Alarm company breach of contract?

[Phil T]

Arizona

Made the mistake of signing up for a new home automation/security system assuming that my previous contract was complete and we are now on month to month. Unfortunately, there is still 6 months remaining on the current contract.

My question is: the existing contract (outgoing company) specifically states they are able to raise rates annually not to exceed 5%. The last 2 rate increases have been above that at 5.8% and more recently (3 months ago) at 6.1%. Is this grounds to consider a breach of contract and to press for a cancellation?

Alternately, if I wanted to leverage that overage to negotiate and equitable out, what would be a good course of action to reduce the remaining 6 month commitment?

Thanks in advance,
Phil

 

[adjusterjack]

My question is: the existing contract (outgoing company) specifically states they are able to raise rates annually not to exceed 5%. The last 2 rate increases have been above that at 5.8% and more recently (3 months ago) at 6.1%. Is this grounds to consider a breach of contract and to press for a cancellation?

You can try but I doubt that cancellation will occur without you paying the cancellation fee.

You accepted the rate increase by paying them. You should have raised a stink when the first one came out at more than 5%.

You might get lucky on the last one but all the company has to do is reduce the monthly charge to conform to the 5% and apply a 1.1% per month credit to your account for the last three months and keep you stuck with the contract until it expires.