At what point do 'deceptive business practices' become illegal?

  • Thread starter Thread starter b_kutil
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b_kutil

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I now know what is meant by "deceptive business practices". We signed a 36 month contract with Quantum alarm company to monitor our home alarm. Service was bad but we didn't want to fight it, so we waited until the contract expired then signed with a different company. Now, they won't let us cancel! The contract includes a line that says, "The original term of this agreement is 3 years and will automatically continue for successive 1 year periods unless cancelled by either of us in writing at least 30 days prior to the end of the original term or any renewal term."

We asked when we signed the original contract and were told that after the 36 month term, the rate would re-lock for an additional 12 month period, but we could cancel service at any time. Now they are telling us that of course we can cancel, but we have to pay out the entire year even if we cancel service immediately! Is this legal? Do we have any recourse?

We asked for a Buy out Cancellation letter and it says our contract expired 3/11/2009, but we have to pay 8 additional months in full (although our first payment was in March 2006 and we have already paid for July... so that should be 7 months left at most). This letter also shows the wrong account number and contract dates different from our original contract.

Any suggestions for ways to resolve this situation? They don't return my phone calls at all, and when they talk to my husband they are rude and unwilling to reach a compromise. Are there any issues we can address legally when we send the 'written notification to cancel'?

We intend to file with the BBB (mostly for the failure to respond to an alarm last month, but now we can add this to the claim as well); unfortunately, their C+ rating has set our expectations fairly low. FYI, the company we signed with, their service contractor, and our home are all based in TX, if that makes a difference.

The way they interpret the contract, it would renew forever without us ever authorizing an extension. We were never informed of the renewal and have yet to see anything that shows a date beyond March 2009. Obviously unethical, but is it legal?

Thanks, BK
 
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