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Question: Using Leasing Company
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We have purchased your standard CCTV lease agreement, however we are using a 3rd party for financing of the lease. This will not be an in house lease. How should we make sure that we are covered in regards to liability on the CCTV system? I have contacted the leasing company to get a copy of their lease agreement from them. Any advice you can give would be greatly appreciated.
Thank you,
Melissa
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Answer
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You are actually selling your system to the leasing company. The leasing company is then selling the system to the end user most likely using a Retail Installment Lease. You can use the Sales Contract, but the better choice is the Residential All in One. The end user will be signing the leasing company form [and I dont care what that looks like] but should also be signing an the All in One form since you will be providing installation, service and monitoring. The end user form may say that all charges are paid by the leasing company, or if the leasing company is only financing the purchase and installation the end user may be paying for monitoring and probably is paying for service.
I haven't reviewed a leasing company's contract in a while. The ones I have seen are generic for any type of equipment, which is entirely unsuitable for the security industry. These leasing company forms are typically known as "Hell or High Water" leases, and provide that the end user acknowledges that the system and services are provided by a third party [who is in the business of dealing with such systems] and that the leasing company has no obligations and its lease has to be paid, come hell or high water.
One final bit of advice. Use third party financing as little as possible. Get yourself into position to offer your subscribers your own lease, commercial or residential. Keep the RMR for yourself and finance your own installations. I know, easier said than done.
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Comment on Fine the Alarm Company for False alarms from July 19, 2014 Article
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Ken
What a brilliant idea! Fine the alarm company or the central station that generates the dispatch! Just think: the alarm company chooses the equipment quality, trains the installers and service personnel, trains the customer and tracks the false alarm history daily to prevent reoccurrence (or at least should). Let the alarm industry police themselves without a drain on public service.
Also I like the idea of fining the auto dealer for the drivers violations as long as they can shut down the vehicle remotely for non reimbursement from the driver. Just like the alarm dealer does.
Leo Weiss
Eagle Security
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More on Seattle fines
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Ken
The Seattle ordinance, known as SR/Subsidy Recovery, has been mentioned often in the Newsletter last few days with lots of confusion. Because SR is getting more popular, we repeat an explanation of several months ago.
S/R Subsidy Recovery (the Seattle Ordinance) is very simple… the caller pays a fee for police services… note, the CALLER, i.e. the monitoring source. In Seattle it is $115. Every request for alarm response by a licensed monitoring firm is billed to the alarm company that made the call… no freebies. Zero fines/fees levied to the customer alarm site. Each call is assumed to be false. If evidence at the scene shows a 911 type event, the charge is voided. If a cancellation is requested, the monitoring firm is billed a cancellation fee.
The monitoring firm is not a collection agency for Seattle, it is the perpetrator. However it can off-load the costs, not the formal fine, to its customer.
Yes, this ordinance is focused on the licensed alarm industry due to excessive and abusive use of services. No, does not apply to DIY systems or the general public, just the licensed alarm industry. SR was a compromise for Verified Response.
Here is a link for details… www.seattle.gov/police/programs/Alarms/
Lee Jones
Support Services Group
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Tucson AZ compared
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Ken,
In response to Police Departments fining the Alarm Company, this is more justified than the City of Tucson assessing clients a fee. Tucson allows no day in court, because no court will uphold false alarm fines. The City of Tucson was aware of this due to the County Court throwing out false alarm fines and the County ending their false alarm program. Now the City of Tucson has instituted a guilty until you prove your innocent policy. The Police can't prove your alarm even went off. Did the alarm react to a rock hitting the window or a burglar having attempted to break in or did the alarm company dispatch on a wrong account or have false information? The Police just assume guilt.
The Police do have proof that the Alarm Company did dispatch the Police, so they can fine the Alarm Company for dispatching on an unverified alarm. Fontana's verified response has implemented this system and refined it to work for everyone. This system places the alarm company on the hook for bad installations, bad information being entered and dispatching on wrong accounts. The reason the Alarm Companies hate receiving the fine, is because they don't want to accept responsibility for the products they are selling and they don't want to cancel the contract, if a client doesn't pay.
We should also keep in mind that it is illegal to sell taxpayer funded resources. Alarm Companies are selling a response that is provided by Police, a taxpayer funded resource. Police should not be responding to alarms and providing a Security Guard Response to Private Sector alarm calls. Maybe if these alarm companies in Seattle went to a Private Sector Response, the City's Alarm Ordinance wouldn't matter?
Roger D. Score, President
Arizona Alarm Dealers Association
(520) 419-4677
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TO SUBMIT QUESTIONS OR COMMENTS REPLY TO THIS EMAIL OR EMAIL Ken@Kirschenbaumesq.com. Most comments and questions get circulated.
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Speaking Engagements
If you would like to schedule a free live video/webinar presentation for your association meeting or event contact Eileen Wagda at 516 747 6700 x 312.
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Alarm Association of Greater St. Louis. September 16, 2014. at Tech Electronics HQs office at 6437 Manchester Ave, St. Louis, MO 63139. Meeting is from 11:45 – 1:30 Video conference presentation starting at 12:15 CST. For more information or to register contact Tony Drago adrago@tyco.com www.alarmstl.org
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NYSESA - September 17, 2014 at Honor's Haven Resort, Ellenville, NY. This is the NYS Electronic Security Assoc annual meeting. Presentation on updated contracts and current legal issues will be at 10:30 AM. For more information or reservations contact Dale R. Eller, Executive Director (814) 838-0301 dalereller@itzsolutions.com
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Alabama Alarm Association. AAA's Fall Meeting and Trade Show - October 21, 2014 from 3 to 5 PM at DoubleTree Hotel 808 South 20th Street Birmingham, AL 35205 for more info contact AAA Executive Director: director@alabamaalarm.org (205) 933-9000
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Electronic Security Summit for 2014. October 22-24, 2014 at the landmark Broadmoor Hotel. Colorado Springs, CO. For more information contact Alexander J. Quirin, CEO & Managing Partner, Advisory Summit Providers, LLC., (786) 999-9738 alex.quirin@aspsummits.com www.aspsummits.com
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