Alarm companies ‘preyed on elderly’

TWO Cheshire-based firms have been shut down by the Government after an investigation found they were pressurising old people into signing up for expensive fire and burglar alarms.

The connected firms SAS Fire and Security Systems and Crime Research UK targeted elderly customers with false promotional offers and high pressure sales tactics, said the Insolvency Service.

The companies, which netted sales of £18.1m in the 31 months to September 2010, were wound up by the High Court last week in the public interest.

SAS Fire made unsolicited calls claiming customers had been chosen to receive an alarm for £1. This would be followed up by a lengthy home visit where people were encouraged to buy £6,000 systems which were installed within 24 hours. This meant customers could not exercise their rights to cancel within seven-days.

Stephen Speed, chief executive of The Insolvency Service said: “Our examination of SAS’s trading practices established their customers were, on average, 69 years old and it was this targeting of potentially vulnerable customers that was a matter of particular concern to The Insolvency Service.

“We found the company’s tactics were typical of those that prey on the elderly. The company used unacceptable methods to gain trust and entry into people’s homes and once inside the conduct of their sales people breached consumer protection law.

“Any other company that uses illegal high pressure sales tactics should be aware that The Insolvency Service can and will investigate, and where appropriate, take action to remove them from the business environment.”

SAS was registered to an address in Heaton Mersey, Stockport, and owned by David Diaz, Ludovic Black and Gary McVey. Its directors were Mr Diaz, of Glasgow, John Davies of Bromborough and Roger Waring of Knutsford.

Crime Research UK was based in Warrington and run by Chris De Sousa of Northwich and Paul Phoenix of Glasgow.