Vivint Illegally Opened "Hundreds of Thousands" of Accounts, Says FTC

By Isabella Cheng, Published May 03, 2021, 09:41am EDT

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.

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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 *** ***** ********* ******* ******

** ***** **, ****, the ****** ****** ********** of ******* (***) ***** a**-**** **************** ****** ** *** District ***** ** ****:

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Vivint ****** "******** ** *********" ** ******** ************ *** *********** *********

****** ****** "******** ** thousands" ** ******** ******** in ** ******* ** close *****, *** ***'* complaint ****. ** ********* customers **** *** ****** scores **** ****** ** pass ****** ****** ** finance ****** *********, ***** representatives ***** **** ****** people **** ******* ***** to *** ********* ******** to **** *** ******* under. ***** *****, *** sales *** ***** *** a ******** ** *** potential ******** ** * random ****** **** * higher ****** ***** ** a **-******, ******* *** knowledge ** *** ********.

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****** "****** **** *.* million ********* ** *** US *** ******", ** "hundreds ** *********" ** fraudulently ****** ******** ***** a *********** ******* ** Vivint's ******** *** ******** through **** ************ ***** Chopra***** **** "* ****" and "*****":

*****, *** ******* ***** Commission ** ******* ** sanction ****** ***** **** (NYSE: ****) *** *multi-year **** involving running credit checks on unsuspecting individuals to close sales to prospective customers. [emphasis added]

****** ****** ******'* ******* "fraudulent *******" *** "* pattern ** ********* *****":

****** ******* ** * host **fraudulent ******* to help close sales. [emphasis added]

**** ********... *** * disturbingpattern ** ********* ***** that Vivint’s leadership did little to stop. [emphasis added]

Unknowing ******* ** *** **** *** ****

******* ***** ******** **** not ******** ****** ** the ********'* ****, ********* victims **** **** ********* by **** ********** *** defaulting ** ******** **** did *** **** ****** to ****. ***** ********** were ****** ** ****** sales *************** ** **** financing ******** *** ********* who ***** *** ********** qualify ******* ***** ****** scores **** *** ***.

Illegal ****** *: "*****-******"

*** ******* ****** ** qualify *********** ********* *** financing ** "*****-******," ** which ****** ***** **** a ****** **** * similar ** *** **** name ** *** *********** customer *** *** **** unknowing ******'* ****** ***** instead ** ******* ** account. ****** ***** **** a ********* ***** ****** and ***** ***** ******* as * "******** *******" for *** *********** ******** in ****** *****, ******'* own *********** *** **** to **** ****** ******* from ******** ****** ******** (CRAs). *** *** ***** re-run *** ****** ***** and, *******, **** *** unknowing ******'* ****** *****. The ********** *********** ******** is *** ********* *** through ******* ****'* ****** score.

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Illegal ****** *: ****** "************* **-*******"

*** ***** ******* ****** similarly ********* ******* ******* using ****** ****** **** did *** ******** ****** to ****, *** *******, was ************ ** ****** unknowing **-******* ** *** account. ********* ** *** complaint, ***** *************** ***** sometimes *** *** *********** customer *** *** **** of ******* **** **** who ***** *******, **** a ********, *** **** the ******* ***** **** relative's ****** *****. *** FTC ********* **** *** relative *** *** ***** for ********** ** ** so:

*** *** ***** ****obtain * ****** ****** *** **** ********** ******* **********, add their address into “previous address” and thereby qualify the primary account holder. [emphasis added]

** ***** *****, *** sales *** ***** *** a **-****** *** *** customer **** *** **** know, *** *** ************** knows *** **** *** credit *****.

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Unknowing ******* ****** **** ** **** **********

***** ******* **** **** turned **** ** **** collectors ** *** ******** defaulted ** *** ********* agreement:

** *** ***** **** a ******** ********** ***** such ***** ********* ********** defaulted ** *** ****** account, *** ******* ** the ********* ********** **** the **** ** ******* name ** *** ************* co-signer ******* **** ****** Genie ** * “******** address” ***** ** ****** on ** ******’* **** buyer,thus *********** *** ******** **********’* ****** ******** and causing **** ** ** ******* ** **** **********. [emphasis added]

******** ********* **** ********** to *** *** **** they **** ********* ** collection ******** *** ********** on * ****** ******* even ****** **** *** never **** ***** ** the *******:

********* **** ********** ** the *** *** *** Better ******** ****** ******** Vivint ** ******** *****, with ******* ********* ********** this ***** ********—*** ******** learns **** * ********** agency **** **** **** defaulted ** * ****** account,but **** *** ***** **** ***** ** ******, **** **** **** ** ******* **** *** *******. [emphasis added]

Record-Setting $** ******* ******* ** ***

****** **** *** $** million *** ** *** FTC *** *** ******* practices.********* ** *** *** press *******, **** ** * record-setting **** *** *** FTC **** ****** ********* Act (****) ****. *************** ********* **** ********* consumer ******* (**** ** credit ***********) ******* * permissible *******. *** $** million **** ** ***** into *** *****, * $15 ******* ***** *******:

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*** ***** $* ******* will ** ******* * "consumer ****" **** **** be **** *** "******** redress" ** ********** ******* affected ** ******'* *******:

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Company **** ***** ******* *********, ********* ** ***** ****

****** **** ***** ***** illegal ********* ** ***** as **** *** ********* to ***** **** *** years, *** ********* *******. For *******, ****** ***** "hundreds ** ***** ****************** ********** ******* ** white ****** *** ************* co-signers" ** ***** **** but ***** **** ** the **** ****** **** just * **** *****:

** ***** ****, ************************ ** ***** ***************for ********** ******* ** ***** ****** *** ************* **-*******. Vivint later ******* some of these same sales representatives. [emphasis added]

***** ****** ***** ** implement ******** ***** *** scheme *** **********, *** complaint ****** ******'* ******* "meager" *** ****** ** "meaningfully **** *** *******". Further, ***** ** ***** 2017, ****** ********* *** warned ******** ***** ***** reps *** ********* ** conduct ******* *********. *******, Vivint **** "****** ********* the ***** ********* ***** representatives."

FTC ********** ********** ******** *** *** ***** **********

***** **** *** $** million ****, *** *** has **** ********** ********* compliance ********, *********, *** 3rd ***** ********** *** Vivint. **** ** ***** programs **** **** *** 20 *****. *** ******** programs *** ******** ** the ***'***-**** "********** ***** *** Permanent ********** *** ***** Penalty ********":

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*** ******** *******, *** are *** ******* **:

  • ******** ******* **** ***** - *********** *** *********** which ***** **** ** debt ****** ***** **** is ********** ** ************, communicating ** *** ***** any ******** ** ********** illegitimate *****.
  • ******** ********** ******* - creating "**********" ** **** sure **** ****** ** consumer ******* **** *********** purpose, ******** *** ********** for *********, ************ ** internal "****** *******" *** employees ** ****** "***** integrity ******" *** "********** of *** ****".
  • *****-***** ********** - * "qualified, *********, *********** *****-***** professional" **** ****** ******'* adherence ** *** ********** on **** ***** ***** a **** *** *** next ** *****.

****** *** ******* ****** to **** *****. **** the ***** ** ******** by *** *****, "*** Stipulated ***** **** *** all ******* ********** ******* the *******."

FTC ************: ********* ******* "****** ** ** **** *********"

*** ************ ***** ************ * *********** *** ****, ******* the *** *** ********* "actual ****" *** *** victims **** ******. *******, Commissioner ****** ****** **** he ** "**** *********" of ***** ********** *****, fearing **** **** **** just ***** ***********:

*******, * ** **** skeptical ** ***** ********** terms, **** ** ********* independent *********** *** *** appointment ** * ***** compliance *******. ***** ** some *************, ***** ******** can ** ******,in **** ******, **** **** ****** ******** ********* ****** **** ******* *** ********** ************ that led to the fraud. [emphasis added]

*******, ****** ********* "***** remedial **********" ********* ********* executive ************, ******** *** salesforce's ************ *********, *** even ********* ** ******** who **** *********** ** controlling *** *****:

***** ******** ********** *** likely ** ** **** effective *** **** ** 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 ********** ****** **** *****

******, **** ********** ****** from ********** *** ** necessary ** **** ** Vivint's ******* *******, ********** in ***** ** ******'* previous ******* **** *** law. ****** *** *** continuous ****** **** ********** both ********* ************ *** consumers ** *** ****. For *******, ********** *** *** $*.* million ** ******* ******* ******* ***** ********** to ********* ******* ********* institutions ** ***** **** were ***** ***** *** funds ** ***** ******* financing ******** **** **** supposed ** ** **** by *********.

*******, ****** ** ********* in ** ******* ******* against ***, ** ***** the ******* ** ***** sued *** ******** *** sales ****** ** ******* to ** *** ******, misleading ********* ** ****** over *** ****** *******. Although ****** ******* **** ADT ***$** ********* ******* **** **** this *********, *** ************ **************** ****** ** ****** 14, ****, ******** ******'* deceptive ********* **** ***** stopped, ******* *** ******** settlement.

** ****, *******, ** punishment ** ********* *********** has **** ********** ** stop ****** **** ********** customers ********** *** ****** States.

Vivint *******

****** ********* ** ****'* request *** *******, ******:

** *** ******* ** have ******** **** ****** related ** ******* ********** practices. ** *** ******* taken ***** ****** *** FTC ***** *** ****** to ********** *** ********** policies, *** **** ******** to **** **** * focus ***** *******. ** are ****** ********* ** operating **** ********* *** delivering *********** ******* ** our *********.

Comments (21)

* ****** *** * very ***** **** ****** in **** *** * couple ** *****. ** were ********** ** ** the **** *****. ** the ******* ****** *** not **** *** ****** score ** *** **** a ****** ***** ** would ** ********** ** use ******** ****’* ****** Security ****** ** *** house.

Agree
Disagree
Informative: 8
Unhelpful
Funny

"* ****** *** * very ***** **** ****** in **** *** * couple ** *****"

*** *** *******; *** were ****?

Agree: 5
Disagree
Informative
Unhelpful
Funny

* ********* * ******* thing ********* ** *** mobile ***** ******** ******. At *** **** ***** was * *** **** for *.*.* (******* ****** Products) ***** *** "*********" by ****** ********** ******* to ******* ******** ********. Since *** *********** **** directly *********** *** ****, it ******** *** *** often **** **** ******* would ** ***** ** some ************ ********'* ******* and **** ***** **** would ** ******* ** the ******** ******* ***** bill, ** ***** **** slipped ******* *** * few ******. ********** ** was * *** *******, but * ** *** recall ** ******* *** media.

Agree
Disagree
Informative: 2
Unhelpful
Funny

**** *** **** ***** on ***** *** **** of **** ******** **** in *** **'*.

Agree: 3
Disagree
Informative
Unhelpful: 3
Funny

"**** *** **** ***** on ***** *** **** of **** ******** **** in *** **'*. "

***.......** ** ***, ****, acceptable ** **** *******?

Agree
Disagree
Informative
Unhelpful
Funny

** ****** **** ** bad. * ** ****** stating *** **** **** has **** ***** ** for ***** **** ****. My ********* ** *** unhelpful *** ** *** fact **** **** *** company **** ****** ***** are ******** ****** *** there ***** *** **** thing. **'* *** ******* of * *** **** quick ******.

*** ******** *** ***** have * ****** ******* do **** *** *** branch. *** **** **** this *** * ****** of ***** *** ********* on *** ***** ******* that ****** ***** * ton ** ***** **** walks ****.

Agree: 1
Disagree
Informative
Unhelpful
Funny

**********… **** ******/**** ********, plus *** ***** *** thousands ** ****** *** complaints ******* ******, **** more *** **** ** the ****** **** **** to “****** ** *********” the ******. **** ******* have ******* ** ****, but **** ******** *** the ****** *** “******* tom” *****-******; *** *** bankruptcy ** ***********; *** the ****-******* ***** ***** in ******* **** ******** to ****** ********** ***** like ****** *** *** from ***** ***** ****************…. could ** *** ************* to **** *** ******* public ******* (**-****** ****** response ** ******** ** private ******** ********* ***** customers). **** ** ***** the ****** ** *** DIY *** *** ***********; and *** ******* ** private ******** **** ** destroys *** ********* *** market *** ***** ** RMR **** *** ********* decades ** *********. *************, much ** ******** ********** still **** ** “**** **** ****** ******* decade” (***** *****).

*********** **: *** *****; Support ******** *****

Agree: 2
Disagree: 2
Informative: 2
Unhelpful
Funny

*** *** **** ******* Lee, *** ******** ****** is *** ****'* *** officers **** ******, **** are ***** **** *** of ***** ***** ******* the ***** ****'* ***** to *** ****** **** them.

**** **** ***** ***** type ** ******** ********* are *** *** *** industry *** **** ******** DIY ******* .

Agree
Disagree
Informative
Unhelpful
Funny

"*** *** ****-******* ***** issue ** ******* **** attempts ** ****** ********** firms **** ****** *** ADT **** ***** ***** responsibilities…."

**** *** *** ********* to ** "*** ****-******* legal ***** ** ******* that ******** ** ****** monitoring ***** **** ****** and *** **** ***** legal ****************…."

* **** ** ** not *** *** *** that ** ****** *** signed ** *** ******** that ******* ************** **** fining ***** ********* *** false ****** ****** **** the ********. **** ** a ***** ********** *** the ****** ********** ******** that *** ****** ****** a ********** *** *** big ****.

Agree
Disagree
Informative
Unhelpful
Funny

*** *** *******, ** is **** *** ******** of *** ********… *** bad *** *** *********** and ***** ***********, **** a ***, *** ******* for *** “********”. *****, sounds **** *** *** an ******** “*******”, ** you **** *** “******/******* Partnership” ** * ******** part ** **** *** business ******. *** *** legislation ** ** **** help ***** ************** ****** or ******** *** */* Partnership, **** *** ******** wide. ** *** ******* look **** *** *****, wherein ***** **** ********** firms *** ********* ***** response **** *** *** lowest ********, *&*/ ********* & **** (************* **** or ** ********). *** new ** *********** ** focused ** *** ***** Springs ********* **** **** the ******* *****-**** ** responsible *** ***** ***** fees, *** *** ******* licensed ********** **** **** is **** ** ***** the ******* *** ********** the ********. *** ******** sponsors *** **********, ********* the ******** ***** *********** SIAC, **** *** **** “relay” ** ******** *********** that *** ********** ****** is *** *** ***********, they ****** “***** *** signals”. *** ***** **** for *** ******** *** their ********** ****** ** offload ***** ******** ************** to *** **** *** citizen ****** *********, ** describing ***** **** ** a ****** ***** *******.

*** *** **** ** the *** *********** ** that ** ****** *******. *** *******, *** remote-monitoring ******* ** *** alarm ******** ** *** highly ********** *** *********. Firms **** *** **** near ***** ************** *** millions ** *****-*****, ******* firms **** ************* **** near **** ************** *** millions ** ***** *****. Leadership ** ****** *******. We ******* “******** ********” will ***** *** **** priority ****** ********, *** retain **** *** ****** value. *******, ********* ******* monitored ** * “***** service” **** *** **** attrition *** *** ****** value ***** ********. ********** relay ******** ***** ** replaced ** *** ******** DIY & *** ****, without *** *** *********** barriers ** *****. * new ****** ** ******* security **** ** ******** by “******* ********”.

******: *** *****; ******* Services *****

Agree
Disagree
Informative
Unhelpful
Funny

***** *** **** ******* that *** *********** ** scumbags **** *** ***** at ***** ********** ****** the ******* ********* ******** in ******** *** ******* off **** *******.

**** ** *** *** of *****.

** **** **** **** a ****** ** ** give ****** ******* * bad ****.

Agree
Disagree
Informative
Unhelpful
Funny: 1

**** ** **** *****...**** dirtbags ***** **** ***********. What ** ****** ** that **'* ** ********* in ** ******** ***** to ******* ******. ****** and ********* *** ***** going ****. ** **** of *** ********** **** has **** **** ********* in *** **** ** to ** ***** *** ultimately **** ******* ** help **; **** **** us ***** ** * species. *** ***** ****** more *** ****** *** there **** ****? ******** to **** **** **..** was/is ******** ** ** the ***** *** ******. Now *** **** ** ask ******** *** ****** even ****** ** ******** a **** ****** ****** when ***** **** *** offering ****** **** *** any ***** ******** ** get *** ****** ** you **** ** *** have * **** *******. Now, ** ** ********** were ** ** **** and *** ****** ******'* he ** *** ** facing ********* **** **** or * ******** ****** or * ****** ** misdemeanor? *** * **** and *** *** **** for ******* ******** ****'* life ** ****** * good ******'* **** * torturous **** ***********? ****** faith ** ****** ** each *** **** **; eventually, *** ********** *** human ********* **** **** us ** * ***** where * ***** *** to ****** *** ** cease ** ***** *** start ****. **'** ******* close. ************* **** *** go; ** **** **** eventually. ***** ****** **** later.

Agree: 5
Disagree: 1
Informative
Unhelpful
Funny

"** ****, *******, ** punishment ** ********* *********** has **** ********** ** stop ****** **** ********** customers ********** *** ****** States."

"*** ****, *** *** these ********* ** ****** or *******?". * ***'* know, ***** *** ********* CFO's, ***'*, ***'*, ***'*..*** the *** * ** 3 ***** ** *** hierarchy, ** ******** ***** company ********; ***** **** a ****** **** ** committees ** ****** **** enact ******* ** ***** these ******** ** ***** and ** ********. ** course **** ** *** assuming **** *** **********'* that ***** ** ************* or *********** *** *** they, ********** *******, * suppose. ******* **** *** rub...

Agree: 3
Disagree
Informative
Unhelpful
Funny

******…….****……***………. ** ****** *** many ***** *** **** has *******, ***** *** always **** ***** ********.

*** ***’* ****** **** research * ******* ** product ****** ******* ** the ****?????

Agree: 2
Disagree
Informative
Unhelpful
Funny

* ******* * ***** part ** *** ***** lies ****** *** ******** model ** **** *********** and *** ******* ****. It ********** *** ***** people ** *** ***** shady ******* ** *********** “take *** ***** *** run.” **** *** ********** and ******** ********* **** a ***** *** ** the ********* ******* ***** portfolio ***** **** *** their ****** *** *******.

********** ** **** * justice ****** **** ************ these ****** ********* *** keeps *** ****** * relatively **** ***** ** conduct ******** ** * company *** ********.

Agree: 3
Disagree
Informative: 2
Unhelpful
Funny

* *****-********* ***** **** the ***** *********...

*** ******* ** ** laughs * ****** *** at *** ****** ********* (no ******* ********) : )

Agree: 1
Disagree
Informative
Unhelpful
Funny

* **** ***. *** second ********* ** ** respects ** *** **** of *** *****. **** of **** ***** ******* a ******* ******* ** that ****** **** ***** are ******* ** ****** their ***** ** ******** businesses, *** ********* *** willing ** ***** ***** money, ******* **’* ********** safe ******** ** *** world ******* ***** ********** goes ********* *********. * say “*********” ******* * don’t **** ** ***** there ** ** ********** in *******, *** ********** speaking, ** ** * safe ***** ** ****** your ****** ******* ** the ****** *** ******** designed ** *** **** dwindling ************.

Agree
Disagree
Informative
Unhelpful
Funny: 1

**** ********* ************ **** me *****. : )

** ***** ** **** the **** ****** **** was ********* *** ** before ***** * ***** love ** *** * a ***** *** **** about **** ****** **** you *** ***** **** members.

**** **** * *** be ***** *** ***** more ***** **** *** are **** ** ***** to *** '*******' ** almost *** ** ***** in '*****'. ; )

Agree: 1
Disagree
Informative
Unhelpful
Funny: 1

*** **** ** ****** a **** **** ***********. They *** $*** ******* in ****. *** ***** income? ***** ** ****? Then **** **** ****** the ******** *** *** it **** **** ***** them. **** ** * joke ** ****. ** one **** **** * bonus, * ******* ** get ***** ******. ****** not * ****** ******** to ****.

Agree: 3
Disagree
Informative: 2
Unhelpful
Funny

*** **** *** ********** security ******** ** ***** with **** *******, *** ever ***** *** ***** came ** *** *** island **** ** *** mid ***, *** ***** mindset *** **** **** an ******** ******* ***** to ** **********. ***** is ***** * **** amount ** ******* *** companies **** **** *** true ***** ** ******** badge *** *****, *** it *** **** * disservice ** *** ********** to ******* ***** *** property **** ***** **** concerned ** ***** * P&L/shareholder ****** *** ***** own ******** *******. **** includes ******** ********** ************ property, ******** ***** ** and ****** ***** ****** of **** ******** ******** it...

Agree: 3
Disagree
Informative: 2
Unhelpful
Funny

*** ****.

Agree: 3
Disagree
Informative: 1
Unhelpful
Funny
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