KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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subscriber needs notice of termination / form for ACH and Credit Card / License Holders
May 12, 2020
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Does subscriber who replaced your system need notice of termination  
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Ken
          I have a long time customer who is actually a friend of the family.  Their alarm system stopped sending its weekly test signal.  I reached out to them to find out if they had any phone or cable service work done, or if they were having any phone trouble. They said no.
          Long story short, they apparently had some renovations done in the house that somehow included replacing the alarm system. When I went on site I found a new panel and keypads. She, the wife, claims she had no idea that the renovations included a new alarm system and alarm provider.  It very well could have all been handled by her husband.
          I have no hard feelings, however do I still need a letter or email asking to have monitoring cancelled? Their contract was up in July anyway.
 Bob K
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Response
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          You don’t indicate whether this subscriber is still paying you for the monitoring service.  Presumably you are still paying your central station.  You should terminate service with the central station immediately.  You should send a letter to the subscriber simply stating that in view of the fact they have replaced the system you are no longer providing monitoring or other services.  You don’t have to mention money, unless you want them to pay you through the date of your letter or the balance of the contract, which is almost over.
          I confess that my first inclination was to advise you that no letter was necessary.  The subscriber abandoned you, replaced the system, and could not reasonably expect that you were continuing the monitoring service.  You had a conversation with the wife about that already.  You don’t state whether this subscriber has a working alarm at this time or if it’s being monitored.  That is an issue that may be significant if the subscriber suffers a loss, particularly before the July termination date in your contract.  The subscriber or its insurance carry may decide that you have some exposure.  Sounds ridiculous, I know, but lawsuits with even less merit get started and have to be defended.  A letter will “seal the deal” that your service, and responsibility, is over. If you gave an Insurance Certificate you can also notify the subscriber’s insurance carrier, though you don’t have to under these circumstances.
          Your letter doesn’t have to be sent certified; save the time and money.
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Is there form for ACH and Credit Card automatic recurring charging
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          Yes.  You can and should be getting ACH [a payment direct from the subscriber’s bank to your bank] or credit card payment.   The authorization should be perpetual until canceled by the subscriber.  K&K provides you with this form for FREE when you purchase any of the Standard Form Agreements.  There is no separate charge for the form [but don’t ask for it if you aren’t buying a Kirschenbaum Contract ™.
          I have found that accepting payment by credit card, or ACH, has some expense attached, but it’s well worth it.  A bird in hand is worth two in the bush.
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License Holders
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          Can a company engage a license holder to license the company?  The simple answer is, yes.  As a matter of fact, the company has to rely on an individual to hold the license.  Some person must qualify for the license on behalf of the company.  The license holder will have to be someone who meets all of the qualifications and requirements of the licensing statute.  The relationship between the license holder and the company will be dictated by the licensing statute and is memorialized in a written Qualifier Agreement, a Standard Kirschenbaum Contract ™ form called Qualifier Agreement ®.  
          K&K assists license holders and companies.  You are able to list on The Alarm Exchange without charge, or you can confidentially register with K&K License Coordinator Eileen Wagda by calling her at 516 747 6700 x 312 or emailing her at EWadga@KirschenbaumEsq.com.
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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.
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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