Questions - canceling accounts 

Ken

I am “firing” one of my customers for being constantly late on their annual monitoring payment.  I no longer have the desire to keep chasing them for a couple hundred bucks every year.  I have called and left messages with no response.  I recently sent a certified, return receipt requested cancellation telling my customer that I am canceling their monitoring effective November 1st, 2013.  The post office left a notice at their house since there was apparently no one home to sign for the letter.

They have 15 days to sign for the letter at the post office before the post office returns it to me as undeliverable.  Have I done everything I need to do in order to legally terminate their monitoring with no liability past November 1st?

Bob Klein

RK Electronic Services

Monroe, CT

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another question

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Ken 

We have a client who wants to cancel our services and our current contract of the 5 years they only signed a year ago. We have the All in One contract with you and was wondering your thoughts and how we should go about it.

I am just wondering from a legal stand point what exactly we are entitled to and how we should handle it. After reading the contract I think I understand it and am not sure how to respond to his request. Please get back to me with your thoughts and thanks.

Robert 

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Answer

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    Two sides of the coin.  One alarm co who wants to dump its subscriber - a late payor, and the other alarm co whose subscriber wants to cancel service before completing the 5 year contract.

    Terminating your subscriber can be tricky.  First, make sure your subscriber is not paid up.  I've had many clients turn over collection cases before the sub actually went into default.  If your sub gives notice it wants to cancel check to see what payments were made and when the next payment is due.  Wait until then to default the sub.

    When you decide to default the sub make sure you read your contract carefully.  If you have any of my Standard Form Contracts you aren't going to find a requirement for certified mail.  As you can see from the first question above, the termination notice isn't going to be read by the sub.  Fax or email, even ordinary mail, would have been better communication and alot cheaper and less trouble.  Even though the contract may not require notice of termination it's a good idea to give it.  When terminating be sure to set a date and time for termination of service, and be sure to cancel at that time.  Leave no room for continuation of service once you send the termination notice.  If that sub wants service you;ll have to either rescind the notice or enter into a new contract, which is preferable.

    Your contract will give you the option of terminating the subscriber for various reasons.  If you're terminating the sub then you must have a reason; late payment or excessive service are probably the most common reasons.  Hold the sub in default for non payment, assuming that is the case.  No notice is required and no cure period is built into the terms of the contract.  

    Your sub notifies you that it is canceling.  Aside from simple good business practices which would be trying to find out why the sub is canceling, you should send the sub a letter - email, fax or ordinary mail - that sub is under contract and you intend to hold sub to the contract.  There should be no misunderstanding.  One large alarm client had customer department that would get a cancellation call and simply take in the information, giving the sub the impression that it was OK to terminate and that there would be no repercussions.  Days later we would start a collection action.  Many settled quickly with reinstatement of the contract.  Sending the sub an invoice for the balance of the contract and whatever damages are owed under the contract is another measure you should take almost immediately upon getting notice of cancellation.  The sooner the sub understands what the contract obligations are the better chance you have of reinstating the account or quickly settling the balance under the contract.  

    If you're in NY or NJ our collection department can assist.  Give us a call.  Contact Gene Rosen, Esq at 516 747 6700 x 303 or GRosen@KirschenbaumEsq.com, or give me a call.


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Webinars

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December 4, 2013   12 noon EST  Register here: https://attendee.gotowebinar.com/register/4919260455763006721

     Title:  10 Things Residential Security Alarm Companies should consider BEFORE entering the world of Commercial Engineered System Fire Alarms

 

     Presented by:  Bob Williams, President of Briscoe Protective Systems and his Management Team. 

Briscoe Protective Systems has been in the industry for 35 Years and has made the transition from a Residential Alarm Company in the late 70’s to a Engineered System Fire and Security Company that is an SDM Top 100 Company. Find us on the web at www.BriscoeProtective.com or on LinkedIn under Companies, Facebook and Twitter@BriscoeProSys 

      Description:  There is a big difference between installing Residential Fire Systems and Commercial Engineered Fire Systems and there are “Key Factors” that Security Company’s should consider before attempting to go into this lucrative but challenging market.

      Who should attend:  Alarm company owners and fire techs.  

 

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