KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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Is it greedy to enforce your contract  / Alternatives to alarmnet
August 14, 2019
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Is it greedy to enforce your contract
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Ken,
            I would like to find out how other alarm companies are handling the situation when customers cancel their monitoring because they “SAY” they’re moving. we seem to be getting a lot of them lately who still have months even years left on their contract.  Honestly I feel greedy holding them to a contract if they are in fact moving and we do ask them to pass our info along to the new owners. 
            Sometimes we get the new people and sometimes we don’t but my question is I think a lot of people just say they’re moving to get out of the contract when they’re really not. is there something we would be allowed to ask the customer to prove that he is in fact moving? I would like to know how other alarm companies handle the situation. Thanks a lot
Name withheld
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Response
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            Is it greedy to enforce your contract?  Are there extenuating circumstances when you should excuse your subscriber’s performance, i.e. let them terminate the contract early?  Maybe there is an illness; death; catastrophe and premises are destroyed; or maybe the subscriber is moving.  How about, maybe the subscriber can get your service for less money, or subscriber bought a dog and doesn’t need the alarm anymore or maybe they just don’t want it anymore?  
            If these excuses trouble you then maybe you should not have term agreements; maybe your contracts should provide that the “subscriber can cancel any time it wants for any or no reason at all”.  
            There is a difference between compassion and stupidity.  That may be too harsh.  Let’s substitute stupidity with economic suicide by a thousand cuts.  
            I know some of you believe that if you simply accommodate your subscribers, no matter how far they want to push you, the build-up of goodwill outweighs taking a tough stance with your subscribers and insisting on full contract performance.  I suppose there is some truth to that philosophy, but I also think that you enter into contracts with the expectation that your subscribers are going to perform.
            There may be legitimate reasons for letting your subscriber out of the contract.  If you let the law guide you then you will find that there are, in fact, very few excuses to early termination without consequences.  Illness and death are not grounds for termination [except for PERS contracts].  Change in circumstance, such as getting a dog, installing a fence, hiring a guard, are not a legal basis to cancel the contract; neither is moving.  
            If you use the Residential All in One the contract has your remedy spelled out.  The subscriber is liable for 80 percent of the balance of the term of the agreement.  If you have to engage counsel, you get legal fees too.  You do have to make a cost benefit analysis before engaging in collection work, but when you have enough of it and there are years left on the contract, it makes sense to pursue collection.  If you use the Standard Form Agreements K&K will represent you through the arbitration process.  If local counsel is required the arbitration rules provide for local counsel’s fees to be added to the award.  To engage K&K on collection matters contact Kathleen Lampert or Miranda Diaz at 516 747 6700 x 319 or email Miranda at MDiaz@Kirschenbaumesq.com
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Alternatives to alarmnet
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Ken,
            I avoid using AlarmNet or cell based communications at all cost. Learn my lesson a few years ago with the 3G system end of life.
            Fortunately we are in the NYC-Long Island area and have NEARNET. It's a proprietary radio network dedicated for alarm use only, the unit has full contact ID via data capture. The communicators cost less than Alarmnet, and there is no risk of obsolescence, and the units are faster to install and trouble free. 
            Most of my clients don't want smartphone apps anyway, or I talk them out of it. And if they do then I use Alarmnet via internet with Nearnet as backup.
Anthony Losquadro
Consumers Security Group Inc
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Ken,
            This will continue to be a problem with Cellular carriers.
            Most Local central stations will have an existing AES network that alarm companies that do not want to put out big $ to start their own network can piggyback on.
If the central station you use does not have an existing AES network, look around.
AES radio’s are not only transmitters but also repeaters. There are few problems with AES.
            I gave up on Alarmnet many years ago when they first stated they were taking down towers for the 7720ULF.
            VOIP is not reliable. Pots line are almost non-existent.
Respectfully,
Mark E. Swanson, Technical Coordinator
Communication Electronic Systems/CES
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Ken​
    We, the dealers, are where the rubber meets the road.  Honeywell, AT&T, Verizon, etc. could care less about our trivial problems with communications and customer service. They are in bed with each other. Moving units and profit are their only motives. They make me sick. Please post anonymous. Please post anonymous, or I will most likely lose my dealer status which I value less and less each year.  
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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
www.KirschenbaumEsq.com