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The Â鶹´«Ã½ Trade Commission is sending payments totaling nearly $500,000 to consumers who were harmed by home security company Vivint Smart Homes, Inc., which allegedly misused credit reports to help unqualified customers get financing for the company’s products and services.

The FTC alleged in a complaint announced in April 2021 that Vivint’s sales representatives obtained financing for unqualified customers by using the credit history of an unrelated third party with the same or similar name, or adding cosigners without their permission. If customers who qualified using these deceptive tactics later defaulted on their loans, Vivint referred the unrelated third party or the impermissible cosigner to debt collectors, potentially harming that consumer’s credit. After hearing from these debt collectors, some affected consumers reported to the FTC that they were victims of identity theft.

Today, the FTC is sending its first round of payments in the matter, which includes checks to 470 consumers who filed a valid claim before the deadline. The FTC will distribute additional funds at a later date.

Recipients should cash their checks within 90 days, as indicated on the check. The average payment is $1,056.

Consumers who have questions about their payment or believe they should have been included in the distribution, should contact the refund administrator, Rust Consulting, Inc., at 1-833-472-1996. Consumers can also visit the FTC website to view frequently asked questions about the refund process. The Commission never requires people to pay money or provide account information to get a refund.

The Commission’s  provide a state-by-state breakdown of refunds in FTC cases. In 2023, FTC actions led to $330 million in refunds to consumers across the country.