Does Your Contract Auto-Renew?
Have you ever sign up for a subscription or on-going service and then get surprised by a renewal charge that shows up on your credit card bill weeks later? Have you gotten discouraged when you can’t figure out how to cancel? Or it’s too late to prevent the charges?
It’s called automatic renewal, and the practice is showing up more frequently in consumer contracts for all sorts of services and products. It’s happening everywhere from entertainment subscriptions to gym memberships to home security.
If you’re unwittingly auto-renewed into a new contract with a home security company and want to challenge the agreement — you’re not alone.
Georgia law requires every customer to be notified between 30 and 60 days of the original expiration date of the contract. The notification must clearly state that the contract is renewing. It must also provide clear instructions on how to cancel service if they do not want the contract to automatically renew for any term more than month to month.
Most companies are following state regulations on notification of a contract term in the original agreement. However, fewer are properly following the requirement of notifying customers that their contract is automatically renewing for more than a one-month term.
If you find yourself in this situation, check to see if you’ve received this type of written notification within the required time period. If not, you can dispute the auto-renewal and get out of the renewal without penalty.
Once you’re free from the binds of the agreement, you can resecure your home protection with EMC Security’s no-contract required policy.
Click here to download a full copy of the Georgia Auto-Renewal Law.