By: Ken Kirschenbaum, NYSESA Legal Counsel
Ken, we turned an account over to K&K for collection and the case is proceeding. When we turned it over you suggested that we continue the central station monitoring. I have since reviewed the central station account information activity reports and it appears AC power was dropped from panel on 6/10/22 at about 2pm; Backup batteries look to have died on 6/13/22 at about 3am; Every day from 6/16/22 until present day Panel is “Failed to test” and looks to be in communication failure. Can we deactivate the central station account? Or should we wait?
Thank you, Jim
When the case was first referred for collection we believed it was a viable account, meaning the subscriber was still occupying the premises and in business; therefore in potential need of a security system. There were two reasons for continuing monitoring when the subscriber was first referred for collection:
- Many subscribers claim that non-payment was because the alarm doesn’t work and they don’t use the alarm.
- The central station activity report often contradicts that defense and easily proves that the alarm is indeed being used and communicates with the central station.
A good percentage of accounts referred to K&K for collection are reinstated, saved as an account for our alarm client. It’s always the first effort we make when pursuing a delinquent subscriber.
It’s also the cheapest way out for the subscriber because reinstatement is going to cost less than paying off the balance of the contract with no further service, and the subscriber gets continued alarm service when it reinstates. The above subscriber is apparently gone or has disconnected or removed the alarm system; there is no reason for you to continue the central station expense; cancel monitoring. It won’t be long before we see the consequences of our failing economy and subscriber defaults is likely to increase.
In business terms that means your attrition ratio is about to go up and your alarm account equity is about to drop. A strong collection policy can help maintain your bottom line by retaining subscribers when possible and recovering money when cash flow is needed. If you have Standard Form Agreements you can refer your delinquent accounts to K&K’s collection department, comprised of profession attorneys and paralegals who concentrate their time on alarm collection matters.
Not only does this team have the most experience in the alarm industry for collection matters but they also have the best success record, up to 80 percent collection experience. That means many cases collect 100% and some less, but the sooner you start the collection process with K&K the more likely you are going to have a higher collection rate experience. The 0% is only when the subscriber has gone out of business or you have in some way breached the contract. Not all creditors are treated equally and the first in [to aggressively pursue the debt] is often the first out [to collect the debt]. You snooze, you lose.
About Kirschenbaum & Kirschenbaum
For additional information regarding this article, or alarm industry, and / or other legal issues contact: Ken Kirschenbaum, Esq.
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
(516) 747-6700 x 301