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Question
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Ken,
In the past I have used the contracts to protect me and keep subscribers form canceling. But when they have canceled I’ve gone only as far as to explain the contract to them and send a final bill. Most amounts owed are $300 to $1000. How are most alarm companies collecting? Most of them I ask say it’s not worth their time. Do I need a lawyer or is it more of small claims thing? To me money is money and I’m tired of just letting it go. Especially to those subscribers who believe they are above the contracts.
Sincerely,
Dirk F
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Answer
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First of all, you should terminate subscribers who are not performing their obligation under the contract - a fancy way of saying they aren't paying. Pick a specific date and time for the termination, give them a few days notice, and then shut them off. Don't provide service beyond your scheduled termination date.
Pursuing your subscribers in collections is another matter. If you don't have enough of them and a support staff to participate in the collection process, it's not likely to be worth your time, aggravation and expense. If you are a larger company and you have enough canceling [breaching is the better word] subscribers then a collection process definitely does pay. In New York and New Jersey my office has an aggressive and effective collection department devoted primarily to the alarm industry. So give us a call [Gene Rosen heads the dept - 516 747 6700 x 303].
I can't recommend a "collection agency" and I suggest you avoid them. I've never heard anything good about one [and don't bother letting me know you have one; I don't want to endorse any]. If you decide to use a local attorney be careful that you are not opening a can of worms. You don't want to encourage counterclaims or complaints to consumer agencies, so be careful selecting a lawyer to represent you and make sure the attorney is mindful of subscriber ingenuity when defending against collection efforts.
The Standard Form Contracts do contain clear collection provisions. Read them and follow them before getting started. I used to counsel against Small Claims actions that you can start by yourself in most jurisdictions, but it is a practical option and you're not likely to get into too much trouble in that forum.
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comments on licensing from Dec 27, 2013 article
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Ken
With regard to working without a license with impunity, the best resource is your state licensing statute. Read the statute to find out what is required to OBEY the regulation. Be able to cite specific statutory violations when you talk to others. Some states require LICENSE NUMBERS BE DISPLAYED on all vehicles, proposals, stationery AND ADVERTISING. This included's " SYSTEM BY" stickers as well as telephone directory advertising and newspaper. Don't forget the ad books that we all get hooked into for our churches, synagogues and other institutions that raise money. State regulators no longer have the manpower to patrol and cruise job sites looking for violators.
In most cases you have to be willing to sign your name to the complaint and tell them WHERE and WHEN the violation took place. In the case of print ad violations you can send the statute to the advertising manager familiarizing them with the law and include the violators ad and indicate you are making a complaint to the regulatory authority.
That's my two cents LAST for 2013.
Happy healthy and safe New Year to ALL...
Joel Kent
Windsor Ct
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Ken
Reporting an unlicensed installer in New York does absolutely no good
Mike
CSS
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Ken
In response to unlicensed contractors. I have had a very good response from the Arizona Registrar of Contractors. They have the power to issue a seize and assist, unlike the Board of Technical Registration and other State Boards.
I find educating the consumer about the importance of using solely licensed Contractors to be useful. In Arizona, neither the consumer nor the unlicensed Contractor has any recourse in Arizona court. Also, the Consumer has no recovery fund protection and Contractors subbing to unlicensed Contractors face the loss of their own license.
Here are a couple Arizona laws that apply directly to Contractors not licensed by the ROC in Arizona. I am sure other States have similar statutes regarding unlicensed Contractors.
A.R.S. §32-1153:
No contractor as defined in section 32-1101 shall act as agent or commence or maintain any action in any court of the state for collection of compensation for the performance of any act for which a license is required by this chapter without alleging and proving that the contracting party whose contract gives rise to the claim was a duly licensed contractor when the contract sued upon was entered into and when the alleged cause of action arose.
32-1154. Grounds for suspension or revocation of license; continuing jurisdiction; civil penalty; recovery fund award; summary suspension (A.) The holder of a license or any person listed on a license pursuant to this chapter shall not commit any of the following acts or omissions: (10.) Aiding or abetting a licensed or unlicensed person to evade this chapter, knowingly or recklessly combining or conspiring with a licensed or unlicensed person, allowing one's license to be used by a licensed or unlicensed person or acting as agent, partner, associate or otherwise of a licensed or unlicensed person with intent to evade this chapter.
I hope this helps,
Roger D. Score, President
Arizona Alarm Dealers Association, Inc.
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