ****** *** *** **** their ***** ****************…."
**** *** *** ********* ** ** "the ****-******* ***** ***** ** ******* that ******** ** ****** ********** ***** like ****** *** *** **** ***** legal ****************…."
* **** ** ** *** *** new *** **** ** ****** *** signed ** *** ******** **** ******* municipalities **** ****** ***** ********* *** false ****** ****** **** *** ********. That ** * ***** ********** *** the ****** ********** ******** **** *** hardly ****** * ********** *** *** big ****.
*** *** *******, ** ** **** for ******** ** *** ********… *** bad *** *** *********** *** ***** communities, **** * ***, *** ******* for *** “********”. *****, ****** **** you *** ** ******** “*******”, ** you **** *** “******/******* ***********” ** a ******** **** ** **** *** business ******. *** *** *********** ** GA **** **** ***** ************** ****** or ******** *** */* ***********, **** bad ******** ****. ** *** ******* look **** *** *****, ******* ***** from ********** ***** *** ********* ***** response **** *** *** ****** ********, B&F/ ********* & **** (************* **** or ** ********). *** *** ** legislation ** ******* ** *** ***** Springs ********* **** **** *** ******* alarm-site ** *********** *** ***** ***** fees, *** *** ******* ******** ********** firm **** ** **** ** ***** the ******* *** ********** *** ********. The ******** ******** *** **********, ********* the ******** ***** *********** ****, **** the **** “*****” ** ******** *********** that *** ********** ****** ** *** the ***********, **** ****** “***** *** signals”. *** ***** **** *** *** industry *** ***** ********** ****** ** offload ***** ******** ************** ** *** city *** ******* ****** *********, ** describing ***** **** ** * ****** relay *******.
*** *** **** ** *** *** legislation ** **** ** ****** *******. *** *******, *** ******-********** ******* of *** ***** ******** ** *** highly ********** *** *********. ***** **** ADT **** **** ***** ************** *** millions ** *****-*****, ******* ***** **** RapidResponse **** **** **** ************** *** millions ** ***** *****. ********** ** deeply *******. ** ******* “******** ********” will ***** *** **** ******** ****** response, *** ****** **** *** ****** value. *******, ********* ******* ********* ** a “***** *******” **** *** **** attrition *** *** ****** ***** ***** collapse. ********** ***** ******** ***** ** replaced ** *** ******** *** & MIY ****, ******* *** *** *********** barriers ** *****. * *** ****** of ******* ******** **** ** ******** by “******* ********”.
******: *** *****; ******* ******** *****
***** *** **** ******* **** *** perpetrated ** ******** **** *** ***** at ***** ********** ****** *** ******* processes ******** ** ******** *** ******* off **** *******.
**** ** *** *** ** *****.
** **** **** **** * ****** is ** **** ****** ******* * bad ****.
**** ** **** *****...**** ******** ***** more ***********. **** ** ****** ** that **'* ** ********* ** ** industry ***** ** ******* ******. ****** and ********* *** ***** ***** ****. So **** ** *** ********** **** has **** **** ********* ** *** last ** ** ** ***** *** ultimately **** ******* ** **** **; only **** ** ***** ** * species. *** ***** ****** **** *** people *** ***** **** ****? ******** to **** **** **..** ***/** ******** to ** *** ***** *** ******. Now *** **** ** *** ******** why ****** **** ****** ** ******** a **** ****** ****** **** ***** that *** ******** ****** **** *** any ***** ******** ** *** *** credit ** *** **** ** *** have * **** *******. ***, ** an ********** **** ** ** **** and *** ****** ******'* ** ** she ** ****** ********* **** **** or * ******** ****** ** * felony ** ***********? *** * **** and *** *** **** *** ******* somebody ****'* **** ** ****** * good ******'* **** * ********* **** financially? ****** ***** ** ****** ** each *** **** **; **********, *** technology *** ***** ********* **** **** us ** * ***** ***** * reset *** ** ****** *** ** cease ** ***** *** ***** ****. We're ******* *****. ************* **** *** go; ** **** **** **********. ***** sooner **** *****.
"** ****, *******, ** ********** ** financial *********** *** **** ********** ** stop ****** **** ********** ********* ********** the ****** ******."
"*** ****, *** *** ***** ********* be ****** ** *******?". * ***'* know, ***** *** ********* ***'*, ***'*, CIO's, ***'*..*** *** *** * ** 3 ***** ** *** *********, ** directly ***** ******* ********; ***** **** a ****** **** ** ********** ** boards **** ***** ******* ** ***** these ******** ** ***** *** ** continue. ** ****** **** ** *** assuming **** *** **********'* **** ***** be ************* ** *********** *** *** they, ********** *******, * *******. ******* lies *** ***...
******…….****……***………. ** ****** *** **** ***** the **** *** *******, ***** *** always **** ***** ********.
*** ***’* ****** **** ******** * company ** ******* ****** ******* ** the ****?????
* ******* * ***** **** ** the ***** **** ****** *** ******** model ** **** *********** *** *** upfront ****. ** ********** *** ***** people ** *** ***** ***** ******* to *********** “**** *** ***** *** run.” **** *** ********** *** ******** knowingly **** * ***** *** ** the ********* ******* ***** ********* ***** good *** ***** ****** *** *******.
********** ** **** * ******* ****** that ************ ***** ****** ********* *** keeps *** ****** * ********** **** place ** ******* ******** ** * company *** ********.
* *****-********* ***** **** *** ***** paragraph...
*** ******* ** ** ****** * little *** ** *** ****** ********* (no ******* ********) : )
* **** ***. *** ****** ********* is ** ******** ** *** **** of *** *****. **** ** **** makes ******* * ******* ******* ** that ****** **** ***** *** ******* to ****** ***** ***** ** ******** businesses, *** ********* *** ******* ** spend ***** *****, ******* **’* ********** safe ******** ** *** ***** ******* where ********** **** ********* *********. * say “*********” ******* * ***’* **** to ***** ***** ** ** ********** in *******, *** ********** ********, ** is * **** ***** ** ****** your ****** ******* ** *** ****** and ******** ******** ** *** **** dwindling ************.
**** ********* ************ **** ** *****. : )
** ***** ** **** *** **** Meetup **** *** ********* *** ** before ***** * ***** **** ** tip * * ***** *** **** about **** ****** **** *** *** other **** *******.
**** **** * *** ** ***** and ***** **** ***** **** *** are **** ** ***** ** *** 'motives' ** ****** *** ** ***** in '*****'. ; )
*** **** ** ****** * **** bump ***********. **** *** $*** ******* in ****. *** ***** ******? ***** 10 ****? **** **** **** ****** the ******** *** *** ** **** even ***** ****. **** ** * joke ** ****. ** *** **** lose * *****, * ******* ** get ***** ******. ****** *** * single ******** ** ****.
*** **** *** ********** ******** ******** is ***** **** **** *******, *** ever ***** *** ***** **** ** our *** ****** **** ** *** mid ***, *** ***** ******* *** been **** ** ******** ******* ***** to ** **********. ***** ** ***** a **** ****** ** ******* *** companies **** **** *** **** ***** of ******** ***** *** *****, *** it *** **** * ********** ** our ********** ** ******* ***** *** property **** ***** **** ********* ** serve * *&*/*********** ****** *** ***** own ******** *******. **** ******** ******** technology ************ ********, ******** ***** ** and ****** ***** ****** ** **** thinkers ******** **...
*** ****.
* ****** *** * **** ***** call ****** ** **** *** * couple ** *****. ** **** ********** to ** *** **** *****. ** the ******* ****** *** *** **** the ****** ***** ** *** **** a ****** ***** ** ***** ** encouraged ** *** ******** ****’* ****** Security ****** ** *** *****.