Yesterday's artice had the wrong title in the subject: should have read comments on changing monitoring procedure / extras during installation
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Ken,
Regarding the 3-day cancellation.
I occasionally get repair requests from non-subscribers who already have an alarm. The classic cases include unsilenceable audible alarms (usually smoke detectors they can't deal with themselves because of physical challenges or lack of handiness) and continuously falsing burglar, fire or panic alarms. Some calls come from people who bought an alarm-equipped home but haven't bothered to deploy it yet, and now it's suddenly gone nuts.
These people will frantically call every number in the book for someone to come out immediately. Before I agree to send someone, I warn them about the red tape.
Once there, it's standard procedure to get the client to sign our repair contract. That obviously means signing an in-home transaction. Aside from the Moss-Magnuson issues, in PA we have HICPA [Home Improvement Consumer Protection Act], requiring a three day wait before we commence any home repairs. (What legislative dunce failed to provide for these possibilities?)
When bells are ringing, it makes no sense whatsoever to go out and give an estimate, get the papers signed, leave the system untouched, and then come back three days later. Usually we can do the repair or a temporary fix on the spot in a few minutes. Ideally, we would resolve just the emergency part of the problem and then return after 3 days to do any complicated and more permanent repairs.
So we therefore first submit the required written proposal. The Conditions of Proposal state that ALL work is performed ONLY under the terms of our standard contracts unless otherwise agreed in writing. (That sounds good for petite matters but it remains to be seen if it will hold up in a major case.) Assuming the proposal is accepted, we get them to sign the Repair Agreement and also present the 3-part, 3-day rescission form, which has a separate signature line to acknowledge they received the required 2 copies. Then we require a handwritten waiver on plain paper for the emergency repairs. We do the job, present our bill and get paid.
If the job was done correctly, professionally and at a reasonable cost, the three days will expire and everybody will be happy. You always take the chance that the customer will cancel the contract. If the customer files a complaint based on the emergency repair being done within the 3-day period, you should be prepared to lose, so you should do only essential damage control within that period if the overall repair job is big, for example a flood or severe lightning hit.
If someone decides to blame your "bad" repair for a loss, they could theoretically use the 3-day requirement to invalidate your whole contract and its limitations of liability. Your ass is always out there no matter what you do. The best you can hope for is that their check will clear.
If they don't cancel the contract you'll be good to go without restrictions on the next emergency call and who knows, you might get some more business and referrals out of your prompt response.
Signed,
HIPCA sufferer in PA
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Response
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I'll go out on a limb a bit and take this position, and if any lawyers out there disagree they are welcome to send in their comment.
You get a call to service an alarm or security system at a residence where you are not under any contract obligation. In other words, you have no relationship with this subscriber; you're not monitoring or servicing the account. You have a few options if you decide to provide the repair service.
- You can present the subscriber with a written repair bill before you do the work, a Service Slip [we do have this form but since it's not the preferred way to do business you have to call our Contract Administrator Eileen Wagda at 516 747 6700 x 312 -- you won't find the form on our list of available standard form agreements at www.alarmcontracts.com]. You should get the Service Slip signed before you do the work, and if you can't be sure to get it signed when the work is completed and get paid at that time. Under this scenario I do not believe you need to use a 3 day notice of cancellation.
- You get a service call, same as above, but this time you arrive at the residence and present the subscriber with a Service Agreement [you should be using the Residential All in One - if all you're going to do is provide service then that's the only part of the agreement you fill out]. The Service Contract has two options: pay per call as you go, or pay a periodic payment for a service plan. The per call option does not require a 3 day notice of cancellation because it's at will, cancellable at any time. The periodic payment plan [where you benefit by increasing your RMR] does require a 3 day notice of cancellation because the term is 5 years for the service plan. If you are going to provide a service the day you present the Service Contract then you should get paid that day. If the subscriber cancels the Service Contract within the 3 days you will not have to return the amount you were paid for the service call that day. at least not unless the subscriber is required to permit you to restore the subscriber's system to its inoperable state as you found it before you did any service work. This seems to me an unlikely scenario. If you don't get paid the day of service however you do run the risk of cancellation of the contract within the 3 days. You can try and get a waiver, but it's not effective in all jurisdictions.
- I suppose there is another option. Don't have subscriber sign anything, do the work, get paid and leave. Probably better off if you don't let the subscriber know your name, address or phone number under this scenario. If you do, you may want to leave the keys to your truck, deed to your house and your bank account info. In other words, this is not an acceptable option.
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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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Texas Burglar and Fire Alarm Association. October 1 - 4, 2014, annual convention at San Luis Resort Spa & Conference Center, Galveston, TX. Register here: http://tbfaa.org/tbfaa-2014-convention-trade-show-attendee-registration/
For more info contact Debi at 281-859-4569. Brad Shipp, Executive Director
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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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