pursue collection or walk away / NYS License warning May 2, 2018

KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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pursue collection or walk away / NYS License warning
May 2, 2018
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pursue collection or walk away
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    The most successful collection practices involve quick action by your in-house efforts and getting the collection matter to whatever professionals you use for collections.  If you have our Standard Form Agreements you can send the collection cases to K&K.  Contact our head paralegal Kathleen Lampert at 516 747 6700 x 319 or KLampert@Kirschenbaumesq.com.  We will commence arbitration and work with your local counsel to confirm the arbitration award if necessary.  Once your subscriber fails to make payment in accordance with its historical payment history you need to take notice and then action.  Your internal communication should go out if 30 days past due.  The case should be sent to my office within 45 to 60 days overdue.  We will save the account if it's salvageable and get the case started within days of receiving it from your office.  
    A collection department is most successful when it has enough cases to balance out results and there is a firm policy of enforcement.  You can't judge success on one or even a few cases.  A practice of sending over your delinquent accounts should result in a positive cash flow and saving accounts as well.  But not every company is set up to pursue its collection cases.  
    What is the best course of action to take when your subscriber breaches your contract?  Maybe you've done everything right, bent over backwards to please this subscriber; maybe the subscriber is terminating with you for reasons entirely unrelated to your performance.  A better price; a friend called; your former employee called and offered to service them [that should wake you up].  Maybe they even owe you for past monitoring or service calls.  Maybe they are just deadbeats and are thumbing their nose at you.
    You have issues to deal with.  Emotional and economic, though they may be related.  As a level headed business person, which you should strive to be, you need to think with a clear mind and make decisions that will ultimately benefit your business and you.  Decisions based on emotion rarely end up well.  They get played out fast.  Clients that call me to "sue the bastard" immediately, no matter the merits or the cost of legal fees, because they are so worked up at the moment, typically calm down after paying a few months' invoices for legal fees or dealing with the consequences of litigation based on emotion rather than sound business judgment.
    I am not suggesting that you be a pin cushion or push over.  Rather that you take a moment to carefully assess the merits and risk / rewards of your actions.  Sometimes I ask clients to wait a few months before having me initiating litigation.  They usually forget about the case.
    Maybe you get two customers a year who really rub you the wrong way and breach the contract.  Sure you can sue them, but is it really worth going after someone who pays $20 RMR and has two years left on the contract?  If you have to spend one day in court you'll be miserable.  If you have to respond to a consumer complaint your cost will be more than the potential collection.  An adverse posting on social media could cost you more than the case you walk away from.
    There are plenty of reasons to pursue your subscribers for their breach of contract.  You don't want a reputation of roiling over.  Your subscribers may talk to each other and your competitors will start picking you apart like a vulture.  The balance of the contract and equipment value, if you're entitled to include it, may be a big enough number to make it worthwhile.  It's just as important to consider the customer because getting an award or judgment is the easy half of the battle, collecting is the hard part.  Debtor-creditor laws make it very difficult to collect from consumers.  At K&K the staff is trained to evaluate each case when it comes in.  We will let you know if we think you should limit your pursuit or walk away.  Try to take the advice, you'll be glad you did.
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NYS License warning
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BIG CHANGES TO THE NYS ALARM LICENSE LAW, AS OF FEBRUARY 2018
DON'T RISK A $10,000 FINE!
The new license law amendments (as of February 2018) affect ALL alarm companies licensed in NYS or doing business in NYS and companies that think they don't need to be licensed as I will explain later.

Business of Installing, Servicing or Maintaining Security or Fire Alarm Systems Article 6-D, General Business Law and Security and Fire Alarm Systems, Rules and Regulations, Title 19 NYCRR. Dated February 2018

This article is not meant to offer legal advice nor is it a strict interpretation of the licensing law. It is not the entire law, only excerpts are included for the purpose of this article. It is based on my experience and feedback from members of MBFAA. If you want “legal” interpretation or advice please contact the MBFAA’s legal counsel Kenneth Kirschenbaum, Esq. 516-747-6700 x 301, www.KirschenbaumEsq.com

I suggest that you download the following license law https://www.dos.ny.gov/licensing/pdfs/SECURITY.pdf so you  can follow along, understand, and be in compliance.

YOU have to be licensed and HIRE LICENSED SUBCONTRACTORS to do the work.

EVERY COMPANY NEEDS TO BE LICENSED - EVERY COMPANY EMPLOYEE (ASSISTING) NEEDS TO BE DOCUMENTED. EVERY SUBCONTRACTOR HAS TO BE LICENSED - EVERY SUBCONTRACTOR EMPLOYEE (ASSISTING) NEEDS TO BE DOCUMENTED.

195.1 Definitions:

"Conduits for these systems" has been removed from "not included." In the past an alarm company could/would hire ANY "cabling company" or "subcontractor" to install conduits and wire. No more. The company installing just the conduits or running wires NOW needs to be licensed under the Alarm License law.

Need to get your license? Check out our Alarm License Class Schedule starting May 12, 2018 atwww.mbfaa.com

Installation of an alarm system includes, but is not limited to networks!

Network- A network, also referred to as a computer network, consists of two or more devices that are linked together through any means, including but not limited to, ethernet, wifi, or serial bus, so that they can communicate with each other and thereby exchange commands and share data that may operate hardware and utilize other resources for the operation of a security, video, access and alarm detection and/or notification system.

NETWORKS! I thought computer people did networks. Well, if you're installing any sort of a network for IP cameras, fire alarm systems, burglar alarms, access control, you NOW need to be licensed! Networks are the future and the licensing law addresses the fact that alarm guys that install networks for the aforementioned devices NOW need to be licensed.  YOU have to be licensed and HIRE LICENSED SUBCONTRACTORS to do the work. We are talking about security here.

Sorry computer guys... you're in the SECURITY business now and you need to have schooling, background checks, fingerprints, and a LICENSE. And alarm companies who hire subcontractors need to hire licensed companies.

 Need to get your license? Check out our Alarm License Class Schedule starting May 12, 2018  at www.mbfaa.com.

§195.2 Need for license:

(a) An individual, firm, company partnership or corporation must be licensed:
(1) if it installs, maintains or services alarm systems, including, but not limited to, such items as [the] detectors, control devices and alarm communication systems, conduits and associated wires of alarm systems; or
(2) if it holds itself out to the public as being able to do so. This shall include, but not be limited to, selling alarm systems to consumers when the installation, maintenance or servicing of the alarm system will be subcontracted to or otherwise performed by another;
(b) A security and fire alarm installers license is required for the installation, maintenance or servicing of the following:
(1) a closed circuit television system (CCTV), or video surveillance system,  if such system is used, either full-time or part- time, for the detection or monitoring of intrusion, break-in, theft, movement, sound or fire; and
(2) electrical entry systems which detect and/or provide notification of intrusion, break-in, theft, movement, sound or fire regardless of the number of entry points.

Need to get your license? Check out our Alarm License Class Schedule starting May 12, 2018  at www.mbfaa.com.

New York State
APPROVED 81-HOUR
ALARM LICENSE COURSE

MAY - JUNE 2018
Saturday, May 12 - Sunday, May 13
Saturday, May 19 - Sunday May 20
No classes Memorial Day weekend
Saturday, June 2 - Sunday, June 3
Saturday, June 9 - Sunday, June 10

*Click here to REGISTER NOW - CLASSES SELL OUT FAST!* 
http://www.mbfaa.com/NYS_License_Course_MBFAA.htm

New York City / Long Island
Convenient to all of New York State and neighboring states!

FEBRUARY 2018 CHANGES TO ALARM LICENSE LAW MAY REQUIRE
1099 SUBCONTRACTORS - NON W-2 EMPLOYEES
CABLING COMPANIES - NETWORKING COMPANIES
TO HAVE THEIR OWN ALARM LICENSE
GET YOURS NOW - DON'T RISK A $10,000.00 FINE!

Alan Glasser, Executive Director
METROPOLITAN BURGLAR & FIRE ALARM ASSOCIATION OF NEW YORK, INC.
PO Box 54, Brooklyn, New York 11204-0054
(718) 894-6712 w eFax (718) 228-7940
e-mail mbfaa.ny@gmail.com w web site www.mbfaa.com

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THE ALARM EXCHANGE

This area is reserved for alarm classifieds, alarm company announcements, solicitations, offers, etc. Those wishing to sell or buy; borrow or lend; dealer program or dealer; central stations; insurance brokers; business  brokers, insurance companies. Equipment to sell; looking for employees; subcontractors; mergers;

Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301
ken@kirschenbaumesq.com
516 747 6700
www.KirschenbaumEsq.com