The Attorney General of Massachusetts has announced a $6.5 million settlement with a home security company that was accused of “trapping” consumers in long-term auto renewal contracts while also violating the state’s debt collection regulations.
A copy of the consent judgment with Safe Home Security, its sister companies, and the company’s chief executive can be accessed by clicking here. The settlement ends a lawsuit that was filed back in 2019 after hundreds of consumers complained about the company’s tactics.
The companies were accused of making an excessive amount of calls attempting to collect on unpaid debts, sending letters that did not contain notices of consumers’ rights, and threatening to report information about consumers’ credit to the credit reporting agencies.
When receiving cancellation requests from consumers, the companies failed to honor those requests in a timely fashion, provided misinformation about the requirements needed to cancel, and steering consumers into renewing contracts rather than canceling them.
Safe Home will pay a fine of $1.8 million and forgive $4.7 million of outstanding debt. The company has also agreed to comply with the state’s debt collection regulations and develop new procedures to handle cancellation requests.
“My office will always advocate for consumers, especially when they are preyed on by a company that engages in unfair and unlawful business practices,” said Attorney General Andrea Joy Campbell, in a statement. “We were able to hold Safe Home Security and its sister companies accountable for their alleged deceptive tactics, securing millions in debt relief for consumers, and we will continue to hold bad actors accountable.”
The defendants admitted no liability as part of the settlement.