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 ********************** Billing cycles
April 5, 2023 ********************** Billing cycles ********************** Ken We love the emails. Quick question: in Massachusetts is it legal to bill for monitoring annually. I am hearing of more and more companies doing this in the Massachusetts area. I know this has been an issue in the past with company's going out of business after collecting the annual monitoring. Anon ************************** Response ************************** I am not aware of any prohibition regarding billing annually or any other cycle in advance. The Standard Form Agreements provide for a selection from monthly, quarterly, semi-annually and annually. Then the itemized services call for the monthly amount, no matter how often it’s billed. I think what you should keep in mind is that you are collecting for services to be rendered. I don’t know that any state has determined that you are in essence receiving funds that should be held in trust. I suppose a company that engages in a scheme to collect for services it doesn’t intend to provide could attract the attention of the state’s attorney general. I don’t think however, that collecting fees in advance would necessarily be treated as trust fund money or as a fraud just because you are unable to provide the service or go out of business. I don’t know of many alarm companies that have gone out of business and by that I mean just closed their doors abandoning their customers. Most alarm companies that have found themselves behind the eight ball manage to sell or merge or find another alarm company to take over the customers. In all my years of representing alarm companies I can think of only one time when an alarm company asked me to find another alarm company to just take over the accounts. Every other time it’s been a sale. Whatever cycle you choose make sure you stay ahead of your customer, sending out your invoice in advance. Your customer should already be in default if it hasn’t paid into the new billing cycle. Just a reminder, when you use the Standard Form Agreements K&K’s collection department will assist with you collections. Contact Kathleen Lampert at 1 516 747 6700 x 319 or KLampert@Kirschenbaumesq.com ************************** STANDARD FORM AGREEMENTS: To order up to date Standard Form 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 www.kirschenbaumesq.com/page/alarm-articles updated daily ************************* THE ALARM EXCHANGE - the alarm industries leading classified and business exchange - updated daily. https://www.kirschenbaumesq.com/page/alarm-exchange ************************* 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 / 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. ************************** 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