QUESTION:
Ken,
We are currently moving our existing customers to new wholesale monitoring service and we are using your contracts in this process, I'd like to know what is the best method dealing with customers and making sure we are following the right procedure.
1. currently all customers are billed yearly; how many days in advance do we need to notify the customer about this change and signing new contract?
2. if customer decline to sign the contract what do we do to terminate and disconnect his monitoring service?
3. commercial customers: if system is not 100% by code do I notify the customer and terminate the service?
How do we communicate all the above? do you offer documents that will help us with this process?
Thank you,
Best, Eli
************
Answer:
The relationship and contract in question is a monitoring contract. You need your own monitoring contract with your subscriber; not the three party contract furnished by the central station. If you don't have a proper monitoring contract [ which means my monitoring contract - get it at www.alarmcontracts.com you will probably find that he central station will require you to use its three party contract. With my monitoring contract you can ask the central station to accept that contract and it probably will.
I am going to assume that you have my monitoring contract. If you don't then I don't know what contractual undertaking you have assumed.
The periodic billing cycle you have with your subscribers makes no difference in your selection of a central station. You have the right to select the central station, not the subscriber. No particular period of notice is required, only that you let the subscriber know that there is a new number to call when trying to reach the central station. A new monitoring contract is not necessary just because you are switching central stations. Of course if your monitoring contract is dated, in renewal or expired, then get a new one signed.
If a subscriber does not have a current contract and refuses to sign a new one then you have to decide if you want to terminate that subscriber. Your central station may not want to monitor that account. Your errors and omissions insurance company may not want to cover you if that subscriber suffers a loss and sues you. Providing any alarm service without a proper contract is risky and foolish, but lots of alarm companies do it because they don't want to lose the business. Terminating service is a business decision you have to make. It's an easy decision if the account is paying $20 a month. Not so easy when its paying $800 or more a month for one or more locations.
You've asked about monitoring, so whether the system is to code or not may not matter. You should use the Disclaimer Notice for every installation and when you sign a subscriber up for monitoring or service. That notice alerts the subscriber to inherent deficiencies in the system, other protection that is available and specific deficiencies in the system [which you have to add by hand]. If you are monitoring fire then I strongly suggest that you use the DIsclaimer Notice and point out system deficiencies. You may have an obligation to notify the AHJ as well and you should check with local requirements.
One thing I can assure you, there is no substitute for proper contracts. If you want to build your company, add to its value and preserve that value then get proper contracts. www.alarmcontracts.com