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NOTICE:  CONTRACT UPDATES AND "SALE"


    Welcome back to work on the first working day of the year, though many of you may be reading this while still on vacation.  To help you along with 2015 New Year resolutions, the Standard Form Agreements have been updated and it's time for you to update your forms.  Changes were made as recently as third week in December.  Only the All in One forms will be updated at no charge.  If you purchased an All in One on or after June1, 2014 you are entitled to a FREE UPDATE.  If you purchased an All in One between January 1, 2014 and May 30, 2014 your update is half price.  If you don't have the All in One forms. or if purchased in 2013 or earlier get the most current form before January 8, 2015 and receive $100 off each All in One form and $25 off the Disclaimer Notice.  Call our Contract Administrator Eileen Wagda at 516 747 6700 x 312 to arrange the discounted price.  If ordering for the first time please go to www.alarmcontracts.com to place your order and take the discount when completing the order form.
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Another Notice:  I am planning a few webinars that will be announced shortly.  A well known alarm expert will be presenting on a number of liability topics involving design, installation and services, important to alarm company owners, operation managers, technicians, insurance brokers and claims representatives.  Watch for the scheduled announcement.
    Another webinar will present on topic of alarm salesman perception.
    Yet another webinar will be How a small alarm company can get big.  I am looking for a few panelists for this one.  Anyone interested please give me a call.  I promise to do most of the work.
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MORE ON CANCELING SUBSCRIBER FROM DEC 8 AND DEC 25 2014
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Ken,
    Thanks again for this forum.  I wanted to point out how cancellations are processed for our clients in response to your “customer cancellation” topic.  Clients are not required to cancel in writing.  They can but are not required to.  If they send it in writing, we need a signature and their passcode (code used to identify themselves to us).  Most cancel by telephone and must do so by speaking to someone in the monitoring station where the lines are recorded.  They identify themselves, they give us the address, reason for cancellation and they authorize their cancellation with their passcode.  This conversation is recorded and kept for many years.  I believe that this recorded conversation must be as enforceable as any piece of paper we get from the client but I’m no lawyer.  I also assume that all stations are recording all calls at this point so this might help out those who are having issues with clients not wanting to pay their bills because they told them verbally but never followed it through with the written notification.  If you see any major flaws in our process I’d love to hear about it.
Regards,
Kevin Buckland, Manager / Client Satisfaction
True Steel Security
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RESPONSE
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    Your policy is focused on protecting yourself when you discontinue services upon request of the subscriber.  Written confirmation would probably be a better practice and probably easier to find if you needed to prove the subscriber request.  A follow up letter to the subscriber confirming termination of service would also be a good idea.
    The prior articles concerned the alarm company wanting to terminate the subscriber, not because the subscriber was in default but because the subscriber was more trouble and bother than it was worth.  
    My response to that issue, first published Dec 25 2014 is worth repeating here:
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    Just as the subscriber can't just decide to cancel the contract with impunity, neither can the alarm company.  In fact, a provision that permits one side to terminate "at will" and without penalty probably renders the agreement illusory, and illusory agreements are unenforceable in the sense that both sides will be permitted to terminate at will.  As I just wrote that government contracts came to mind.  Those contracts typically permit the government to cancel and pay the contractor only for work performed, no future profit or damages.  That would undoubtedly apply to government contracts, including those with alarm companies.  But I think that provision is unique to government contracts.
    In any event there is nothing in the Standard Form Alarm Agreements that permits an alarm company to terminate the contract just because the subscriber is a pain in the butt.  There are however a few provisions that assist.  

  •     You can raise rates 9% each year.
  •     You can charge for any service calls that are not for ordinary wear and tear.
  •     You can perform your service calls only during the specified hours, 9-5 Monday - Friday.
  •     You can charge for excessive calls or data usage.
  •     You can default the subcriber if a payment is not made on time.  You are not required to invoice your subscriber, although if you have been doing so then you probably would need to continue if you want to declare a default just after payment is due.  
  •     You can terminate prior to a renewal period.
  •     Assign the subscriber to another alarm company.

        If you decide to terminate a subscriber without legal cause be sure to notify the subscriber that service will terminate at a particular time, giving the subscriber enough time to replace your service, whether it's monitoring or service or whatever you're providing.  You should release all codes and passwords because if you decide to breach the agreement you will be liable for the difference between what you agreed to charge and what the subscriber had to pay to replace your service.  You don't want to increase that expense by refusing to provide the codes.  
    Probably be better to assign the subscriber to another alarm company; then you're off the hook.  Of course all of the above assumes you have a Standard Form Agreement, hopefully the All in One.  If not, better read your agreement carefully to determine your rights.
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COMMENT ON SELF HELP FROM DEC 9 2014
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Ken
    Locking panels does more than prevent hostile take overs from occurring. Information, such as your receiver numbers and your programming, should remain protected. I suggest locking panels until you have the opportunity to default the panel. This also removes any liability from existing programming that could come back and haunt you. For instance; if you cross-zone and the new company has no knowledge about cross-zoning, they are liable to lay blame for a future missed burglary onto you. The client may not take it to court, but may slander your name. By protecting your receiver numbers, you are also protecting all of your clients from unscrupulous dealers. 
Roger D. Score, President
Arizona Alarm Dealers Association
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COMMENT ON MITCH REITMAN [WELL DESERVED I MIGHT ADD]
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Ken,
    Thank you for your service to our industry!  Happy New Year!
    Also, I've known Mitch for years now and he too is a great asset to our industry.
Kyle Beller, President
BAT Security
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