November 5, 2010
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Question:
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Hi Ken-
With regards to credit checks, if a credit check is a criteria for doing business with a customer or for the customer paying a discounted price for a system, should the credit check be done prior to execution of a contract with the customer (if the installed price is dependent on the customer having a certain credit score) or should the contract state that the contract is only valid if the customers credit score comes back at or above a certain number after it is turned into the office and checked at that time? Does it matter?
Also, many cell phone companies will still do business with customers that have a lower credit score, they will just charge them a refundable deposit that is refunded after their contract is fulfilled. Do your contracts have provisions for something similar to this that still give the customer an option to have a system installed even if they don't meet a certain credit criteria? Example would be that the customer can pay an additional $400 up front that will be refunded if they fulfill their 3 year monitoring commitment (if they don't meet an established credit score).
Thank you,
Brian
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Answer:
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If a credit score is required before you will perform under the contract then that provision should be in the contract. You won't want to go to the trouble of getting, and paying for, a credit score if you don't have a signed contract. You'll also probably want to wait until the 3 day cancellation period expires.
Alarm companies that are concerned about credit scores are probably doing a lot of financing or are in a dealer program that requires that the subscriber contract be sold to the Program. Companies that specialize in free systems are also concerned with credit scores because they are fronting the cost of installation hoping to recoup the investment over a period of time.
I suppose a credit score can help you identify a real dead beat, and you may not want to extend any type of credit to someone who is likely to stiff you. Competition being what it is in this industry however, it's tempting to accept any and every deal you can get.
You can cover yourself in the contracts. Mine don't address credit scores, and I don't encourage heavy financing options or dealer programs that suck up all your subscriber contracts.
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comment on lead paint
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Ken,
I’ve been through the EPA RRP training. Prior to the training I also thought kids primarily got lead poisoning by simply eating lead paint falling from neglected buildings. I was shocked to learn the many ways kids are exposed, dust being the greatest cause of lead poisoning. The main issue with kids under 6 yrs old is that their neurological systems are many times more sensitive to lead poisoning that adults. Go to www.epa.gov/lead/pubs/renovaterightbrochure.pdf for some basic information on the problem. You can argue about how the EPA implements & enforces the law but you can’t ignore the fact that lead poisoning effects kids. Whether you get certified or not please spend the time to become educated on the real risks to kids. None of us wants to poison our kids, our grandkids, or any kids due to ignorance. If we all were responsible and did “the right things” all of the time there would be no need for laws.
Ben from IL
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to John from NJ.
Voice your complaints to. Senator Frank Lautenberg. He was the sponsor and voted for this act.
Senator Lautenberg’s Newark office is located at:
One Gateway Center
23rd Floor
Newark, NJ 07102
(973) 639-8700
Hart Senate Office Building,
Suite 324
Washington, DC 20510
(202) 224-3224
I also suggest you read the whole act as there is more to this than just 6sq ft, 2sq ft hepa vacs. www.epa.gov/lead. And by the way, where were you when ESA arranged the day in Washington DC to meet and discuss this with your elected officials? Or send in your comments on the regulations? The form letters were given to all the supply locations and on NJBFAA & ESA's web site for download. After 30 years maybe you would have some incentive to get involved rather complain after the fact.
njspectrum