ComplaintsforLowitt Alarms & Security Systems, Inc.

• Initial Complaint

  06/06/2023

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  My complaint is similar to that posted to the BBB on 1/17/22. I have used Lowitts alarm monitoring since 2013. On 4/28/23 I requested service termination effective 5/3/23, as I was selling the house and moving out of their service area. To my surprise, they demanded a termination penalty of $1423, representing expected payments until ****. In transitioning many services over the years, I have not encountered this. Lowitt directed me to the 5y service agreement I signed in 2021 (presumably the same as signed before in 2013 and 2018), which they induced me to sign with a linked $300 repair discount. In trust, I assumed the agreement was reasonable and constituted a commitment to continue to use Lowitt at a specified rate, along with the expected legalese absolving Lowitt from liability for theft etc.But I see now that the agreements fine print legalese - below the signature line and under the uninformative heading 9. Legal Action contains a provision giving Lowitt full payments for the next 5y, regardless of service delivery. I think this grossly unfair, and at least should have been disclosed in a customer-transparent fashion.I have discussed this with Lowitt. I offered to pay back the $300 discount I received in 2021, but their position was you signed. They offered to reduce the penalty by 50%, but in my view, half of an unfair penalty is still an unfair penalty. I noted that my signing in 2021 demonstrated that I was unaware of the fine print penalty, since I was by then beginning to contemplate moving. In fact, had the provision been appropriately disclosed in 2013 or 2018, I would not have signed then either. Looking around now at the competition, I see other alarm companies offering better terms and lower prices. I suspect that the previous complainant and I are not the only customers unaware that Lowitt's agreement effectively guarantees them a full 5y of future payments on service day 1, even if a customer moves out of their service area.

  Business response

  06/15/2023

  The customer required an equipment upgrade in 2021 and was provided with our standard price for Lowitt to perform the work. At the time of the proposal to upgrade the equipment, the customer had an Agreement with 2 years remaining on its term. The customer could have elected to accept the proposed price and retain his then current agreement. However, the customer requested a discount. ********************** agreed to the discount on the condition that the customer sign a new 5 year Agreement. The customer chose the discount and new 5 year agreement rather than pay the standard price.  The fact that the discounted price was based on the customer signing a new 5 year term agreement is noted very clearly on the work order directly below the scope of work and above the customer's signature. It is also noted on page 1 in paragraph 2 of the Agreement that the customer signed.  It appears that the customer was aware that he intended to move  when he signed the new 5 year Agreement. If the customer had disclosed his intention to move prior to signing the new Agreement, Lowitt would not have offered a discount for a new 5 year Agreement. Rather than sharing his intention to move and not receiving the discount, the customer chose the discount and committed to a 5 year Agreement.
  
  The entire point of a multi year contract  is that each party is committing to perform under that contract for the entire term. As is the case for many services, including cellular communications services, an early termination of the agreement results in the customer paying an early termination fee.  Lowitts monitoring services agreement is no different. The customer chose to sign a 5 year agreement in order to obtain a financial discount and now complains because he breached the agreement.
  
  Since the customer knew he would be moving, he should not have entered into a 5 year agreement. The best upfront pricing is based on the (5) year term which is why the customer elected to proceed with that agreement

• Initial Complaint

  01/17/2022

  Complaint Type:

  Sales and Advertising Issues

  Status:

  Answered

  More info

  I have been using Lowitt's monthly alarm monitoring service since I moved into my last house in 2012. I paid quarterly for their central monitoring service for the past 9 years, always on time. In 2021 I moved out of my house and therefore discontinued the alarm monitoring service. I did not switch services to another provider, I discontinued the monitoring service because I moved and would no longer require the alarm monitoring service for my previous house. Lowitt is claiming that I now owe them a cancellation fee. I don't believe I owe them anything as they are no longer providing the monthly service. I shouldn't have to pay a cancellation fee or any amount of money as I am no longer receiving the service. Lowitt is charging me a cancellation fee of approximately $1,300 because they say it was in the contract. The fee was buried in fine print in the contract and was never made clear to me when I contracted with them.I have had numerous discussions with them on the phone and via email explaining the situation but they still insist that I owe them a cancellation fee, even though they are no longer providing me any service.

  Business response

  01/19/2022

  The customers wife called Lowitts office on 06/30/21 to inquire about getting a quote for their new home and the call was returned and a message was left.  The customers wife called Lowitts office again on 07/12/21 and a representative spent over an hour talking with her and discussed a system for their new home. During this call, the customer was made aware of the contractual obligation in place and was advised that as long as they sign up with Lowitt at their new home within (10) business days of their current account going inactive, Lowitt would be happy to waive the early termination fee due on this agreement. The customers wife advised that she would get back to the representative with more information so that a formal proposal could be provided to the customers for a system for their new home.  Lowitt did not hear back from the customers again until 09/24/21 at which time the customer called and advised he wished to cancel service and sent an email stating that he did not wish to continue service with Lowitt at his new home.  A representative of Lowitt called and talked with the customer who explained he signed up with another company at his new home, a point which he also put in an email to Lowitt at a later date.  The customer then attempted to discredit the validly of the agreement.  Lowitts representative explained that the agreement was mailed to their attention and they had as much time as desired to review the agreement prior to them ultimately signing it and mailing it back to Lowitts office.  Lowitts representative also advised that for signing the agreement they received a price lock on the monitoring rate for a set period of time.  The customers did not sell the property and so Lowitt advised that they could continue to pay for the service and their tenants could utilize the alarm system.  Lowitt also pointed out that even when the alarm is not set, the fire protection is always on to protect the property and all occupants and explained that many times homeowners insurance companies provide discounting when such protection is in place that can offset a portion of the cost to maintain the system.  The customer advised that he was not interested in maintaining the alarm at the property and Lowitt sent the customer an invoice.  In an effort to be as accommodating as possible,Lowitt even offered to provide a 15% discount off the cost of the early termination fee if the fee were to be paid on time.  The customer repeatedly attempted to intimidate Lowitt into releasing them from the agreement by stating and then noting in emails to Lowitt that he intended to report Lowitt to the Better Business Bureau.  Lowitt explained to the customer repeatedly that they were sent an agreement in the mail to review at their leisure and they elected to sign and mail it back to Lowitts office,thus receiving the advantage of a locked in rate for a period of time. Furthermore, Lowitt offered to release the customers from the agreement upon signing at their new home and they elected to go with another company. Finally, the customers still own the property where the system is installed and simply made the decision that they no longer wish to continue the service,despite that fact that the alarm can provide life safety protection even in their absence.  When the customer still expressed their desire to cancel,a courtesy discount was offered on the fee due.  Lowitt made every effort to be accommodating to this customer in an attempt to come to an amicable resolution to no avail.

  Customer response

  01/21/2022

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID# ********, and have determined that my complaint has NOT been resolved because:

  I myself reached out to the sales department at Lowitt when I was shopping for a new system for my new home.  I left a message and they never called me back.  By the time they spoke to my wife weeks later I had already purchased another system.  

  I should not have to pay any fee for service that I am no longer receiving.  My alarm system was paid in full years ago at my previous home.  I do not have nor have I ever had a service contract with Lowitt.  The contract was to provide monthly monitoring service.  I no longer live at the location and no longer need monitoring service.  The cancellation fee is unjustified.  It is Lowitt's attempt to extort customers who wish to end their contracts early.  In my case, my reason was legitimate to end the contract, I moved.  

  When I renewed my service with Lowitt I was not made aware of the cancellation fee.  The fee was buried in fine print in the contract and the sales rep did not make me aware of it.  Other alarm companies are not charging cancellation fees and had I known about Lowitt's fee, I would have looked for another provider.  

   

  
  

  
  
  
   
  

  Business response

  02/03/2022

  We have spoken with the customer and this matter has been resolved.

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