Lina M. Khan is Chair of the Federal Trade Commission | Official Website
The Federal Trade Commission (FTC) is distributing payments amounting to nearly $500,000 to consumers affected by Vivint Smart Homes, Inc.'s alleged misuse of credit reports. The home security company was accused of using deceptive practices to secure financing for unqualified customers.
In a complaint announced in April 2021, the FTC claimed that Vivint's sales representatives used the credit history of unrelated third parties with similar names or added cosigners without their consent. If these customers defaulted on their loans, Vivint reportedly referred the unrelated third party or unauthorized cosigner to debt collectors, potentially damaging their credit. Some affected individuals reported identity theft to the FTC after being contacted by debt collectors.
The FTC is now issuing its first round of payments, which includes checks for 470 consumers who submitted valid claims before the deadline. Additional funds will be distributed later. Recipients are advised to cash their checks within 90 days; the average payment is $1,056.
Consumers with questions about their payment or those who believe they should have been included in the distribution can contact Rust Consulting, Inc., at 1-833-472-1996. More information about the refund process is available on the FTC website. The Commission emphasizes that it never requires people to pay money or provide account information to receive a refund.
The FTC's interactive dashboards offer a state-by-state breakdown of refunds in various cases. In 2023 alone, FTC actions resulted in $330 million in refunds to consumers nationwide.
The Federal Trade Commission aims to promote competition and protect and educate consumers. It assures that it will never demand money, make threats, instruct individuals to transfer money, or promise prizes. Consumers can learn more about related topics at consumer.ftc.gov and report fraud at ReportFraud.ftc.gov.
