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Alarm One Complaint - Completely unethical contracts

Review by jlfernandez3 on 2006-05-09
ANAHEIM, CALIFORNIA -- I originally had signed a 3 year contract with the company and during that time, the monthly rate had increased several times. So, after 3 years was up, I decided to cancel my contract. I faxed a cancellation request on 5/2 and was told that because I missed the magic cutoff date of 4/24, that they AUTOMATICALLY renewed my contract for another year and so, if I wanted the cancel the contract, I would have to pay for the remaining year for over $600.
Any decent and ethical business would contact the customer before the contract was over and ask them what they wanted to do, instead of automatically assuming that the customer wanted to renew. At the very least, they could go to a month to month billing, but not renew for an entire year, because my notification was 6 days late in being sent after the contract expiration date.

Do not do business with this company. Do not sign a contract with this company, because they will find any way they can to squeeze more money out of you and lock you into ridiculous contracts.
Comments:4 Replies - Latest reply on 2006-07-07
Posted by Hugh_Jorgen on 2006-05-10:
You can't blame them if you didn't read the contract. The automatic renewal is pretty standard in these types of agreements. Go ahead and put them on notice now for next year and make sure you remind them in plenty of time.
Posted by yoke on 2006-05-10:
If the contract is for 3 years shouldn't they send something out towards the end of the contract reminding them to renew or send another contract out for them to sign? They should not assume the person wants to continue.
Posted by Hugh_Jorgen on 2006-05-10:
Yoke - to answer your question, they probably should do it. But realize that including that little clause in their contracts gets them lots of renewals. I know folks in the IT business that when they find a prospect with a contract that auto-renews months in the future they will make a note to call that prospect in time to cancel. They get a lot of business by being there for the prospect at the right time.
Posted by 90713PC on 2006-07-07:
Thank you for the posting. I don't like any company that has automatic renewals.
They should have let you out of the contract.
I agree with you.
I won't use this company based upon your post.
Thank you and I'm sorry you have to deal with them.

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