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Comments on 3 day notice to cancel waiver from July 26 2014 article
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Ken,
In reference to the dealer who was looking for a form to allow waiver of the three-day notice of cancellation: I've been trying to think of one legitimate reason why it would be beneficial to the customer to waive the three-day notice. A dealer, maybe, but not a subscriber. Maybe I'm just not thinking outside the box, so if someone can give me a legitimate reason why a subscriber would want to waive this protection, I'll consider myself having been schooled. "Going out of town" doesn't hold water. Neither does any other reason when logic tells me it isn't necessary to waive the notice...just don't sign and return the form within the three-day period...problem solved without the need for a waiver. Am I missing something here?
Lee Hearn
Allegiant Security, Inc
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Response
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I think you are missing something. The subscriber just holding on to the notice for 3 days doesn't provide any assurance to the alarm company during those 3 days. The notice gives the subscriber 3 days to cancel. If the alarm company does the installation within those 3 days, hoping that the subscriber won't send in the notice, the subscriber can cancel and require the alarm company to remove the installation and restore the premises. "going out of town" is a good reason to waive the cancellation right, assuming you're in a jurisdiction that permits waiver. There can be other reasons, such as specific threats or host of other reasons.
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Question
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Ken
why would anyone want a waiver? I’d bet there are a lot of curious folks out there that would love to know why this came to light.
M.
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Response
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There are a lot of alarm companies that solicit, sign up and install in one day. Some alarm companies schedule the installation and don't get the contract signed until that day - which is a poor way of doing business in my opinion. Even worse if you wait until the installation is in before presenting the contract for signature.
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Question
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Ken,
Regarding the three day right to cancel a contract, it is my understanding that this consumer protection law only applies to contracts signed in the customer's home. If a customer wants a system installed immediately, they should come to the business location to sign a contract. If the contract is signed at any location other than the customer's home, the three day right to cancel does not apply because it is not a door-to-door sale. Is my understanding correct or am I misinformed?
Thank you
Dave Easley
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Response
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While some state laws may differ, it's not just contracts signed in the home. Generally it's contracts signed anywhere other than the alarm company's principal place of business. For example, if you're at a home improvement convention and sign up residential consumers there it's not your regular place of business and they should get the 3 day notice. Keep in mind that a buyer of your alarm residential alarm accounts is going to be looking for your 3 day notice of cancellation policy and compliance. Some buyers won't be interested in your accounts if you have not complied.
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Question
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Ken
Thanks for the great service you provide for our Industry. We use your contracts and never have gone door to door selling systems in our 55 year history.
Two quick questions. We are in South Carolina
Is a 3 day waiting form only required if the contract is signed in their home on the day of installation? (Our techs carry the contract out on the day of install since most of our residential systems are sold over the phone)
We have never had a customer change their mind about an installation, so can we take our chances and not do one and if they were to request to remove the system in the first 3 days we would just go out and remove it and return the installation cost?
ME
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Response
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Your subs have 3 days to cancel from date you provide the 3 day notice. The notice is required even if the contract is signed on the day of installation; in fact, that's probably what the statute was designed to guard against.
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Question
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Ken
In the event that consumers signs the alarm installation contract and the installation is done that afternoon or the next day does the consumer still have the three day right to cancel?
Thank you
Concerned
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Response
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Yes you are taking a chance [remote as it may be in most situations] since the sub can cancel after the installation is in.
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