In 2007 I purchased a home security system. The salesman told me it was a 3-year contract and at the end of the 3 years, we could choose to end or renew. In the spring on 2010 a company representative called me and indicated he could extend my contract and offer me a better rate if I wanted to renew and I informed him I had planned to cancel the contract at the end of 3 years. That same representative came to my home face-to-face and we had a more extensive conversation about this. I expressed my concerns regarding poor ethics and poor servicing of the equipment. He asked me again about extending the contract and I declined. In June of 2010 I called for service (battery issue) and became frustrated with the lack of service. I asked the representative when my contract was over because I wanted to cancel. She informed me of the date my contract was over and I informed her to cancel. My 3-year contract was paid in full and ended on 07/28/2010. On 08/27/2010 I called to inquire as to why my credit card had been charged again despite my desire to cancel. The woman informed me the cancellation "had to be in writing" (none of the previous contacts had informed me of this AT ALL) and further, that the contract "automatically renewed for a year". They further informed me that I will be responsible for another year of premiums because I did not send them my notice to cancel in writing.
I believe this company is acting fraudulently. They tell consumers that they can cancel or wont renew and then later tell them that they are out of luck because they didn't do it in writing. I believe they intentionally hope that homeowners will miss this buried clause in their paperwork, they purposefully do not speak about the clause to consumers and then inform them they are responsible for the fees.