Warning: Contracts Don't Always End
Many contracts for services have small print clauses that says if you do not cancel
the contract 30-days before its ending date it will automatically continue and you will
continue to pay at your current rate. Also they will say they that the cancellation must
be in writing and sent 30-days before the contract ends.
I have recently had complaints about this type of contract with alarm
service companies. One man said I signed for one-year of alarm
monitoring service and thought after one year the contract was over.
But because of the clause at the end on the contract he was billed for
6 months of service before he could get the contract canceled.
Another woman is fighting the Alarm One Company over this same type of
contract. She says she was told to write them a cancellation letter and
she did but the company claims they did not get it, and continues to
bill her for monthly service. She mailed her payment to Alarm One and
they got that letter and on the same date she mailed her cancellation
letter and they didn't get that letter. Alarm One told her she is now
obligated for a full year contract since she missed the date for the
written cancellation. Plus she says Alarm One said in her contract was
that the price would never increase from $29.99 per month to $31.84 per
month. This would be a violation of her contract by the company.
When you send a letter of cancellation always send it "request return"
that means the company has to sign that little green card and it will
come back to you by mail.
The best thing to do is never signed a contract that has an automatic
extension. If it is in the contract just scratch it out. If they give
you a problem about signing a contract with no automatic extension,
tell them you will get another alarm company, they will normally come
around, because they do not want to lose a sale on a one year contract.
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