KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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Can you shut down delinquent customers alarm system / Waiver for code access
June 29,  2021
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Can you shut down delinquent customers alarm system
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Ken
            Is it legal to remove a customer’s code so they cannot use their alarm until they pay their past due invoice, say over 90 days?
Don S
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Response
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            There are a number of things you can do when your customer fails to make payment, but shutting down the system is probably not one of them, though like most issues, this can get complicated. 
            If the system is leased then you can shut it down because you own it.  However if the system is commercial fire you may have to get permission from the AHJ to shut down monitoring or remove the system.  You may not want to shut down a system that provides life-safety detection, such as environmental monitoring.  Even though the All in One permits shut down without notice in the event the subscriber defaults in payment, it's a better idea to give some notice.
            If the system is owned by the customer then you can't terminate all functionality because the system belongs to the customer and at the very least should operate a local alarm.  If you have the All in One you can terminate monitoring and you don't have to respond to a service request.  I would give some notice before shutting off monitoring, even if it's a read out on the keypad, "monitoring terminated" or "no monitoring". 
            If you are going to pursue collection against the subscriber I prefer that you continue monitoring service and get a history of the alarm so that we can show that the subscriber continued to use the system that the subscriber claimed didn't work. 
            My usual response to this issue when asked is you can turn off the monitoring but you have to leave the subscriber with a local system if the system is owned by the subscriber.

             Refer the defaulting customer to K&K for Collection Department.
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Waiver for code access
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Ken
            Do you have a waiver form for when I customer wants the access code to fire alarm panel programming functions
Scott D
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Response
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            No special form is required.  Texas requires that the code access be given but only if the subscriber signs a Waiver and Release.  If you want that form contract our Contract Administrator Eileen Wagda at 516 747 6700 x 312 or EWagda@Kirschenbaumesq.com.  Cost is $150.00 and the form is not on our Order Page, so call Eileen.
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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