WSVN — When you sign a contract, you know it eventually expires. Or does it? You see people who have some contracts are surprised to find the company automatically renews it if you don’t cancel. Can they do that without your permission? It’s why one woman called Help Me Howard with Patrick Fraser.
Needless to say Angie Echague has had an eventful couple of years.
Angie Echague: “Yeah, we got married two years ago. I had a baby 18 months ago, a little boy.”
When the baby came home, it was clear to Angie and her husband they needed more space.
Angie Echague: “We definitely outgrew the house and decided to buy a bigger house with an extra room for the baby.”
Now lets go back ten years and when Angie moved into her old house, she had signed a contract with an alarm company run by a family friend.
Angie Echague: “It was like family so you don’t sit there and read everything on the contract. He just told me the contract is for two years.”
In January of this year, Angie called the owner to say hi and cancel the alarm contract at the old house they were moving out of.
Angie Echague: “After we hung up, later that day, I got an e-mail saying you have a contract and you have to abide by it.”
Angie couldn’t believe a contract for two years, was still being enforced after 10 years. So she got a copy of it.
Angie Echague: “The contract states the contract was for two years and every three years after that it, renews by itself and that if you want to cancel the contract, you need to tell them in writing.”
The contract was going to automatically renew on February 25 but on January 30, Angie had told the owner on the phone and sent an e-mail that she was canceling. Giving them 26 days notice, they countered, “You had to give us 60 days notice.”
Angie Echague: “When I spoke to the young lady on the phone, she said there was nothing she can do. It had renewed and I was liable for the $700.”
The $700 would cover the next three years of alarm service for a house they don’t even live in. Unfair Angelica says.
Angie Echague: “It should be told if it’s every three years when the expiration date, ‘Hey it’s been three years, do you want to renew?’ Any other service I have, I get a notification.”
Howard, we used to get calls about alarm companies automatically renewing contracts without notify the customer, but in 2010 the law changed to require them to contact you before renewing. So can Angie automatically be renewed without her permission?
Howard Finkelstein: “If you signed a contract after 2010, legally the company must notify you between 30 and 60 days before the deadline for non-renewal. However, if you signed the original contract before 2010, like Angie did, the courts have not ruled whether the new law applies to those contracts. So this is a close call.”
We talked to the owner of Security and Fire Systems and his attorney. They do not believe the new law applies to contracts like Angie’s that were signed prior to law changing in 2010. However, to make Angie happy, they sent her a letter saying, “As a courtesy, Security and Fire Systems is releasing Angie Echague of any further financial obligations.”
In other words, the contract has ended and Angie doesn’t owe them the $700.
Angie Echague: “Yes, I am super happy I called Help Me Howard.”
Howard Finkelstein: “If you have a contract signed before 2010, go ahead and send the company a letter letting them know you have no intention of renewing the current contract. However, if they want to start a new contract that will be covered by the new law, you will be happy to sign that.”
Angie avoided going to court to see how a judge would rule out of her alarm contract after a call to Help Me Howard.
Angie Echague: “I was super impressed and happy how you guys were able to resolve something that took me almost two months to resolve.”
Patrick Fraser: “It happened quickly because the owner and his attorney changed their mind after we discussed the law with them and they wanted to make Angie happy. They look good, Angie feels great and they don’t have to go to court to fight.
Alarming situation left your ears ringing? Wanna pull the plug on it? Contract with us. No cost. No fee. We will just automatically rush in to help.
With this Help Me Howard, I’m Patrick Fraser, 7News.
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