I recently found out that companies like Central Security Group and Brinks have clauses in their contracts that after the initial contract period automatically renew the contract for a year.
For example: You sign the contract for 3 years. Then when the 3 years is up, the contract is renewed for another year unless for a period of approximately 30 days prior to renewal the home owner notifies the company they wish to cancel.
This in my way of thinking is unethical. What happens if the person must leave the home or sell the home. How are they to necessarily know that on a specific date related to the contract date.
If it is in the contract and the parties to the agreement sign it…it is legal and ethical.
Let’s look at it from another angle, using your example.
A client goes out of town for an extended period and does not think to call and renew his service in advance. While he is gone, Brinks cuts off the security links to his property without his knowledge and his property is unprotected. A burglary occurs and the client suffers severe financial loss due to theft, vandalism and arson. Might the client then argue that Brinks had a duty to continue his protection until such time they had heard from him — not necessarily a “legal” obligation, but as a courtesy and good business?
Again…if its in the agreement and the client agrees to it by his signature…it is legal and ethical, IMO.
Funny that most companies don’t pull this kind of stuff.
For example:
Your internet provider,
Your Cable Company,
Your Cell phone company,
Most of them hold you to a limited contract then renew on a month to month basis.
I wonder why they don’t automatically add a year?
I wonder how many people are not aware of this year?
Yes people should read all the fine print as I know most of the NACHI members do. But that is not the case with most people. Strange how the security company’s make a point of VERBALLY mentioning to their clients that your have a X number of year contract, but somehow the year extension is just written in the contract?
This is foolish of me to mention and I know all the NACHI members know this, but its like the change in the law that was done for people who use direct Debits to there bank accounts.
It depends on what State you live in whether " Silent Acceptance" is legal without notice.
Keep in mind the " NOTICE" as we all have seen on our own credit card bills or service statements - can be jibber jabber hidden in what appears to be an advertisement - and easily missed when it is sent to you.
Texas, according to the attached link- identifies -
" Increase in fee for service" as one of their qualifying marks.
Check out the link - it’s really interesting.
Zoe
West Central Florida Chapter
also - an old Texas girl