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Charging credit card after termination / Form for cancellation / Small v large companies July 14, 2018

KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE

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Charging credit card after termination / Form for cancellation / Small v large companies
July 14, 2018
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Charging credit card after termination
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Ken
            If the client terminated with us and their credit card is on file and we have permission to charge monitor fees, can we charge the early termination fees on that or just continue billing the monthly charge until the 3 years is up.  
Thank you,
John
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Response
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            It’s probably overly optimistic to think that the cc is going to go through or that it won’t be challenged. I don’t think you should continue to charge a cc once the subscriber has canceled unless the subscriber gives you continued authorization.  The Standard Form Agreements do have cc authorization and permits charging any obligation due, but I don’t think you should charge a disputed amount.  When the subscriber cancels I think you should consider the authorization revoked, even when it says it’s non-revocable.  
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Form for cancellation
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Ken
            Can you please tell me what form I am to use if a customer wishes to cancel their monitoring?  This is not for canceling the installation within 3 days but with a customer that is no longer under contract that wishes to terminate.  The cancellation notice only seems appropriate for canceling before the system is installed.
Sincerely,
Shane
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Response
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            The 3 day notice of cancellation is used only for those 3 days from when the contract is first signed. There is no standardized cancellation form.  If there was it would explain to the subscriber that the subscriber still owes for the contract balance, which is not likely to be what the subscriber has in mind.
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Small v large companies
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Ken
            I’d like to use this forum to invite all those smaller firms that have customers that have had bad experience from all those large public and so called public firms that have only a few stock holders have a majority interest in to comment on.   Throughout the years large firms with known names are under the impression that only they can provide the right job.   On the contrary, as we have all seen, many times they cannot complete the job as per their agreement, timely and within the price quoted at additional to the customer much more than going with that smaller firm that could.   Some people are under the belief that a known name firm is in a better position to do the job right.   In many cases despite what they may say about using their own employees to do the work, it is done by subcontractors.   I have seen many cases that jobs go on for years and these large firms did not come prepared to the inspection with all the forms required when they have all the resource to do so.   Let’s open this forum and hear from other that have experienced this and gotten customers because of it.
            Is bigger really better when it applies to this industry like some want to believe?
Name withheld on request.
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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
516 747 6700
www.KirschenbaumEsq.com