Chubb Security Alarm Commercial Service Charge Fees

Wallaby

Hi, this might not be the correct place to ask for advice regarding this dispute as it concerns security alarm service charges for an alarm system installed at a small business. But I will be grateful for any feedback or advice from anyone with a small business who has any experience of this.

Chubb fitted the security alarm in 1996. The installation cost £700 with a service charge of £395.00. The service charges have increased over the years and are now close to a staggering £800 per annum.

I think this is excessive for a system that gives Chubb very little problem, in relation to maintenance, given that I have not had one single break-in since the system was installed in 1996 and I have had no more that a handful of false alarms since the system was installed. Luckily, my business premises are well protected within an enclosed environment.

I have made complaints to Chubb over the years about price increases, all via telephone. Sometimes the service charge has been reduced as a result, but then the fees creep up again.

I'm told that Chubb have a tariff, for want of a better word, for service charges based on how much maintenance is involved to each system. I don't know what those tariffs are, but my business should be on the lowest tariff because it gives no problems to Chubb and should therefore be low maintenance for Chubb. This is evident in the fact that an engineer is sent to service the system only once each year.

I am billed monthly and have refused to pay. Chubb are threatening to take the system out and issue court proceedings for the outstanding amount. Chubb have added a 'Debt Fee' plus interest to the outstanding amount. Chubb have pointed out that having no alarm at the premises could void my insurance.

I see Chubb's tactics as bullying and this has made my blood boil. I feel like they are using this as leverage to force me to pay, what I see as, excessively high fees.

I would love to hear from anyone who has a small business to compare their annual service charges.

Thank you for reading this

Wallaby

vuvuzela

Wallaby wrote: »

Hi, this might not be the correct place to ask for advice regarding this dispute as it concerns security alarm service charges for an alarm system installed at a small business. But I will be grateful for any feedback or advice from anyone with a small business who has any experience of this.

Chubb fitted the security alarm in 1996. The installation cost £700 with a service charge of £395.00. The service charges have increased over the years and are now close to a staggering £800 per annum.

I think this is excessive for a system that gives Chubb very little problem, in relation to maintenance, given that I have not had one single break-in since the system was installed in 1996 and I have had no more that a handful of false alarms since the system was installed. Luckily, my business premises are well protected within an enclosed environment.

I have made complaints to Chubb over the years about price increases, all via telephone. Sometimes the service charge has been reduced as a result, but then the fees creep up again.

I'm told that Chubb have a tariff, for want of a better word, for service charges based on how much maintenance is involved to each system. I don't know what those tariffs are, but my business should be on the lowest tariff because it gives no problems to Chubb and should therefore be low maintenance for Chubb. This is evident in the fact that an engineer is sent to service the system only once each year.

I am billed monthly and have refused to pay. Chubb are threatening to take the system out and issue court proceedings for the outstanding amount. Chubb have added a 'Debt Fee' plus interest to the outstanding amount. Chubb have pointed out that having no alarm at the premises could void my insurance.

I see Chubb's tactics as bullying and this has made my blood boil. I feel like they are using this as leverage to force me to pay, what I see as, excessively high fees.

I would love to hear from anyone who has a small business to compare their annual service charges.

Thank you for reading this

Wallaby

Unfortunately you're posting on a consumer website, most people here won't have experience of business to business contracts.

The below paragraph is a bit worrying though :

"I am billed monthly and have refused to pay. Chubb are threatening to take the system out and issue court proceedings for the outstanding amount. Chubb have added a 'Debt Fee' plus interest to the outstanding amount. Chubb have pointed out that having no alarm at the premises could void my insurance. "

All this seems perfectly reasonable to me. Their charges might be on the high side, but your refusing to pay seems pretty much like cutting your nose off to spite your face. Does your insurance specify that you have a working alarm installed ? What length of contract are you tied in with Chubb ? Who told you that they have variation of tariff depending on 'nuisance value' ? Have you tried negotiating with Chubb ?

Wallaby

vuvuzela wrote: »

Unfortunately you're posting on a consumer website, most people here won't have experience of business to business contracts.

The below paragraph is a bit worrying though :

"I am billed monthly and have refused to pay. Chubb are threatening to take the system out and issue court proceedings for the outstanding amount. Chubb have added a 'Debt Fee' plus interest to the outstanding amount. Chubb have pointed out that having no alarm at the premises could void my insurance. "

All this seems perfectly reasonable to me. Their charges might be on the high side, but your refusing to pay seems pretty much like cutting your nose off to spite your face. Does your insurance specify that you have a working alarm installed ? What length of contract are you tied in with Chubb ? Who told you that they have variation of tariff depending on 'nuisance value' ? Have you tried negotiating with Chubb ?

Hi Vuvuzela,

Re; Length of contract.
Under the heading "Definitions" the agreement says:

(h) Installation Agreement - a minimum period of five years from the installation date.

Extension Agreement - a minimum period of five years from the extension Date.

Transfer Agreement - a minimum period of one year (or if the Transfer Date is nine months or more prior to the date of acceptance two years) from the Transfer Date.

The following is then added to the above in brackets:

Quote:
continuing thereafter unless terminated by not less than one month's notice in writing given by either party to the other expiring at any time after the minimum period. Unquote.

I don't have a problem with insurance.

In the past I have been told by several Chubb engineers that there is room for Chubb to bring service charges down. The engineers mentioned a name they call a lower tariff, which I forget. But the name implied a trouble-free account.

I have tried negotiation with Chubb. They have offered a discount which is unacceptable.

There is a clause in the contract about service charge price increases.

Quote:
The Company may increase the Service Charge at any time after the installation date ( not being earlier than the date of the notice) on and after which the new Service Charge shall become effective. The Customer may within 14 days after the service of any notice of the new Service Charge give three months notice in writing to the Company terminating this Agreement pursuant to clause 5 (d) above. If the Customer shall give such notice of termination the new Service Charge shall not be effective during such notice period." Unquote.

No notice of Service Charge increases has ever been issued. I have only ever received the invoices at an increasing rate.


Thank you

Wallaby

Re: "Unfortunately you're posting on a consumer website, most people here won't have experience of business to business contracts."


Yes, understand. Do you know of any websites that are more appropriate to air this issue ?


Thanks

societys_child

I don't see how you can accuse them of bullying when you were the one who stopped paying. Surely, if you didn't like the charges you should have cancelled and paid whatever was outstanding.

Wallaby

societys_child wrote: »

I don't see how you can accuse them of bullying when you were the one who stopped paying. Surely, if you didn't like the charges you should have cancelled and paid whatever was outstanding.

Chubb have pointed out that if I don't pay the service charges that they are demanding, they will cancel the contract, They have pointed out that this action will then leave me with no protection at my premises & could void my insurance. Their attitude is an aggressive 'take it or leave it' message.

They, (Chubb) seem to think that I will pay their service charges because my options of cancelling my contract with Chubb & installing another alarm system will cost me far more & so leave me no choice other than to pay the service charge that they are demanding. In my book, that's big business coming down hard on a little business, which I feel amounts to bullying.

EDIT: The amount outstanding is in dispute as it is based on a service charge that I have not agreed to.

Thank you,

unholyangel

Wallaby wrote: »

Chubb have pointed out that if I don't pay the service charges that they are demanding, they will cancel the contract, They have pointed out that this action will then leave me with no protection at my premises & could void my insurance. Their attitude is an aggressive 'take it or leave it' message.

They, (Chubb) seem to think that I will pay their service charges because my options of cancelling my contract with Chubb & installing another alarm system will cost me far more & so leave me no choice other than to pay the service charge that they are demanding. In my book, that's big business coming down hard on a little business, which I feel amounts to bullying.

EDIT: The amount outstanding is in dispute as it is based on a service charge that I have not agreed to.

Thank you,

Tbh, I'm not quite sure I understand your complaint.

They're giving you the option of cancelling without penalty when they increase the charges. Even in a b2c contract, this is pretty much all that is needed to ensure fairness. You have the choice to either accept the price increase or take your business else where. You can't force someone to contract with you on your terms. You can of course negotiate, but no contract will be entered into unless both parties agree mutually.

Even if they are charging similar businesses less/more, theres nothing against that either (providing they're not discriminating due to protected characteristics of course).

If they're that bad/expensive, then surely paying for installation & service from another company would work out better financially in the long run.


Re your edit...does that mean that you tried to give them your cancellation notice and they've refused to accept your cancellation?

Wallaby

Thank you for your comments everyone. I've since explained my issue on a small business website forum which I have found. I've had some feedback & some very helpful advice from other small business people who have been able to give me comparisons which indicate that I'm paying more than double the service charges that these small businesses are paying. In fact, some where paying only 1/3 of what I'm being charged for a similar service.

This now helps me to make an informed decision. It also confirms my suspicions that the discount offered by Chubb to resolve this issue is nowhere near enough. Chubb do seem to be relying on the leverage that they think they have to retain their high charges.

Edit: I've also found that any increase is usually notified to the customer in writing.

Thank you

bris

Read your contract for timelines then cancel at your earliest convenience.


Being a business means you are tied to the contract you agreed to so stopping the payments will just bring extra charges. This will go against you and hurt your interests when dealing with new businesses you may need in the future.

shaun_from_Africa

You may well find that if/when you phone up to cancel the contract, you suddenly get offered a reduced service charge providing you agree to stay for a further fixed period but as already mentioned by others, you should ensure that any outstanding fees and charges are fully paid up before you contact them.