QUESTION:
HI Ken,
I have a question on my policy in regards to how I offer payment options to make sure I am not out of line in any way.
I offer a yearly discounted rate if paid by the renewal date. I give them a 2 month discount on the normal rate if paid in full and on time. If it is not paid on time, then they automatically go to the normal quarterly rate and pay for the full 12 months. This way I am rewarding them for a timely payment instead of penalizing them for a late payment. Am I allowed to offer discounted rates as a security dealer?
Stephen Merola
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ANSWER:
The quick answer is that you are permitted to offer discounts to subscribers who pay in advance or even timely. But here is what you need to be careful with, finance charges and installment payments that result in different pricing.
Particularly with consumer contracts involving the home you need to be careful about charging finance charges or creating installment contracts that have hidden finance charges. The statutory rules for such contracts are far more complicated than the typical alarm contract that provides for an installation charge and then monthly charges for the services.
I have suggested to clients that they avoid finance charges or installment sales. None of my contracts at www.alarmcontracts.com have those provisions.
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Licensing Issue
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QUESTION:
Ken,
Many thanks for the valuable and helpful info you provide.
The “Summer Model” sales-forces have begun to canvas our area and solicit our customers. If the alarm company and/or salesperson providing/signing the contract is not licensed in the jurisdiction in which the services are to be provided, can the subscriber successfully claim the contract is void?
Thank you,
Ron
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ANSWER:
If the salesman or the company is required to be licensed and either are not the contract will not be enforceable in most jurisdictions.
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AUTOMATIC RENEWAL
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I know you talk about this. Is this legal in the New Jersey?
Auto renewal, If a client signs a service term for one year and then auto renews because they did not terminate within 30 days after the original term is that legal?
The contract wording is
"Renewal The initial service term will automatically extend for additional 1 year periods (“Additional Service Term”) unless Customer notifies Compnay X of cancellation, in writing at least thirty (30) days prior to the expiration of the initial service term or an Additional service term."
Thank you,
Ralph Meyers
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ANSWER:
No prohibition on automatic renewal in NJ as far as I know.
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Commercial Fire Alarm Sales
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QUESTION:
Hi Ken,
Please set me up with whatever contracts I will need to perform sales, service, and monitoring for commercial fire alarm ONLY. Some cases there will be elevator phone monitoring if that makes a difference.
Hopefully you will respond today!!
Thanks again and I look forward to hearing from you soon,
Sincerely,
Dave
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ANSWER:
You need the Fire Alarm Sales contract, the Monitoring contract and be sure to get the Fire Alarm Inspection and Service contract. www.alarmcontracts.com
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Need a contract???
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QUESTION:
Ken,
Saw you add in Security dealer, we need an all in one contract that has options. For example a “blank” to fill out for length of contract. An option of owning the system or leasing it. A clause that says if they are leasing the equipment they must return it when they don’t want to pay for it any more or pay “blank”. A “blank” to add warranty.
Can you help?
Jon
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ANSWER:
Get the ALL IN ONE at www.alarmcontracts.com