DCUM Lawyers...how the hell is this legal?!?

[Anonymous]

Hi DCUM,

I hope you can provide me with some insight as I deal with trying to cancel my business WM acct.

I have had a commercial account with Waste Management (in another state) for nearly 10 years.

Over the years, their rates have raised significantly and regularly, to the point where I no longer want to do business with them.

I called today to cancel my service.

They said that I cannot cancel the service without buying out a 3 year contract.

I signed a 3 year renewal contract in 2010. I did not sign a new contract when the 3 year renewal came up in 2013 because I knew there was a possibility of us closing the business this spring (we did not).

They say that contract from 2010 includes an automatic 3 year renewal, whether or not we signed a new contract renewal in 2013. They are also saying the only way I can cancel this contract is to buy out a 3 year renewal.

I know this is not ethical, but is it legal?

The only type of renewal like this that I have seen are one year renewals for things like cell phone contracts.

[Anonymous]

I'm not a lawyer but they are the mafia. You can pay them now, or you can pay them later...

[Anonymous]

Not a lawyer, but did you read your contract in 2010 before the end of that contract in 2013? You have been under the new contract for a year now, so whatever contract you have been using for the last year is in fact the one you have to adhere to. Your 2010 contract probably does specify that without cancellation notice before the end of the three year contract that it will automatically renew for another 3 year term. If that's the case, then you are on the hook for a 3 year renewal and whatever conditions apply including the current cancellation policy.

[Anonymous]

Anonymous wrote:Not a lawyer, but did you read your contract in 2010 before the end of that contract in 2013? You have been under the new contract for a year now, so whatever contract you have been using for the last year is in fact the one you have to adhere to. Your 2010 contract probably does specify that without cancellation notice before the end of the three year contract that it will automatically renew for another 3 year term. If that's the case, then you are on the hook for a 3 year renewal and whatever conditions apply including the current cancellation policy.

It was July 2010 (so July 2013 is the end of the 3 year contract)

[Anonymous]

IANAL, but what does the contract actually say? Are you just going to take their word for it, or will you refer to the actual wording of the contract? Because if it doesn't mention automatic renewal, then I would personally send them a nastygram from my attorney and that would probably do the trick.

[Anonymous]

If the contract you signed specified automatic renewal, you are obligated to pay until 2016.

[Anonymous]

Well, did the contract stipulate the automatic renewal? Did you sign it? If so, you're obligated to pay the cancellation fee.

You're welcome. That will be $300. Where should I send the bill?

[Anonymous]

Get a hold of the contract, read through it, there's your answer.

[Anonymous]

They seemed nice on undercover boss!

[Anonymous]

OP I bet somewhere in that contract is tiny writing is the renewal provision. otherwise they wouldn't push it.

[Anonymous]

It is.

Tiny writing on the rewal contract on the back. The contract must be cancelled in writing 90 days prior to the end of the contract or it automatically rolls over into an automatic three year renewal. You cannot cancel their service by telephone, and you cannot cancel if you are within those 90 days but prior to the end of the contract. You cannot cancel when the contract expires. Only 90 days prior.

My issue is the three year automatic renewal. Three years is not a reasonable term of time.

One year, of course. Absolutely fair.

The terms of how you can cancel also are not reasonable.

Three years? Excessive and unreasonable.

There should be better consumer protection laws in place to protect consumers from this type of unethical practice.

I googled the company and pages upon pages of complaints about this practice came to light. I thought they were an ethical company. Boy was I wrong.

[Anonymous]

Anonymous wrote:They seemed nice on undercover boss!

I know, right!

They aren't.

When I was calling other companies to get their rates, they asked if I already had a provider.

When I told them it was Waste Mgt, their response was "Oooooh, call and double check. Their contract is worded in such a way that it is almost impossible for you to end service with them. Once they have you as a customer they won't let you leave. I am very sorry."

That was my first sign that I might be in trouble.

[Anonymous]

Anonymous wrote:Well, did the contract stipulate the automatic renewal? Did you sign it? If so, you're obligated to pay the cancellation fee.

You're welcome. That will be $300. Where should I send the bill?

Lol.

[Anonymous]

Just don't pay.

[Anonymous]

Scary. I just pulled out my three year contract and there is no mention of automatic renewal, thankfully. It just locked in our rate, which seemed reasonable.