When it comes time to cancel an alarm service, the first thing the homeowner should do is look at his or her security contract. The contract may have requirements for cancelling such as it must be done in writing, and it must be done at least three months before the term ends. If these requirements aren’t followed, the contract could be automatically renewed.
Most security companies use roll-over contracts and need to be actively canceled. This is why it’s not a good idea for the customer to wait until the end of the contract to start the cancellation process. If the homeowner doesn’t have a copy of the security contract, they should ask the company for one. They are legally bound to provide a copy of the contract to their customers.
Before cancelling a security contract, the homeowner should look at the Terms of Agreement. They will find the expiration date and the time-frame for cancelling. There could be a penalty for cancelling early. The contract may also give instructions for cancelling the service.
The contract should also stipulate who owns the monitoring equipment. If it doesn’t specifically say who owns the equipment, then the homeowner owns it. If the customer still owes money to the security company, it will be very difficult to cancel. It is important that the customer follows all the regulations stated in the contract.
Loopholes
There may be loopholes where the termination conditions don’t apply that allows a particular customer to cancel without penalty, such as if the customer is moving out of the coverage area. If the customer finds a loophole that applies to his or her situation, they need to ask the security company what documentation needs to be submitted.
Many security companies are willing to work with customers who are facing unemployment, are unhappy with the service or if they can demonstrate that their situation has changed since they signed the contract.
The most common means to cancel a home security monitoring contract is with a letter. It should be written in standard business letter format. The letter should state clearly that if the customer does not receive a written response within 30 days, they will consider the cancellation accepted.
Some contracts state that cancellation may be done by phone, but even if the customer informs the security company by phone, it is recommended that they also send a formal letter of cancellation, so they have proof of their intent. There is no proof of a phone call, and the employee who took the call may no longer work at the company.
Early Termination Fees
If the security company indicates that the customer has obligations to the company, such as unpaid bills, the customer should ask them to put these obligations in writing along with clarifications and explanations.
This communication should also include a statement that if they don’t respond in writing within a certain time, it means they agree with the customer’s position. If the customer terminates the contract early and is willing to pay any early termination fees, these fees should be included with the cancellation letter.
Many security companies make it difficult for customers to cancel services. In some cases, the phone calls cancelling service are ignored and contracts are renewed even after the customer has requested cancellation. The advice to follow the contract carefully when cancelling service is worth heeding as a precaution in the event the customer needs to go to court to cancel a service.
Here is a sample of a cancellation letter for alarm service contract. It is recommended that the letter be sent by certified mail, so the customer has proof that the security company received it on a specific date. This proof will hold up in court if there is a serious disagreement about the cancellation. The customer should save a copy of the letter and any other correspondence they have with the security company.
Sample Cancellation Letter for Alarm Service
Name of Customer
Address of Customer
City, State, Zip Code
DATE
Name of Security Company
Address of Security Company
City, State, Zip Code
RE: Cancellation of Alarm Service Ref. No. NUMBER
Dear Sirs,
This letter is to officially inform you that I am cancelling my security service at the end of the term of my current contract. The date is DATE.
I have examined the contract and am following the procedures recommended there for cancellation.
If I don’t receive written response from you within 30 days, which is DATE, I will consider that you agree with my cancellation request.
If you have any questions, I can be reached at 555-123-4567 or at Name@email.com.
Sincerely,
Customer’s Signature
Customer’s Name Printed