A company which sold monitored fire and intruder alarms, making millions in the process, has been wound up following an investigation by officers of the Insolvency Service
SAS Fire and Security Systems Limited was initially served an enforcement notice by the Information Commissioners Office on 5 March last year and given 28 days to appeal. Individuals concerned had previously registered with the Telephone Preference Service or had asked not to be contacted by the company. However, many continued to receive sales calls.
In November, a petition was presented by the secretary of state for business, innovation and skills for the company to be wound up “in the public interest”.
The company worked alongside Crime Research UK Limited targeting mainly elderly customers with false promotional offers and high pressure sales tactics, according to The Insolvency Service. Working across Britain, SAS Fire and Security Systems made unsolicited phone calls claiming customers had been chosen to receive one of a limited number of alarm systems at a cost of only £1.00. This would be followed up by a lengthy home visit when home owners were pressed to buy a monitoring and response package costing up to £6,000 for a 15-year contract, in order to obtain the alarm system at the £1.00 cost.
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."
The monitoring of existing customer alarms has since been taken over by another company, according to The Insolvency Service.
