ADT is one of the largest and most well-known home security companies in the United States. With over 7 million customers nationwide, ADT provides monitored alarm systems to protect homes and businesses. However, as with any ongoing service, customers may find themselves unable to continue paying for ADT monitoring for any number of reasons. Understanding the consequences of discontinuing service is an important consideration for any ADT customer.
What is ADT?
ADT stands for American District Telegraph and was founded in 1874. Originally a telegraph company, ADT later shifted its focus to fire alarms and security systems. Today, ADT provides a wide range of home security services including:
- Monitored alarm systems
- Home automation
- Video monitoring
- Access control
- Medical alert systems
ADT systems are professionally installed and monitored 24/7 by ADT call centers. If an alarm is triggered, ADT will dispatch emergency services to the home or business. This monitoring and rapid emergency response is the main benefit of paying for ongoing ADT services.
ADT Contracts and Terms
ADT service plans are typically multi-year contracts ranging from 36-60 months. Contracts auto-renew each year unless canceled. Key terms of ADT contracts include:
- Early termination fees – $500+ depending on remaining contract term
- Equipment costs – Equipment is leased and must be returned if service ends
- Termination policy – 30 days written notice required to cancel
- Transferability – Contracts can be transferred to a new homeowner
These contract terms are important considerations if planning to cancel ADT service. Let’s look at what happens in more detail if you stop paying ADT.
Suspended Monitoring
If payment is missed, ADT will first suspend professional monitoring service while leaving the equipment active. Essentially this means that the alarm system will still work locally (sound sirens, send alerts to an app, etc) but ADT monitoring centers will not dispatch emergency responders if the alarm is triggered.
ADT typically allows 30-90 days past due before suspending service. The goal with suspended monitoring is to incentivize the customer to bring their account current. Of course this also removes the main benefit of ADT service – the 24/7 professional monitoring.
Equipment Retrieval
After monitoring is suspended, if the past due amount remains unpaid, ADT will begin the process of retrieving their equipment. Technicians will be dispatched to uninstall all ADT hardware including control panels, keypads, motion sensors, cameras, and any other leased equipment.
This equipment retrieval can happen 90-180 days from the initial suspended account depending on specific contract terms and state regulations. Once the equipment is uninstalled the customer is left with no functioning alarm system from ADT.
Can I keep using the ADT equipment?
No, all ADT alarm equipment is leased, not owned. If you stop paying you must return the equipment or ADT can charge you the full cost of the devices. The equipment is designed not to function without active monitoring service.
Early Termination Fees
In addition to losing service and equipment, canceling ADT monitoring before your contract term is up will typically trigger early termination fees. These fees are specified in the original ADT contract, usually $500 or more depending on how many months are left.
The intent of early termination fees is to recover revenue ADT would have received by keeping service active for the full contract period. These fees can be substantial, so its important to review your contract and consider termination costs before stopping ADT service.
Can I avoid paying early termination fees?
The main ways to avoid termination fees are:
- Fulfill your entire original contract term before canceling
- Move residences and transfer service to new homeowners
- Prove breach of contract by ADT
If you can show just cause for canceling such as failure to provide services outlined in your contract, you may be able to exit a contract without termination fees. However, this can be difficult to prove.
Dealing with Collections
If service is canceled with an outstanding balance owed, ADT will typically turn accounts over to collections within 90-180 days. Like any collection account, this can negatively impact your credit score until the balance is addressed.
Once in collections, the full unpaid amount including service charges, equipment fees, and termination fees will be due. ADT collections will pursue standard credit recovery procedures such as collection calls and letters.
To avoid collections, it is advisable to pay off any remaining contract balance or work out a payment plan with ADT. You can often negotiate settlement of an account for less than the full amount when in collections. But unpaid balances will stay on your credit report for up to 7 years.
Alternatives to Cancelling with ADT
Before deciding to stop paying ADT altogether, consider alternatives that can preserve your service, credit standing, and security needs:
Suspend monitoring temporarily
If money is tight for a short period, you may be able to temporarily suspend monitoring service rather than cancel entirely. This pauses your monthly costs while keeping the contract active.
Transfer service to a new homeowner
If moving, home security contracts can often be transferred to the new owners rather than canceled. This avoids termination fees and keeps the new owners protected.
Negotiate a buyout
You may be able to negotiate with ADT to settle your remaining contract for a lower lump sum buyout payment. This can save substantially on termination fees.
Switch to a lower cost plan
Downgrading to a lower tier ADT plan with fewer features can reduce your monthly costs, allowing you to maintain service and monitoring.
Cancel within trial period
If within ADT’s trial period (typically 30 days), you can cancel without penalty. This avoids both termination fees and collections.
Conclusion
Canceling your ADT service before fulfilling your contract can lead to significant consequences including loss of equipment, termination fees, suspended monitoring, and potential collections actions. However, viable alternatives exist to maintain your security services and avoid these outcomes if possible. Reaching out to ADT to explore these options is advisable before stopping payment entirely.
