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I just received a letter from their legal representative for $1200.
I need more than what I was doing for 2 years.
What is my legal position and what actions are required?
Reply to the legal representative, by certified, return receipt letter, what you just told me.
However, keep in mind that the legal representative is your enemy. Don't share any information as though he were a friend or your own attorney.
I will send that letter tomorrow.
In a sentence or two, what should I expect in legal action?
They would probably sue on the theory that they're enforcing their contract with you, and that you now owe them for 24 months and lawyers' fees and costs.
Sounds pretty scammy to me. Contact the consumer protection office in your state and ask whether these types of contracts are even legal. I've never, ever heard of a five year contract for an alarm system.
If they do file a lawsuit, don't get too freaked out. They have to prove their case against you.