Alarm monitoring contract

[cureton05]

What is the name of your state? Minnesota

I signed a 3 yr home alarm monitoring contract in 7/05. Last month I received a letter stating that my contract has been sold and now another company is doing the monitoring. Then one week later the new company sends me a letter stating they are raising my monthly fee (which is on my credit card) by $10. My original contract states that the maximum that the fee can be raised is 5% per year. I did the math and the $10 is 5 times that! What are my options? Is this a breach? Don't they have to stick to the same contract? I would like to disolve the contract on this basis...can I do that legally? My thoughts are once they hit my credit card this month with the additional $10, then that's a breach and I can get out from under it. Am I right?

Thanks
ChrisWhat is the name of your state?

 

[seniorjudge]

What is the name of your state? Minnesota

I signed a 3 yr home alarm monitoring contract in 7/05. Last month I received a letter stating that my contract has been sold and now another company is doing the monitoring. Then one week later the new company sends me a letter stating they are raising my monthly fee (which is on my credit card) by $10. My original contract states that the maximum that the fee can be raised is 5% per year. I did the math and the $10 is 5 times that! What are my options? Is this a breach? Don't they have to stick to the same contract? I would like to disolve the contract on this basis...can I do that legally? My thoughts are once they hit my credit card this month with the additional $10, then that's a breach and I can get out from under it. Am I right?

Thanks
ChrisWhat is the name of your state?

If your math is correct, sounds like a breach to me.

But before you don anything, re-read the contract very closely.

 

[cureton05]

Thanks!

I've reviewed the contract thoroughly many times to make sure I don't get caught up in the legalese and double check my math. My thoughts are I could call them and I imagine they would have to agree because of the maximum 5% clause but I would prefer to dissolve the contract so I'm thinking I should wait until they actually charge my credit card so I have proof of the breach. I don't want to do business with folks like this that either don't read the contract they purchased or are fishing to see if it sticks. What would I have to do to dissolve the contract? Thanks again!