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cel phone contract

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C

Charbomb

Guest
I had a 1 year plan with a cel phone company that ended in July. I was planning to change to a different phone company and didn't get around to calling to cancel it until now. But when i called the company to cancel they said that I had to renew for another year b/c the 30 days for me to notify them of cancellation was up. After 30 days, they automatically renew the contract for another year for me. I never received a letter notifying me of the 30 day time period. And i never got a letter asking me to approve the automatic renewal. The company said that it was in the contract that i had signed last year. And if i cancel on them now, there will be a $160 penalty fee. Can they really do this?! Am i really stuck with them for another year or else I have to pay $160?
 


L

lawrat

Guest
I am a law school graduate. What I offer is mere information, not to be construed as forming an attorney client relationship.

Yup, that is why laziness in not reading documents you sign can lead to bad results. Betcha you also didn't know that everytime you change call plans with the same company, your contract extends for at least another year term.

They can do that and it is legal. The 30 days is for you to give them notification in a reasonably timely manner of your OPTION to back out of a renewal and to exercise your OPTION to cancel. Because you did not do that, they automatically renewed. They don't have to give you notification prior to notifying, you should have given them notification of cancellation.

So, every failur to act deserves a penalty, within a contract. That penalty is the money you have to pay to cancel.

Tough luck. Good lesson: READ!!!!!!!! Schools gave you literacy, use it.
 
C

Charbomb

Guest
The thing is, i had called before the end of my contract to cancel. And the person had told me that i can't cancel before the contract ends, but that i can cancel "AT ANY TIME" afterwards....I relied on what he told me...Thus shouldn't I be able to get out, since one of the company's employees misinformed me? After all, I acted the way I did based on the information that the employee had given me.
 
L

lawrat

Guest
As always, remember my disclaimer.

You didn't explain this. Okay, in this case, you call them back and explain the following:

their employees are agents of the company, represent the company in every business aspect, including contract issues. The company is the principal. As the agent, you expect to get accurate information. You relied to your detriment and are stuck because of their error. You will report them to the better business bureau.

See what they say. Of course, nothing excuses you not reading your contract. That will be their argument, and unless you get a really stupid agent to cancel with no penalty, you are up a creek without a paddle.
 

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