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comments on lock out codes
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Ken,
    I DO use lock out codes in my systems.  I use it ONLY as protection against someone who may constantly shop around for the best price year after year, and then only to get paid on the remaining contract.  I won’t give out my dealer code, but I will default the dealer for a legitimate reason, and more often than not, I will do it at no charge.
    I have been in the alarm business for over 34 years and I’ve seen it all.  My philosophy regarding customer retention is very simple.  If you install a quality system using quality parts you shouldn’t have many issues.  If you do have service issues and you address them properly in a timely fashion you’ll keep your customers satisfied.  I have never believed that another alarm company “steals” your customers.  You “lose” them due to poor customer service and for not developing a relationship with them.  If you can’t service your clients then you shouldn’t be surprised when they want to bail out and ask you to unlock their panel.  And you should be prepared to let them go if you’re not prepared to service their needs properly.
Bob Klein
RK Electronic Services
Monroe, CT
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Ken,
    When Mississippi enacted a residential license law, it included a no lock out provision except for leases and anyone still owing money under contract to the installing company.  Otherwise, by law, they are ordered to unlock the panel at the homeowners request.
Keith Elliott, President
Ms Alarm Assn.
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Response
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    My Standard Form Contracts provide that the codes remain the property of the alarm company.  Once the subscriber completes performance of the contract the alarm company will provide the code or default the panel to manufacturer's code.
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more comments on lock out codes
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Ken,
    It sounds like ANON is referring to a system that is installed on behalf of the builder, not the end user. Does not appear there is a “subscriber,” with a contract,  that the company is employing the lock-out code.
    What other system in the home is installed with an assumption that you must use the installing vendor for on-going service?  HVAC? Garage openers? Electrical, plumbing?
    If I were ANON, I would encourage every potential customer that is originally installed by this company,  to call their builder and insist the builder pay the “unlock fee” on behalf of their new homeowners to allow them to choose whatever vendor they prefer for service.  Either that, or ANON should replace the locked out board with a new board, at a nominal or no cost to the customer,  and send the old one back to the manufacturer to be unlocked and placed back in inventory.  Lock out codes are another reason the industry is perceived to be untrustworthy by the general public.  It is a crutch,  and every company that uses one knows it.
Vince Raia
EMC Security
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Ken –
    I and my management team really appreciate your forum correspondence, as the newsletters are often enlightening as to what is transpiring throughout the country, touching on many topics in one version or another we all confront. So, to participate per the below inquiry regarding replacing factory default with private lock out codes:
    It is not at all uncommon in the fire alarm industry for an installing contractor or current service firm to change the codes from factory default to a private/secure code (though our firm does not subscribe to this practice). This process is rarely if ever a term or condition in any of the contracts I have come across. The real issue is whether or not the equipment owner (non leased) was initially made aware that this would transpire (they never are in my 30 years).  If not and another firm needs to access, it is very difficult for the current firm to justify entering there own programming access code in the customer-owned equipment and then attempt to charge to return to factory default (we have a template customer advisory/education letter just for this occurrence). I will say that many firms have attempted this ‘strong arm’ approach and often, for expeditious solution are paid the few dollars by the customer to change back to default. However, the few dollars they gain for the service call is far outweighed by the loss of good will and resulting impact to reputation...
    Do a good job and the customer will tell three people...
    Do a ‘bad’ job (i.e. attempt to leverage) and the customer will tell ten people.
Richard Schwank, Vice President, Operations - General Manager
Statcomm Inc.
Mountain View, CA
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Ken,
    We often see dealers come across the problem of locked out panels.  As you said, most jurisdictions do not have laws addressing the issue.  We agree that the best course of action to avoid disputes over panel lock outs is a solid contract and good customer service from day one.  In addition, there are equipment solutions to help address the problem.  The AlarmPath division of CRN Wireless manufactures a wireless communicator device called the AP-D200 that attaches to a locked out alarm panel via just four wires.  The device captures the full data of the panel (event and zone) and sends the signals wirelessly over the national cellular network to CRN’s NOC; the signals are processed and assigned a new account number and a new central station number and then routed to the new central station for response.  The locked out panel does not need to be reprogrammed.   Dealers are advised to verify that the subscriber has fulfilled any existing service contracts before installing the device.
Richard Moreau, President
CRN Wireless
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Response
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    An interesting solution to the lockout issue.  Does this wireless device satisfy UL for certified systems?  AHJs?  Fire fire alarms?  How about in NYC fire?  
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