A collection agency for security and alarm companies is a licensed third-party firm that recovers unpaid monitoring fees, early termination charges, and overdue invoices on behalf of residential alarm providers and commercial security firms. Effective alarm industry collection requires understanding two distinct account types — residential consumer accounts governed by the FDCPA, and commercial B2B contracts governed by the original service agreement and applicable state law — and applying the right recovery approach to each. Kinum’s dedicated security industry division handles both tracks, covering accounts from small independent dealers through enterprise clients like Securitas and ProTech Security, across all 50 states.
Managing the Safety of Your Revenue: Expert Debt Recovery for the Home Security Industry
In the home security and burglar alarm industry, your business is built on trust and Recurring Monthly Revenue (RMR). However, when B2B commercial contracts or B2C residential accounts stall, your cash flow takes a hit.
That’s where a specialized partner makes the difference—whether it’s recovering overdue residential balances or handling more complex business-to-business accounts. We provide both consumer (B2C) and commercial (B2B) collections services, helping you recover unpaid invoices from property managers, builders, and corporate clients while protecting your hard-earned brand reputation.
Industry Leaders Trust Kinum
We pride ourselves on being the preferred partner for security professionals. At the time of writing this article, our clients include:
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Securitas
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Ranger Armored Services
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ProTech Security
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U.S. Protective Services
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Agralarm Inc.
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…and many more.
Why Choose Kinum for Your Security Firm?
We provide a comprehensive suite of tools designed to filter out bad debt and maximize recovery. In the security industry, our recovery rates typically range from 32% to 75%, depending on account age, debtor credit scores, and documentation.
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Nationwide Reach: Licensed in all 50 states and Puerto Rico.
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Bilingual Support: Collections performed in both English and Spanish.
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Dedicated Divisions: Specialized workflows for both B2B Commercial and B2C Residential accounts.
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Legal Escalation: Accounts can be recommended to our national network of lawyers for filing legal suits when necessary.
Contact us for Security Firm’s Unpaid Invoices
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Advanced Screening & Tools (Included Free!)
We use data-driven insights to ensure the most effective approach:
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Free Bankruptcy Screening: Avoid wasting resources on uncollectible accounts.
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Free Change of Address & Litigious Defaulter Checks: We track skips and identify “sue-happy” debtors before they become a liability.
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Free Credit Bureau Reporting: Available in contingency collections to provide maximum payment leverage.
Flexible Pricing Structure
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Fixed Fee: Best for early-stage debt. At approximately $20 per account, you keep 100% of the money recovered.
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Contingency: For older or tougher accounts, our fee is 40%. If we don’t collect, you don’t pay.
Gold-Standard Compliance & Security
In an industry built on protection, your data deserves the best. Kinum is:
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SSAE 18 SOC 1 Type 2 is an independent third-party audit of Kinum’s internal financial and data controls — the same certification standard used by major financial institutions and required by enterprise security clients before placing accounts.
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HIPAA, TCPA, and FDCPA compliant, ensuring every interaction is professional and legal.
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Highly Rated: With over 2,000 Google Reviews and a 4.85-star rating, our reputation matches your own.
Technology & Transparency
Our 2FA-secured client portal gives you 24/7 real-time transparency. You can track progress, view monthly statements, and upload accounts via Excel—all without needing to call. For a more personal touch, you are assigned a dedicated representative to assist you.
Get Started in 48 Hours
Our onboarding is fast and seamless; your account will be active in about 2 days.
Protect your RMR and your reputation. Contact us today to see how Kinum’s diplomatic yet firm approach can recover your outstanding security industry invoices.
Sign Now – Or click here for a free consultation
FAQ — Security & Alarm Company Debt Collection
How do alarm companies collect unpaid monitoring fees from residential customers?
Residential alarm monitoring accounts fall under the FDCPA, which governs how third-party collectors can contact the customer. The standard recovery process moves from written demand letters — sent under the alarm company’s name or the agency’s letterhead — to telephone outreach, credit bureau reporting for eligible balances, and legal escalation if warranted. Kinum’s fixed-fee demand service is the most cost-effective entry point for high-volume, low-balance residential monitoring accounts, recovering money without a contingency percentage on every dollar collected.
Does the FDCPA apply to alarm company debt collection?
It depends on the account type. Residential consumer accounts — homeowners and tenants with personal monitoring contracts — are covered by the FDCPA. This means Kinum must send a written debt validation notice within five days of first contact, respect calling hour restrictions (8 AM–9 PM local time), and comply with Regulation F’s contact frequency limits. Commercial accounts — property managers, businesses, builders — are B2B contracts governed by the original service agreement and applicable state commercial law, not the FDCPA. Kinum operates dedicated workflows for each track.
What happens when a customer stops paying their alarm monitoring contract?
When a customer stops paying, the alarm company typically continues providing monitoring service while attempting internal collection through billing statements and direct outreach. After 60–90 days without resolution, the account is best transferred to a third-party collection agency. At that point, Kinum initiates the appropriate collection track — fixed-fee demand letters for early-stage accounts, contingency collection calls for older or more resistant accounts — and, where the contract includes an early termination clause, pursues the full contractual balance owed. Recovery rates drop significantly after 180 days, so earlier placement consistently produces better results.
How long should an alarm company wait before sending an account to collections?
Industry experience points to 60–90 days past due as the optimal handoff window for residential alarm monitoring accounts, following at least two internal billing attempts. For commercial accounts — property managers, corporate clients — the threshold may be slightly longer given the relationship dynamics, but 90–120 days is the outer limit before recovery rates begin dropping materially. Kinum’s recovery rate data shows the 32–75% range depends heavily on account age: accounts placed before 90 days consistently fall in the upper half of that range.
Can an alarm company report unpaid contracts to the credit bureaus?
Yes, for eligible accounts. Residential consumer accounts (covered by the FCRA) can be reported to Equifax, Experian, and TransUnion through a collection agency, subject to pre-reporting notice requirements. As of 2023, the major bureaus no longer include medical debts under $500, but alarm and security monitoring debts are not classified as medical debt and remain reportable regardless of balance size. Kinum includes free credit bureau reporting as part of the contingency collection service, providing additional payment leverage on accounts where the debtor has an active credit profile.
What is RMR and why does it matter for alarm company debt collection?
RMR — Recurring Monthly Revenue — is the predictable monthly income an alarm company earns from active monitoring and service contracts. It is also the primary valuation metric buyers use when acquiring alarm account portfolios, with multiples typically ranging from 30x to 50x RMR. Unpaid accounts that are not recovered do not just represent a cash flow gap — they represent lost company valuation at the point of sale. Effective debt collection protects not only monthly income but the long-term asset value of the alarm dealer’s subscriber base.
How do you collect on an early termination fee for a security alarm contract?
Early termination fees are contractual obligations — when a customer cancels a multi-year monitoring contract before its expiration, the remaining balance is owed under the terms of the original agreement. Collecting ETFs requires documentation of the original signed contract, the cancellation date, and the amount remaining under the term. Kinum’s pre-litigation and documentation review process verifies this paperwork before outreach begins. For residential ETF accounts, the FDCPA applies to the collection process. For commercial ETF accounts, the collection strategy follows contract law and UCC provisions applicable in the debtor’s state.
What is the difference between B2B and B2C alarm account collections?
B2C (residential) alarm accounts are contracts with individual homeowners or tenants for home monitoring service. These are governed by the FDCPA, require validation notices, and must respect consumer contact restrictions. B2B (commercial) alarm accounts are contracts with businesses, property managers, builders, and corporate clients for commercial security systems and monitoring. These are not covered by the FDCPA — they are governed by the original service agreement and applicable commercial law, allowing more direct and persistent outreach. Kinum maintains dedicated divisions for each track, ensuring the correct compliance framework is applied to every account from day one.
How much does a collection agency for alarm companies typically charge?
Kinum offers two models. The fixed-fee service charges approximately $20 per account — you keep 100% of every dollar the customer pays back to your company. This works best for early-stage accounts (under 90 days) and high-volume, lower-balance residential monitoring accounts. The contingency service charges 40% of amounts actually collected, with no fee if nothing is recovered. This works best for older accounts, larger balances, and commercial contracts where more intensive outreach is warranted. Free bankruptcy screening, litigious defaulter checks, and change-of-address tracking are included with both services.
Can a collection agency collect alarm accounts across all 50 states?
Not all of them — only those licensed in the relevant states. A collection agency must hold an active license in the state where the debtor is located, not just where the alarm company operates. This matters because residential customers move, and commercial account signatories relocate or restructure. Kinum holds active collection agency licenses in all 50 states and Puerto Rico, meaning every account in your portfolio can be pursued regardless of where the customer has moved. Kinum’s national network of attorneys covers all 50 states for accounts that escalate to legal action.
How does Kinum handle commercial alarm accounts from property managers and builders?
Commercial accounts from property managers, builders, and corporate clients are B2B contracts handled on Kinum’s dedicated commercial track. Because these accounts are not governed by the FDCPA, Kinum’s commercial collectors can pursue them more persistently and directly than residential accounts — contacting accounts payable departments, facility managers, and business owners without the calling hour restrictions or frequency caps that apply to consumer collection. Kinum’s debtor research process includes a credit check on the business entity, a review of personal guarantees signed by principals, and a UCC filing check to assess asset availability before recommending legal escalation.