Can I cancel my alarm service since I’ve completed my original2 year contract even though the company said they automatically renewed the contract?
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Can I cancel my alarm service since I’ve completed my original2 year contract even though the company said they automatically renewed the contract?
I called to cancel my alarm service. They claimed that even though I had completed my original two-year contract they could automatically renew the contract so I could only cancel if I paid through their new contract date. Since I always pay my monthly bill by check in advance to avoid credit card charges they threatened to charge me an extra $5 per month if I didn’t allow them to use my credit card for payment I do not receive invoices and was never notified of any contract renewal. I was cancelling the service because I can no longer afford it. I certainly can’t afford to pay for the next 8 months.
Asked on December 8, 2011 under General Practice, California
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Look first at your contract with the alarm company--does it contain any automatic renewal clause, or statement of what happens if you continue paying as per the contract after the initial period is done? If the terms of the contract provide that it automatically renewed (or renewed unless you specifically provided notice of nonrenewal), that would be legal and enforceable. So would a provision stating that the act of paying after the contract was up would constitute renewal.
Then check your correspondence to/from them: did you say or do anything that would indicate an intention on your part to renew? Authorizing payment or continuing to pay when the contract ended, if you did so, might constitute an agreement to renew.
In short, if either the contract provided for renewal or you did something evidencing renewal, you are probably obligated; otherwise, most likely not.
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