Most long-distance companies that require a contract also provide in the fine print that if a customer does not notify the carrier within 30 days prior to the renewal date the term is extended at the same rate and term. Contracts are as long as five years and it is difficult to remember five years later, "Oh, this is the week I send a letter to BT (Best Telco) not to renew my contract, or I will have them forever."
Some states have laws that prohibit self renewing contracts. It is also possible the salesperson did not point out the fine print to you at time of sale or didn't leave you a copy of the back of the sign-up form that explained the "automatic renewal" in 3 point type. If you find you are in a self-renewal and were not informed properly, your state Consumer and Fraud Protection and/or Attorney General can often help. If you feel the deal was dirty...fight back. The second party to your contract placed odds that you would not.
TIP: Be safe, not sorry. The next time you pay your phone bill send a letter stating you do not wish your term to automatically renew unless the carrier calls you 30 days prior to the renewal to discuss rates. Place a copy of the letter in your file. This may give you some protection, should you find seven years later you are 40% above market prices and attempt to change carriers. Worse case, your bill looks higher the month after contract expiration date. You then call and negotiate a new contract and/or check the current marketplace. This is better than being captive to "BT"...the phone company sold to you by that fellow you haven't seen in seven years.
.....and are the rates guaranteed on your contract? In the current market place discounts are guaranteed, but tariffs (rates) can normally go up or down on the particular product you contracted. Choose your carrier carefully and be aware that your three-year dedicated contract probably does not guarantee "that the rates won't go up".
If you practice due diligence, it is as likely your rates may go down. If you were sold an unbelievable rate by "Best Telco" ... they'll probably "getcha" eventually. |
Frequently Asked Questions