By Sarah Mirando  |  May 24, 2013

Category: Legal News
Follow us on Twitter and Facebook for the latest Early Termination Fee (ETF) Class Action Lawsuit Settlement News!

 

ADT Customers Sue Over Early Termination Fees

By Jessica Tyner

 

ADT early termination fee lawsuitIn the world of home security systems, ADT is a leader. Like other home security companies, ADT charges an early termination fee (ETF) when customers cancel their service early. After all, if that wasn’t in place, there would be no deterrent for customers to break the contracts left and right.


However, a recent ETF class action lawsuit claims that the way ADT handles things also violates California’s Consumer Protection Act. The ADT class action lawsuit claims that by demanding outrageous cancellation fees while simultaneously increases fees for customers who continue service, the company is forcing people to pony up more cash one way or another.

Plaintiffs say ADT is trying to hide behind the go-to excuse that charging ETFs is common practice and things have always been that way. However, just because something is common practice doesn’t mean that it’s right or legal. Similar situations have happened before with mobile phone carriers, like the Verizon ETF class action lawsuit that ended with the company spending $21 million in settlements. However, class action lawsuits over early termination fees are new in the home protection industry, and they come with a strong backing. ETFs can be notoriously crafty, and many customers have had enough.

California Woman Spearheads ADT Early Termination Fee Lawsuit

Emily Hogan is one of two lead plaintiffs in the ETF class action lawsuit against ADT. Hogan filed her initial lawsuit in 2012, claiming that ADT’s fees violated the Truth in Lending Act, and she was joined by an Illinois woman who agreed. According to Hogan, there are “at least” 100 other ADT ETF victims, but that’s a low-end ballpark figure. Some experts think that hundreds of people have suffered financially because of ADT’s practices and will be joining the lawsuits.

How does a person know if they have a case against ADT? That will require a claim review, but in general, if you’ve paid an early termination fee to ADT, you might qualify. So far, ADT has declined to respond, but there have been murmurings of their possible defense.

Why ETFs are Sometimes Illegal

Take a look at the mobile phone lawsuits and it’s easy to see why ETFs can sometimes be illegal. Prior to these lawsuits, phone carriers charged one exorbitant early termination fee no matter when, why or how a customer canceled service. What if someone signed up for a two-year contract, used the phone for 19 months, and then took a job overseas? Critics say it’s unfair that they have to pay hundreds of dollars just because they’re moving.

Since those mobile class action lawsuits, providers have switched to a pro-rated ETF system. That’s fair to the customers and still allows the company to recoup some costs. It’s expected that security system companies like ADT might take after the mobile phone carriers in the end.

Have You Paid an ADT Early Termination Fee?

ADT is one of the most popular home security companies in the U.S. If you’ve ever used their services and paid an ETF, there’s a good chance you have a legal claim. Compensation may be in order, and right now is the perfect time to join a class action lawsuit.

Find out more by visiting the California Early Termination Fee (ETF) Class Action Lawsuit Investigation site. Once you submit your information, an attorney will contact you to provide a free ADT claim review if you qualify.


We tell you about cash you can claim EVERY WEEK! Sign up for our free newsletter.

 

Updated May 24th, 2013

 

All class action and lawsuit news updates are listed in the Lawsuit News section of Top Class Actions

LEGAL INFORMATION IS NOT LEGAL ADVICE
Top Class Actions Legal Statement
©2008 – 2013 Top Class Actions® LLC
Various Trademarks held by their respective owners

10 thoughts onADT Customers Sue Over Early Termination Fees

  1. Paul Newman says:

    ADT tried to get more money from me under false pretenses, breaching our contract.

    I moved from one house to another, but the current home was being built, so we moved in with in-laws for five months. ADT would not suspend service for the time that I didn’t have service (five months), but did the last month before I moved to the new house, so they contradicted themselves. The main problem was, they told me to take down the cameras and they would install them at the new house. When we moved into the new house and the ADT installer arrived, he advised the old cameras won’t work with the new system they were upselling me on for almost $5,000. He advised that I had three days to cancel, so I did and now they won’t install my older cameras, even
    though several of ADT’s employees told me the older cameras could be utilized. They then want me to pay for equipment they will no longer install. They lie constantly and tell there employees different information. I spoke to no less than 10 different employees who told me contradicting information and would not allow me to speak to a supervisor. They have terrible business practices and they are fraudulent. They now have sent me to collections. If your alarm company lies to you, what does that say about their security service.

    I would like to join a class action lawsuit against ADT.

    Thank you!

  2. Rebecca Jenkins says:

    I’m dealing with ADT in an attempt to cancel my account. I’m in NY
    Who can I contact about this?

  3. Teresa says:

    I got ADT when I had a problem with a room mate that developed a drug problem. When they came out the installed the cameras etc . And after they were done they had me sign an IPAD device. This supposedly generated a docusign document that must have gone to spam because I did not receive it. When I finally got a copy after filing a complaint with the FDIC , I was told I signed the agreement so I was stuck with it. The TILA statement said that I was obligated for 60 months worth of payments for the equipment , and 24 months for monitoring. So I lived with this for 24 months. 24 months of a security system that could be shut off with a light switch by anybody who walked through my door. It has another camera over the garage that is so blurry you can’t typically make out a license plate. The front door lock is supposed to be able to be locked remotely- but because of the way the item was installed it will not lock remotely at all and the door has to be kicked to open at all now. The monitoring system keeps resetting itself to record on the garage camera only- and only keeps clips for 24 hours to spite changing the rule to 7 days multiple times. This system is not monitored. And yet they have been charging $47.99 a month plus the installment plan plus taxes and Fees?????it comes out to between $83-87?a month. The Truth in Lending Agreement – states I have to pay for the equipment for 60 months but the monitoring system for 24 months . It adds it up and at the bottom of the page $ 2845.76 but when I call to cancel the monitoring portion the contract indicates that I can do after 24 months they told me it will cost me 900+/ –
    This is escalating the payment for the equipment that has never worked- that they refused to return – that I was also charged a warranty agreement for. I am writing consumer protection and the FDIC . This is predatory at best and fraud at its worst.

    1. Linda Givens says:

      ADT and Safe Street are Crooks.Something like this should not even be going on.Why can’t these companies be closed 🔒 down.Where is the Justice.

  4. Wanda Holguin says:

    I had ADT in Missouri and moved to Texas in august of 2021 and they are charging me $1400 for ETF. I’ve made roughly $300 payments to them and I cannot afford to keep doing it. I’m on social security disability fixed income and have chronic leukemia to worry about. Do I have a chance for the lawsuit or just let it go on my credit?

  5. Christina says:

    Yeah Adt is absolutely awful company terrible customer service and very deceitful!!

  6. rosalie Peoples says:

    I wish that someone would do something about ADT (Defender). They need to be out of business. The lie/forge signatures/and are deceitful and no one seems to care about all of these 100’s of similar complaints against them. What is this world coming to that companies can do this and it is alright????? My email address is [email protected] and if someone is willing to work with me against ADT please contact me ASAP.

  7. Danielle says:

    Is this just for Cali residents? I live in NY.

  8. Diane says:

    do they have this for Ill? This happened to me here.

  9. Dorothy says:

    when can we file.

Leave a Reply

Your email address will not be published. By submitting your comment and contact information, you agree to receive marketing emails from Top Class Actions regarding this and/or similar lawsuits or settlements, and/or to be contacted by an attorney or law firm to discuss the details of your potential case at no charge to you if you qualify. Required fields are marked *

Please note: Top Class Actions is not a settlement administrator or law firm. Top Class Actions is a legal news source that reports on class action lawsuits, class action settlements, drug injury lawsuits and product liability lawsuits. Top Class Actions does not process claims and we cannot advise you on the status of any class action settlement claim. You must contact the settlement administrator or your attorney for any updates regarding your claim status, claim form or questions about when payments are expected to be mailed out.