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Law Educator, Esq.
Law Educator, Esq., Lawyer
Category: Consumer Protection Law
Satisfied Customers: 111683
Experience:  Attorney experienced in commercial litigation.
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Can a business refuse suspend service due to non payment but

Customer Question

Can a business refuse suspend service due to non payment but continue to charge you for services monthly until your original bill is settled and refuse to allow you to cancel even outside of contract?
Submitted: 6 months ago.
Category: Consumer Protection Law
Expert:  Phillips Esq. replied 6 months ago.

No. If services are suspended, then a business is not entitled to fees for services not used.

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Customer: replied 6 months ago.
What statute governs this in oregon if you please?
Expert:  Law Educator, Esq. replied 6 months ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
I AM A DIFFERENT CONTRIBUTOR as your other contributor opted out.
I am not quite sure the information you received is correct. This comes under contract law and it depends on what the contract you have with the business states as far as whether or not they can suspend service and you would still be liable for paying for the services under the contract.
So do you have a contract on this matter with the company?
Customer: replied 6 months ago.
We had a contract that bound us to services for one year and have been with them for two and a half. We were unable to pay two months service and they would not work with us so we tried to cancel and we were told they would suspend services and continue to bill us monthly for services until we settled the balance in full and only then would we be allowed to cancel.
Expert:  Law Educator, Esq. replied 6 months ago.
Thank you for your reply.
This is based in contract and not statute then. If you are under contract and you fail to pay under contract, they are entitled to refuse to provide service, but you are still liable because you have a contract binding you. If there was no contract between you, then the previous expert would be correct in that they cannot bill you for service they are not providing ABSENT A CONTRACT.
When parties enter into a contract they agree to be bound by the terms in the contract. When a party defaults in a contract, the non-defaulting party is still entitled to payment under the terms of the contract even though they can hold their service back until the breach is cured. If they were to sue you for breach of the contract, even though they stopped service after you failed to pay, they would be entitled to sue for damages in the amount of the remaining balance owed on the contract to the end of the term of the contract.
Customer: replied 6 months ago.
We have tried to cancel our service which is no longer bound under contract before service was disconnected and they refused.
Expert:  Law Educator, Esq. replied 6 months ago.
Thank you for your reply.
What does the contract state about cancellation?
Also, under contract law, a party can only cancel a contract if they are not in default on the contract. So if you tried to cancel in accordance with the terms of the contract prior to you going into default, then you have a claim for breach of contract against the company.

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