What to do about a contract that was not renewed?
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What to do about a contract that was not renewed?
I had XM radio for the past 3 years I paid with a credit card which the card account was closed about 2 years ago. This past June XM radio tried to bill this closed account for renewal. XM called me requesting another card since the card on file was closed. I told them I did not want to renew and they said OK and gave me 15 days to change my mind. I did not change my mind but XM called about 30 days later and said that I owed them $28.59 which they said was the balance owed on my new 3 year account. They said they billed the closed account and was paid $436.28. I did not authorize this and now colections are calling me.l
Asked on August 31, 2010 under Bankruptcy Law, Tennessee
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
Can a company force you to sign up for service, sign a contract, or renew a contract or service against your will? No.
However, depending on the terms of the previous contract, it may be the case that you had to not renew in a certain, specific way--e.g. provide notice of nonrenewal in writing, in a certain time frame. If that's the case, it may be that the way you did not renew was ineffective and you are therefore obligated for another contract term.
The first thing to do is to look at the agreement/contract you'd had, and to study very carefully whether it automatically renewed unless you did not renew in the correct fashion.
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