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October 30, 2014
WEBINAR NOTICE:  The Central Station series  
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Today's Webinar presentation: October 30, 2012 – COPS Monitoring
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COMMENTS ON TERMINATING SUBSCRIBER FROM OCT 22, 2014 ARTICLE
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Ken 
    In reference to “terminating your subscriber” article: What about pulling the communication device from the subscriber? If we term due to nonpayment are we allowed to recover the radio?
Thanks.
John Romero 
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RESPONSE
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    Yes, if you own it; or you can opt to sell it to the subscriber for the established and agreed upon price if that is in your agreement - and if you use the Standard Form Agreement it should be there.
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MORE COMMENTS
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Ken,
    I think you were incorrect with your response about termination notices and the need to get a new contract signed.  Certainly in example A, where the company gives a ten day notice and the customer pays within that time, no new contract should be necessary.  Service was not canceled.  The notice presumably threatened cancellation if the balance was not paid.  The customer cured its breach and life goes on under the contract.
    Example B is not as clear cut, but I still think you don’t need a new contract.  The end result is the same as the other example…the customer cured its breach and if the alarm company accepts it and continues to provide service, once again the relationship is back to normal.  I think the contract’s continuation is ratified at that point.
    As a practical matter, in either event, what is the risk of operating under the existing contract going forward?  Once the customer pays and accepts service going forward, I don’t see how it gives the customer any basis to subsequently get out of the contract before its term is up.  Similarly, I also don’t see how the enforceability any of the protective provisions (like the limited liability clause) would be compromised.  In the real world, while not happening frequently, these situations do happen somewhat regularly and we have not had a problem continuing with the existing contract once the non-payment breach is cured (assuming we haven’t already canceled the account)
    The termination notice we send basically says (pursuant to the contract incidentally) that if they don’t pay within 10 days of their receipt of the notice, then we may terminate the contract.  It doesn’t say the contract will automatically terminate.  Maybe that’s the difference.  But I will say in every instance where we have actually turned off service, then gotten paid, and reinstated the contract, we have never had a problem with the enforceability of the contract going forward.  In any event, I am confident that if you continue to render service afterwards, the protective provisions would still apply.
Bob K
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RESPONSE
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    You didnt read carefully enough.  I stated: 
    "If you continue providing service, monitoring or other service after that date you may not have the protection of your contract. 
    If you do send a notice of termination or cancellation and you then want to accept payment you must get a new contract or a written document signed by you and the subscriber reinstating the terminated contract.  Anything else is going to create confusion and the possibility that your contract is not going to be enforced because it terminated."
    So once you send out a termination, if that's what it is and it's clear, you have terminated the contract.  Without some document reinstating the contract, continued payment and continued service may not be pursuant to the terminated contract but simply a handshake.  It's just sloppy.
    The issue really turns on the wording of the cancellation notice, or termination notice, or notice of default - depending on what you call it and how it's worded.  
    I prefer a clear default notice that permits a cure by making payment, assuming that is the basis of the subscriber's default.  However, if you want to terminate, then I prefer there be no option to cure and no option to continue the service under the old agreement, which your presumable going to be suing on very shortly after sending the termination notice  - unless you really just want to forget about this subscriber.
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ANOTHER COMMENT
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Ken,
    We have used the term, “suspension” or suspend the monitoring. This has worked fairly well in the fire alarm business. Since we are required to notify the fire marshal in the case where we would no longer be monitoring, we notify the customer that monitoring will be suspended for non-payment and the fire marshal must be notified due to the suspended service. If this doesn’t get the bill paid, we notify the fire marshal that if the billing is not corrected by whatever date that we will have to suspend the service. The fire marshal contacts the customer and usually tells them they are out of business as soon as the monitoring doesn’t work. The bill usually gets paid fairly quick. If not then we go the cancellation route again with fire marshal notification. Any comments from you on this procedure?
Jason Holmes
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RESPONSE
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    Yes it illustrates clearly what I mention in my response to Bob.  You refer to your letter as a Suspension letter.  That clearly does not terminate the contract, it suspends it.  Presumably once the subscriber and you continue the payment and the service the suspension is lifted; the contract remains in effect.  With fire you have additional clout - the alarm system and services are necessary, required by law.  Technically the building should not be occupied without the fire alarm service and the Certificate of Occupancy can be canceled.  
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MORE ON FINE PRINT CONTRACTS FROM OCTOBER 20, 2014
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Ken
    In response to “John from NJ”, my contract’s boilerplate is 6 pages long, and I explain its length by asking the prospect to recall the last alarm contract they read – on the back of legal-sized NCR paper, in 4-point font, in halftone – and I tell them that I’ve printed it large for his/her benefit.  The contract does, after all tell the customer what I Will Do For Them, in addition to the disclaimers and limitations.  No One has refused to sign it, and most choose to simply initial each page instead of reading it.   No, I’m not about to insist they read it first if they choose not to.  Just initial it here.  And here.  And here.  And here…
Michael Mark
Designed Communications, Inc
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October 30, 2012 – COPS Monitoring
https://attendee.gotowebinar.com/register/6318369219588363265

November 5, 2014 – Metrodial           https://attendee.gotowebinar.com/register/5743009078427617281
 
November 6, 2014 - United Central Control   https://attendee.gotowebinar.com/register/2612275062661797378

November 12, 2014 - Statewide Monitoring https://attendee.gotowebinar.com/register/339270067719231489
 
November 13, 2014 - Centra-Larm Monitoring
https://attendee.gotowebinar.com/register/3930780819384477185

November 20, 2014 - AvantGuard Monitoring
https://attendee.gotowebinar.com/register/2150841918496668162

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