KEN KIRSCHENBAUM, ESQ ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE You can read all of our articles on our website. Having trouble getting our emails? Change your spam controls and whitelist ken@kirschenbaumesq.com ****************************** Line usage charges from CS December 21, 2024 ************************* Line usage charges from CS ************************* Ken, Do you have good verbiage for me to add to my contract to pass along Monitoring Receiver Line Usage and associated fees? Our Central station is starting to charge usage back to us as the dealer on our monthly bills. On another note, can the central station start charging for line usage? Name withheld ************************** Response ************************** Central stations enter into Dealer Agreements with the dealers to monitor accounts. Typically the Dealer Agreement will specify the “basic charge” for basic monitoring. Some monitoring has predictable added expense, such as UL certificate issued by the CS, opening and closing or other supervised monitoring, and these will increase the basic charge, but the expense can be ascertained and agreed upon when the Dealer Agreement is entered into. Some monitoring involves third party monitoring; generally pass through monitoring provided by Alarm.com, Napco, AlarmNet and others. These pass through charges are usually also predictable and added to the cs charges [sometimes paid directly by the Dealer to the third party]. A generally accepted exception to the agreed to charges are the charges for excessive usage. Run--a-way signals are a good example. The cs has the right to charge for excessive signals, and that “right” will be found in the Dealer Agreement. The good news is that the right to charge for excessive signals, and to terminate the subscriber’s monitoring contract, will be found in the Kirschenbaum Contracts™ entered into with the end user – subscriber. I am not sure where the right to charge for Line Usage comes in, either as an add-on to the basic charge or in place of the basic charge. I am also not clear where the cs would find the authority to change billing practices and rates, because it’s not in the typical cs Dealer Agreement. Just as a Dealer can’t unilaterally decide to charge billing charges to a subscriber outside of the contract, the cs can’t unilaterally decide to change the deal with the Dealer in the middle of the Dealer Agreement, unless that right is reserved and found in the Dealer Agreement. I have warned Dealer to get and insist on the Rider to Central Station Dealer Agreement. If you don’t it that form, and if you haven’t gotten it signed with your cs, then you need to read your Dealer Agreement carefully before challenging rate increases; the cs may have every right to the increase, contractually. Has anyone else experienced “Line Usage” charges and is this a common way for a cs to determine its charges; and is the Line Usage in place of fixed basic charge or on top of it? ************************* STANDARD FORMS Alarm / Security / Fire and related Agreements click here: www.alarmcontracts.com *************************** CONCIERGE LAWYER SERVICE PROGRAM FOR THE ALARM INDUSTRY - You can check out the program and sign up here: https://www.kirschenbaumesq.com/page/concierge or contact our Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304. *********************** ALARM ARTICLES: You can always read our Articles on our website at ww.kirschenbaumesq.com/page/alarm-articles updated daily ******************** THE ALARM EXCHANGE - the alarm industries leading classified and business exchange - updated daily ************************* Wondering how much your alarm company is worth? Click here: https://www.kirschenbaumesq.com/page/what-is-my-alarm-company-worth ****************************** Getting on our Email List / Email Articles archived: Many of you are forwarding these emails to friends or asking that others be added to the list. Sign up for our daily newsletter here: Sign Up. You can read articles and order alarm contracts on our web site www.alarmcontracts.com ************************** 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
