Friday, May 11, 2012

Is It Legal For A Service Contract to Automatically Renew?

            Many states are enacting legislation dealing with automatically renewing service contracts. Without specific legislation, it is legal for a service provider to have automatically renewing contracts. Florida passed House Bill 751 in May, 2010 that governs auto renewing service contracts. It specifies that the terms of any auto renewal must be in "clear and conspicuous" language.
            Additionally, the service provider must give the client 30-60 days notice of the auto renewal so the client has the opportunity to cancel the contract. If the client does not cancel the contract, it will legally auto renew on the time specified in the notice. If notice is not provided and the client wishes to cancel the contract, any funds paid due to the auto renewal may be refundable. If you have an auto renewable service contract that you wish to cancel and did not receive notice about the auto renewal, contact an attorney to cancel your contract and request any funds paid due to the auto renewal.

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