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Ask Kim Courtney Your Own Question
Kim Courtney
Kim Courtney,
Category: Legal
Satisfied Customers: 4219
Experience:  Founder/Member at Food Business Association
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Looking for information on laws in

Resolved Question:

Looking for information on laws in california regarding automatic renewing contracts
Submitted: 9 years ago.
Category: Legal
Expert:  Kim Courtney replied 9 years ago.

Hello, I am happy to answer your question.

California does not have any law restricting automatic renewal contracts per se. There are cases prohibiting deceptive practices in which companies are not clear about their renewal policy.

The botXXXXX XXXXXne is what you agree to in your contract. Take a close look at it and see if it is clear. If the terms are specified in the contract that it renews until you cancel, there probably isn't much you can do in terms of suing them, if that is what you are thinking about.

I hope this was helpful, and good luck.


Customer: replied 9 years ago.
Reply to Courtney's Post: We have a contract signe on 4/2004 for a $275 a month service and it was for two years. We did not see in the back of the agreement a renewal notice that states;

At the expiration of this Agreement, or any renewals thereof, the Service automatically will renew for the same term, same services, and same rate as the then current Agreement or any renewals thereof. ISP shall notify Giganews via CMRR that ISP does not desire to renew, no earlier than sixty (60) days, and no later than thirty (30) days, before the expiration of this agreement or any renewals thereof.

We are now in the third term and they claim we owe until 2010 or close to six thousand.
Expert:  Kim Courtney replied 9 years ago.

This is a pretty common scheme. It certainly doesn't sound very fair, but as long as they laid out the terms, you have to abide by them.

You do still have some . This is a lot of money and a long term contract you are talking about - 2 years at a time. I would not give up so quickly. No company wants to be in litigation, so the threat of litigation can be quite powerful.

Start off with a letter to them in writing sent by registered mail, demanding that they cancel your contract and refund your money. Explain that their auto renewal was not make clear and obvious to you, that it was on the back of the agreement, and that you no longer require their services. Be clear, concise and non confrontational. It doesn't hurt to mention at the end that you are prepared to follow your legal recourses.

This will start a paper trail. Hopefully they will respond also in writing. Don't take any more phone calls, you want it all written down.

Keep on them, if you have a couple letters back and forth with no movement, start having an attorney send letters (you can even just ask a friend rather than hire someone).

If that doesn't work, bring them to court. Most cases settle just based on the threat of a court case. If not, go to the judge and tell him that this was an unfair trade practice and see what you can get out of it. There is no guarantee, but it's worth a shot if you don't have to spend to much money to litigate.

I hope this was helpful ad good luck.


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