Vivint to Pay $3.2M to Settle Allegations Its Reps Deceived Lenders
Vivint Smart Home agreed to pay $3.2 million to settle allegations that its sales reps deceived federally insured lenders into approving financing for customers’ buys of Vivint’s home monitoring products, violating the Financial Institutions Reform, Recovery and Enforcement Act, said…
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DOJ Wednesday. The government contended that Vivint reps used personal funds from 2017-20 to cover initial financing payments for customers who sought financing to buy Vivint’s products. The reps made false and misleading statements to lenders about creditworthiness of the Vivint customers to make it appear that they, not the reps, made the initial payments. The company is “pleased to have reached this resolution related to certain past sales practices by some of our sales representatives," emailed a spokesperson. "In addition to cooperating with the DOJ, we have addressed the issues and continue to strengthen our compliance policies, practices and procedures.”