Security Sales and Integration Magazine

Yo! ADT Raps Flo Rida for Default

By Ashley Willis | September 25, 2012 | Comments (18) | Post a comment
ADT has taken rapper Flo Rida to court for failing to pay for a $58,000 security system the company
ADT has taken rapper Flo Rida to court for failing to pay for a $58,000 security system the company installed. Photo via Flickr (Beyond The Barricade Photography)

Don’t you just burn up when customers fail to pay for the security systems that your company’s salespeople, customer service reps and technicians took the time and effort to sell, schedule and install? To be honest, it makes my blood boil — and I don’t even sell or install security systems!

So, when I came across a recent tweet from @FSN_Ryan, I was instantly annoyed. The tweet read:

“ADT SUES RAPPER FLO RIDA FOR FAILURE TO MAKE PAYMENTS.”

(ASIDE: I’ve been a pretty big fan of social media as of late. If you don’t believe me, check out my social media marketing feature in the September 2012 issue, as well as my three-part social networking blog series. Yes, I realize this is a shameless plug. END OF ASIDE.)

I followed the tweet’s link, which took me to a story posted on kovideo.net. The story mentioned that back in 2009, ADT installed a $58,000 security system at rapper Flo Rida’s mansion. Included in the system were “countless amounts of sensors, smoke detectors and 27 security cameras.”

ADT has presented a copy of the contract to court officials, which shows that Flo Rida’s manager, Lee Prince, signed it. The company maintains that it received the initial deposit of $19, 366.66; however, the remaining amount of $38,733 has yet to be paid. Now, ADT is asking for the amount of unpaid services as well as interest. This brings the remaining total to $47,134.40.

For his part, Flo Rida (né Tramar Dillard) claims that he never authorized ADT to install the security system. Further, he maintains that because his manager signed the contract, Prince is fully responsible for paying the bill. From my understanding, the court hasn’t made a decision on this case yet.

I guess only time will tell whether Flo Rida or his manager is really at fault but one thing is for certain — ADT has not been paid for its services. That doesn’t sit well with me. To be fair, I know there are two sides to every story, and I’ve only received bits and pieces about this alleged incident. However, from the sound of it, there were no problems with the system, so why does ADT — or any security company that has experienced a similar situation for that matter — have to scratch and claw its way to get paid for the service they provided? That’s so not cool.

My question to you, readers, is how do you handle incidents when your client — celebrity or not — fails to pay up? It’s one thing to have to write off a basic residential system but what about more extensive and/or expensive systems like the one depicted above? You can list your answers in the comments section below.

Ashley Willis | Associate Editor

Read more about: ADT, Celebrities, Flo Rida, Lawsuits

Review / Comment


Can't imagine what ADT could actully install that would cost $58k...even in a Mansion...another good old fashion "ADT" job it sounds like. And rule # 2...collect up front. Don't care who ya are!
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Quarterwave
September 25, 2012
Look, a security system is useless unless it is backed by a maintenance contract. If the bill is unpaid, the security company won't service it! Comment via SSI's LinkedIn page.
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Yiannis Diakos
September 26, 2012
You firmly call your customer and request payment first, on the 2nd call you demand payment and if there has to be a 3rd call you need to look at your repossession clause in your contract. Comment via SSI's LinkedIn page.
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Pat Sutton
September 26, 2012
I have found that a nice demand letter sometimes helps. In this letter I would ask if there is a reason they are holding payment. Then you must be relentless with the phone calls and even site visits. I have made it my mission to become a thorn in their side until they finally feel that it is worth paying me to go away. Comment via SSI's LinkedIn page.
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Josh Farley
September 26, 2012
My company also is finding that in this tough economic time that some clients stop paying for whatever reason. This causes overall problems as salesman begin to get charged back for accounts they opened months ago and the company itself may suffer large financial loss. You need a team in place who's sole purpose is to relentlessly call and demand payment. There will be those that finally pay and there will be loss. Make sure everyone from managers, to salesmen, as well as the collection team is making the calls. Sometimes the person that started the relationship has the best chance to get $$$. Comment via SSI's LinkedIn page.
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Michael Gawler
September 27, 2012
I believe ADT will have a hard time collecting & might very well lose in court-a company can't collect if the property owner did not sign
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joey
September 27, 2012
Yes, it is tough to recover the payments. The service is being given during the period of warranty. A minor fault is being blown up, fire commissioner is involved, chances of getting full systems nullified are on the higher side. The fire dept provides us the licenses to work and are sure of our work executed. Queries about the same with us we provide the details and the fire dept is satisfied and we use their good offices to recover the outstandings and we keep the fire department happy. We take 25% advance before we start work. Comment via SSI's LinkedIn page.
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Arun Halapeti
October 1, 2012
This is why back in 1997 I integrated GSM into all my equipment so I can switch it off and also if I feel nasty set the siren going at all times of the night. :) Comment via SSI's LinkedIn page
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Julian Fine
October 1, 2012
According to my experience concerning this issue so many people are involved e.g the consultants, technicians and the accounts department. As a result the client take an advantage so what i suggest is when the client accepted the quotation, he/she must pay deposit before the installation .Upon completion the outstanding balance should be paid to the accounts department.The job must be thorough, neat and fully functional according to the client's specification. Comment via SSI's LinkedIn page.
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Johannes Gobo
October 2, 2012
Persistence is usually a good tactic. Keep calling them, it usually works.
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Ashley Thomas
October 8, 2012
We started requiring a 50% deposit, which helped a lot. Comment via SSI's LinkedIn page.
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Steve Sharp
October 11, 2012
Follow Steve Sharp's path. Carry out a credit check before providing service. We use Barclay's Credit Focus to do a credit check and monitor their credit rating. It also has a free utility to send unlimited solicitors letters. So far it has worked for us to get paid from such customers. However above should be the last thing to do as there is a very high risk that you will loose the client. Before sending a solicitor letter, use all other tactics which can recover your money amicably. If you have monthly payment system, you can put a condition in your contract that customer should pay a minimum amount if they cancel the contract before a given period of time. Work like a mobile phone contract. Comment via SSI's LinkedIn page.
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Zulfiqar Ali
October 11, 2012
We started requiring a 50% deposit too! Comment via SSI's LinkedIn page.
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Home Security361
October 11, 2012
Steve Sharp and Home Security 361 are suggesting to you the future plan. However you have asked suggestions to deal with a current default. Call them to know the reason for withholding the payment, send recorded letter if former fails, if all fails try to use a debt collector or simply go to Money Claim Online (if you are in UK) to start a court case. For undisputed debts, direct use of County Court Claim website (Money Claim Online) is the best and quick. After receiving court notice, you can expect payment within 14 days, the reason for not paying or a defense notice. They can't keep quiet on this. Before taking court action, you should wait for few weeks if they respond to your calls or letters. They may have some genuine reason for not paying or some serious concerns about the service provided. Keep record of all correspondence. Comment via SSI's LinkedIn page.
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Zulfiqar Ali
October 11, 2012
If it is a commercial client, the easiest recourse is to file a lien on the business. While this may not be the fastest way to obtain your installation fees it is one of the surest ways to eventually collect. The filing of a lien will prevent the client from getting any loans, lines of credit or be able to sale their business without satisfying the lien. Usually notifying the client of intent to file a lien will successfully open the lines of communication so as to find out what their discrepancy is and to mutually resolve the conflict. Comment via SSI's LinkedIn page.
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Richard Hambrick
October 11, 2012
My favorite way to collect was to remotely connect to their security systems and change the keypad display message to " PAY YOUR BILL". Surprisingly it worked.
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Luke Barnhart
October 19, 2012
Prepayment
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Fook Lim Yap
October 19, 2012
What we do at IDtech is that we deliver all our software with a temporary security key. We give only a definitive one ones the bill is paid. When the temporary key reaches the time limit, the user get a message saying that as long as he does not install a definitive key, what he can achieve with the software is very limited. I can tell you hat it works perfectly. Comment via SSI's LinkedIn page.
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Jean Marie Hannaby
October 19, 2012

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Author Bios
Scott Goldfine
Scott Goldfine

Scott joined SECURITY SALES & INTEGRATION in October 1998 and has distinguished himself by producing award-winning, exemplary work. A Western Publisher Association's Maggie Award winner, his editorial achievements have included blockbuster articles featuring major industry executives. Since graduating in 1986 with honors from California State University, Northridge with a degree in Radio-Television- Film, his professional endeavors have encompassed magazines, radio, TV, film and more.


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Rodney Bosch

Although Bosch’s name is quite familiar to those in the security industry, his previous experience has been in daily newspaper journalism. Prior to joining SECURITY SALES & INTEGRATION in 2006, he spent 15 years with the Los Angeles Times, where he performed a wide assortment of editorial responsibilities, including feature and metro department assignments as well as content producing for latimes.com.