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When can you discard paperwork?
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QUESTION:
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Ken,
I have a question concerning old customer files & contracts. Over the last 20 years we have numerous systems that have been cancelled. Customers leave due to moving, death, financial situations or just plain attrition. How long should we hang on to old contracts and system information that is customer specific such as monitoring and service contracts keyholder info and other customer specific information We keep an actual database of all systems and system information including addresses but would like to eliminate a lot of old paperwork if not needed. As with any customer related information any discarded paperwork is shredded and destroyed.
Thanks for your input
Dennis P. Monas
Innovative Securtiy & Technology
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ANSWER:
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This topic was covered in an article you can read at http://www.kirschenbaumesq.com/earticle200.htm
You can find answers to many topical questions at http://www.kirschenbaumesq.com/emailarticles.htm
To find the topic of interest use Edit, Find, Find In Top Window, or Find and Replace, and you will be taken to the article.
You can safely discard subscriber records 6 years after the subscriber is no longer your subscriber, unless you know of potential or actual claim.
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Can you be forced to reveal your codes?
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Question:
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Hi Ken,
I recently had a customer change to a $10.00 per month monitoring company...The customer had me remove our code and reset the panel to the factory code. They have no service people, etc. The customer forced me to remove my code...insisted I was in trespass if I did not...
Your thoughts
John Minerva
President
Executive Electronics Of Southwest Florida, Inc.
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Answer:
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Unless there is a specific statute in your jurisdiction that requires disclosure of codes you have no obligation to reveal your code. My Standard Monitoring Contract provides that you will default the code to manufacturer's code or give the code only once the subscriber has completed full performance of the monitoring contract, which is for 5 years. You would not be liable for "trespass".
How you should have responded to the request is another matter. By switching to a discount monitoring company the subscriber will save for $6 to $12 a month [typically] but will give up service. By being cooperative you may be able to pick up a service contract and price it to include your lost revenue on the monitoring. You also need to have in place carefully considered office policy regarding telephone inquiries and requests for assistance and service from the subscribers who have left you for discount monitoring companies. These subscribers need to pay for any form of assistance and you need to make that clear.
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Should you discontinue service before suing a subscriber who is in default?
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Question:
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Ken
Quick question when you sue a deadbeat for non payment and you have an activity report that shows the system is still up and running even a year
after he has paid us and the attorney says why did you leave it on?
Besides saying the deadbeat did not let us in to remove the equipment what is the proper answer as to why we did not de program the system?
Don't say we could not get into the panel remotely, I know this answer already. What else can I say?
Thanks
Mike G
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Answer:
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When you have a aggressive collection policy, as your company does, you need to consider several issues before discontinuing service. First is whether your subscriber is going to be in business and be able to pay a judgment if we win the collection case. No point continuing to monitor a subscriber who is not going to be around by the time we get the judgment. Next, why isn't the subscriber paying? If it's because the subscriber claims the system isn't working or not being used, then obviously if we can prove the system is being used that would be important information at the time of trial. Continuing to monitor also makes it easier to reinstate a subscriber in the event that is an option at or prior to trial as a settlement of the matter. If you terminate service and the subscriber needs the service it will force the sub to look for another alarm company. That usually makes taking the sub back difficult. The cost of continuing monitoring is negligible, especially if you operate your own central, as I know you do. But even dealers who pay for wholesale monitoring are looking at nominal charges that will accrue until the collection matter against the subscriber is resolved.
As a matter of law, if your subscriber defaults, you are not required to continue your performance of the contract, so you can cancel monitoring.
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PERS
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Hi Ken,
I have a few comments on the whole PERS issue.
One major thing that has been keeping me away from installing any PERS is the way the system communicates. These companies installing these things are not doing it right. I've seen systems hooked up to the phone jack and the original phone plugged in to the pers unit. This is an absolute joke! Where is the line seizure? (NOT!) if the phone was knocked off the hook in another room guess what?? no dial tone. These things also won't alert you (like a real alarm control will) if there is a line fault (tlm) Talk about a liability issue. Do you think that after grandma fell over, had a heart attack, pushed her button and no one responded, that her grandkids who just paid $1000.00 for a PERS system (so grandma could be "safe") that their not going to have a "field day" with you and their lawyers?
Thats why we install an alarm control panel, put the keypad on the door of the thing, program some wireless (supervised) panic buttons, mount the cell unit, and now you have a "Real PERS" system.
Anyone who installs a PERS system on a VOIP line is insane! Your just asking for a lawsuit. What if the power goes out (and there is no ups?) what if the provider takes the system down at night for software upgrades or maintenance? What if your computer "locks up" the VOIP modem? What if the modem goes bad? As you can see, there are many things that can happen here and thats why I just won't do a PERS system.
One last input on VOIP. Did you know that if your using VOIP (per DSC, thats the alarm panels we use) your supposed to use 4x2 report formats not contact ID! The problem is that VOIP changes the signal by compressing it and thats what the alarm panel does when it sends out contact ID. As you can see this is where your signal might get "scrambled" which has happened to me before I knew this. I was getting report codes that I didn't even program in to my panel! When I changed it to 4x2 I have never had any more issues.
When 2 signals are "redefined" then mixed together thats where you will have a problem.
Thanks for all you excellent input in this industry!
Greg
Walworth County Security Alarms, LLC
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Ken—
re the Q&A on POTS Lines VS. IP (Internet Protocol ) Network ‘Cyber” Insurance
Since my of 2/25/10 asking for a vote up or down-- on using the terminology of POTS Line vs. IP Network to separate Analog from “All Digital” IP Network , I found most agree on the wording to understand the switching of the communications circuits.
I was asked how wireless fits into the picture? From a Insurance standpoint, my view is that Cell Phone wireless requires IP Network Insurance as it works over the IP Internet . Radio (2way) can be covered by either General Liability or a IP Network Insurance Policy provided their is not a broadcasters Liability exclusion.
One of the most asked questions was—How can your IP-e Network Insurance program provide coverage for Worldwide IP Network Liability, Identity Theft (including Biometric Access Control ) Crime Liability, Loss of unauthorized funds transfer over a IP Network. Or RMR loss of funds from Virus Breach of network. And also extend to network media (e-commerce) e-mail and web sites copyrights infringement, Libel, Slander, Personal Injury and False Advertising.—All under one Policy???
---The Good news is for the first time one Insurance IP-e Network policy does extend to all the above exposures and MORE .
The understanding of these exposures and coverage’s under ONE IP-e Network policy is probably why Bart has a headache. After all he ask me to define for him and the alarm industry what is cyber liability.
My thanks to all for your input and to KEN for his great (Media e-commerce) e-mail newsletter. For more information on IP-e Network Insurance and all other Insurance coverage’s for the alarm Industry please contact