Dealing With Automatic Renewals In Canceling Service
What is automatic renewal?
The contract will renew unless the customer tells the business before the cancellation deadline.
Who uses them?
Home-security monitoring, magazine subscriptions, satellite radio, computer security software, office equipment leases, lawn maintenance and apartment rentals. Some cell phone contracts will automatically extend the contract length if a customer upgrades service.
How do I cancel?
Look in the contract for the deadline. Typically, the customer must send notice by certified mail one to three months before the end of the term. To avoid missing the deadline, mark your calendar right away when you first sign the contract.
Why do businesses use automatic renewals?
It’s easier to keep customers on board. Customers don’t have to go through the paperwork hassle of extending the contract, and they’re less likely to shop around with competing companies.
What if I’m moving soon?
Look closely at the contract to see whether you must pay a cancellation fee or be on the hook for the entire term of the contract renewal. If the renewal term will be for a year and you think you’ll be moving in three months, try to negotiate a shorter renewal term. Make sure you get it in writing.
Source: Florida Times-Union Jacksonville.com
