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Issue - alarm co. taking advantage of elderly 

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Ken

    Looking for your professional opinion on how to proceed with a situation that I was asked about…

    An elderly family friend (she’s nearly 90) that I’ve known since I was a child has an alarm.  She was with ADT for years.      
    A guy comes to her door says “I’m here to upgrade your alarm.”  She lets him in (her daughter was visiting for dinner & confirmed this) and after he has installed a new panel/keypad,  a second guy shows up – the salesperson to have her sign new contract.  He was very evasive & misleading about the company name  – the new company was 3 letters close to ADT.  She did not realize that she had changed companies until 2 months later when a new bill arrived from a company called this new company.  She says she never canceled her ADT account but no longer receives an invoice.

    I did some research and this company has numerous complaints.  They are the typical summer, Utah doorknocker business model.  They are not licensed in the State of Florida – the license they have on their website & documentation is “void”.  I checked with DPBR.  I also seriously doubt that the technician or salesperson were FASA/BASA certified in the State (also required).

    I met with her to see what happened and she wants to cancel with them because they lied.  Does she have a valid reason to cancel the contract and how would you recommend she go about this to avoid problems with collections?  It was such an underhanded business transaction and it’s what gives the industry a slimy reputation.  Please let me know what your consultation fee is for investigating & addressing this situation.

    I’ve attached scanned copies of the documentation she was provided.  The “General Clarification Questionnaire” is really amazing reading.  I know she signed it all without reading it – but they took advantage of an elderly woman.

Thank you,

Angela Barnard

Audio Video Systems, Inc.

West Palm Beach, FL 

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Response

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    This kind of business practice reflects poorly for the alarm industry as a whole.  Last thing we need is for the public to start thinking about alarm salesmen as aluminum siding salesmen from the 1950s.

    My legal career has been devoted to representing the alarm industry, so I don't assist subscriber get out of their contracts, even those who may have been mislead into signing that contract.  Complaints to consumer agencies would be the appropriate remedy, and of course this subscriber can take her chances on defaulting on the contract.

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Alarm co trying not to be bullied into signing away rights

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Ken,

    Thanks for the seminars. They have been really informative.  I am mainly a commercial fire integrator. I use your all in one contracts.

    This year I have lost a few large and long time clients due to my refusal to sign their contracts that contain a lengthy waiver of subrogation, indemnity clauses, along with a few other nifty provisions. Even the manufacturers we work with are trying to sneak things under the radar like a new personal guaranty with my home as collateral. I am seeing a trend in the commercial fire business. I am sure eventually all commercial management companies will be using a similar contract. The cancellation letter typically says I am being canceled because I cannot meet the insurance requirements, which really chaps my A.. as I spend a great deal of money to carry a Large amount of insurance and E&O.

    We required an elevator company (won't mention names,sounds like Notice) to assist us in accessing the shaft ( in a building they service). They wanted $1,000 per hour for 2 men plus, a waiver of sub, indemnity clause, name them as add' insured and I would be responsible if their guys were hurt??? 

    Based on the education I have mostly received by listening to you, I will never sign something like that! It is affecting my ability to stay in this particular segment of the business.

    Anyone else dealing with this issue? Any thoughts or ideas on how to retain the business without signing my life away? Or should we prepare for a change?

Anon if Florida

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Response

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    There are some alarm co owners who are not flexible at all when it comes to modifying their alarm contract, or refusing to sign a subscriber or general contractor's form contract.  Others are willing to engage in negotiations and reach amenably terms with the subscriber without putting themselves in extreme risk.  Still others will agree to any terms just to get the work.  

    I don't fault any of the above.  They just need to understand the risks they take and the consequences that flow from those risks if things go south.  You don't risk your entire company and personal worth for a $20 a month account.  There may be no RMR worth that.

    I am called upon to negotiate the terms of the alarm contract frequently.  There are many provisions that can be omitted and others that can be modified - there is no reason to have a hard and fast rule of no negotiations.  Most interventions I engage in end up with an executed contract.  The alarm company does have some added expense in getting the contract signed, but the work is worth this expense.  

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