Check agent's license

Last Saturday, Scot Scheuring got a bit of a consumer sucker punch.

A door-to-door home security salesman persuaded him to signing a three-year, $1,600 contract with a company that wasn't licensed to do business in the state.

The Raleigh state government worker said that he is generally a smart shopper -- checking the Internet and reading reviews before buying. But this time he let his guard down.

Scheuring blamed his lapse in judgment on a couple of things.

One was that the young man who showed up at his door wearing a shirt with a Firstline Security logo, said that Scheuring's neighbor had sent him. The neighbor even confirmed it.

He also told Scheuring the home alarm service uses cellular technology to connect to the monitoring station, which was a real selling point for Scheuring.

Because he doesn't own a land-line phone, Scheuring had been looking for an alarm company that would work with his cellular phone system. The young man promised free installation, equipment and activation, as well as a discounted monitoring rate of $44.95 a month if Scheuring agreed to keep a company sign in his yard and stickers on his windows.

Scheuring agreed. But after the salesman and the serviceman left his home, he had second thoughts. He did some research and learned that Firstline Security was a reseller, or an authorized dealer based in Orem, Utah. The system was made by Alarm.com and if Scheuring had bought directly from Alarm.com, he would have paid about $10 less per month for monitoring. Scheuring then called the N.C. Alarm Licensing Board, a department of the state Attorney General's Office, to ask about Firstline Security.

That's when he found out the company didn't have an N.C. business license.

Mark Poole, who works for the N.C. Alarm Licensing Board, said that Firstline had applied for a license in May, and it was still pending.

"They can't conduct business in North Carolina until they have a license," said Poole in a recent interview. He said that before they can receive a license, his office has to complete a background investigation which includes doing criminal history checks on the company and its employees.

Cindy Sullivan, director of subscriber services at Firstline Security, said that it was not unusual for the company to start operating in a state before they have a license.

"It's typical to move into an area after we have answered all the appropriate questions to the licensing board," Sullivan said. "We have done all the appropriate steps, we are just waiting for the last check box to check off."

The company does have a city of Raleigh business license and a state license to do electrical contracting.

Poole said that states may handle licensing differently, but in North Carolina no alarm service company can operate without a license.

On Tuesday, his office issued a "cease and desist" order to Firstline Security. The company is appealing.

Scheuring has canceled his contract with Firstline without penalty because he properly notified the company within three business days after it was signed.

Poole said that before signing any contracts, consumers should do a few security checks of their own. So far this year, the local Better Business Bureau has received 3,299 inquiries about home burglary alarm and security monitoring equipment companies, said Beverly Baskin, president of the Eastern North Carolina bureau. Before you sign up:

* Ask salespeople and service workers to show the registration card that proves they are registered with the N.C. Alarm Licensing Board. If they decline, don't do business with them.

* Don't let salespeople into your home.

* Ask whether the company is an authorized dealer -- meaning they sell equipment and monitoring systems that are made by other companies. If the company is an authorized dealer, you may want to check directly with the original company they claim to represent to make sure.

* Don't be pressured into making a decision immediately. Ask the salesperson to leave information about the product and a contact number. Go online and look up the company. Compare its prices and services to at least two other companies. Ask neighbors and friends for recommendations.

* If you have reservations after signing an agreement, remember in North Carolina you have three business days to void the contract.