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Subject: Re: Speaking of Hostage Fees........will this come to Court???
From: Roger Blais <[log in to unmask]>
Reply-To:Records Management Program <[log in to unmask]>
Date:Thu, 9 Oct 2003 15:47:35 -0400

text/plain (102 lines)

Hi Ivo,

Some interesting reading this subject.

UBMDR encountered "hostage fees" when it asked Iron Mountain to terminate
the contract for the storage of 70 boxes in Vancouver,  so they are waiting
for the end of the contract to move their boxes here but will still have to
pay a termination fee.

The agreement with Boyd's states that there are no such fees. Schedule B,
2, e.


Hugh Smith <[log in to unmask]>@[log in to unmask]> on 2003-10-09 11:38:53 AM

Please respond to Records Management Program <[log in to unmask]>

Sent by:    Records Management Program <[log in to unmask]>

To:    [log in to unmask]

Subject:    Speaking of Hostage Fees........will this come to Court???

Here is your justification to write a memo to the CEO or CFO!!  This is
exactly what we have been talking about as to why the educated RM needs
to be involved in all decisions with regard to records both paper and
media.   I will buy you a steak dinner in Boston if you write a report
to management about why you need to be in the loop on media storage and
you get a favorable response back.

Apparently, we are not the only ones discussing Hostage Fees.  Will
this go to court or will someone blink??


We talked about how renewals and automatic renewals can hurt you, well
here is an example to show the CEO on why media needs to be controlled
by the records manager so that IT is not hurt in the same way that
paper was hurt by Hostage Fees.

Hostage Fees stifle innovation. Why improve your facility to compete if
people cannot ever get their records out?  New competition is stifled
in that new paper storage companies decide to just open for media only
because paper is held hostage.

But if the records manager presents a "White paper" to management about
avoid this trap with media, then your media will be able to go to the
best service provider, the best security provider and pricing remains

Hostage Fees are Restraint of Trade. No justification exists as Patrick
pointed out!

A disturbing trend is that companies who have huge Hostage Fees will go
into a market and rather than buy out people or compete fairly, they
offer a free year of storage. A FREE YEAR of Storage. Then a year
later, with their hostage fee insuring the company cannot leave, the
prices rise.

What are the effects:
1) We prove how stupid some Purchasing Agents are! ( Read a Contract
for goodness sake!)
2) The local company loses business and then realizes that they need to
put Hostage Fees in their Contract.
3) Due to Hostage Fees,  quality, security or service need not be
addressed. Everyone ends up in concrete boots.
4) Hostage Fees become legitimized and claims that everyone is doing it
start to be put forth.
5) In a time where terrorism and Sarbanes Oxley place corporations at
great risk, the implementation of enhanced security to meet demands of
the client diminished by the clients ability to act like any other
customer. You cannot move from a vendor not satisfying your needs to
another who will.

Where is ARMA's new contract that has language to protect the rights of
the client. This contract would  insure that movement away from sloppy
or insecure storage to higher quality or better service can occur.

In the meantime, how about telling your Purchasing Agent about this
trick of the one year free with a hostage fee? You might save your
company a lawsuit or at least the embarrassment of being held hostage.

Hugh Smith
FIRELOCK Fireproof Modular Vaults
hsmith @[log in to unmask]
(610)  756-4440    Fax (610)  756-4134

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