************************
3 DAY COOLING OFF PERIOD FOR PHONE SALE - MONITORING
***********************
Ken,
    Regarding the recent inquiry from 'Anonymous' from Texas, if a sale of a monitored account over the phone is a result of a prospective customer CALLING in to the alarm company's office (not being solicited via telemarketing) and a deposit is taken over the phone and the contract dated as of that date, does the 3 day cooling off period begin at the time the binder is received?
    I was under the impression that the 3 day cooling off period was for an IN HOME sale, being face to face with a salesperson in order to protect the consumer from high pressure sales tactics.
Duane
All Island Security Inc
NY
*************************
RESPONSE
*************************
    The 3 day cooling off period is typically associated with door to door sales.  However, some statutes have expanded the in face at the door applicability to a sale taking place anywhere other than the seller's retail place of business.  In these jurisdictions a sale taking place at a hotel show, trade show, or at a satelitte kyosk in a mall would require a cooling off period.  There are two aspects to the cooling off notice.  One is on the agreement, giving notice that the consumer has 72 hours, or 3 days, to cancel the transaction without penalty.  The other is the actual cancellation form which the seller gives to the consumer.  The 3 days, or 72 hours, does not begin to run until the cancellation form is provided to the consumer.  
    You raise another issue, telemarketing laws.  In some jurisdictions telemarketers have to be licensed, or registered and a telemarking sale must give a cooling off period.  You need to check your jurisdiction to see what the telemarkeing law is, if any.  
***********************
WAIVING 3 DAY COOLING OFF PERIOD
***********************
Ken,
    I live in Texas.  We signed up for a security system and then decided to cancel.  We initialed a waiver to the 3 day cancellation without really knowing what it was and a NoC was not left at the home.  Is the waiver legal in Texas or are we still permitted to cancel?
    Thanks for your help.
Eric
*********************
RESPONSE
*********************
    I received this inquiry from a consumer.  I didn't provide a response because our advice on this forum is for the alarm industry, not consumers.  However I did think it raised a great question for alarm dealers.
    All jurisdictions require a 3 day cooling off period.  Some jurisdictions permit a waiver [not many].  Usually the waiver needs to be handwritten by the consumer on a paper separate from the contract and express some reason for the waiver, such as leaving for vacation, etc.  
    If you perform work during the 3 day coolling off period be advised that the consumer can unravel the transaction and require you to restore the premises.  Worse, the consumer can report you to the consumer affairs or AG and you can be charged with deceptive business practices and punished.  And, even if you do get away with it, when you go to sell your accounts you may find that many potential buyers won't be interested because of your failure to comply with the cancellation law.
      All of our Standard Form residential agreements come with the cancellation notice and the cancellation form.  Though the cancellation notice on the agreement is almost identical in each state the actual cancellation form is different in almost all states.  We give you the correct one.  www.alarmcontracts.com.
**********************