Can company convert to auto renewal without your permission?
Can company convert to auto renewal without your permission?
Received my yearly bill for service contract for furnace and hot water heater repairs. In past years I always paid with a check. The last few years I've been debating if I should renew or not.
This year the renewal letter said "for my convenience" on Oct 1st of each year they will automatically renew and debit my account. I don't like this at all. Does a company need your permission to auto renew and debit your account yearly? I certainly didn't give them my OK to do this.
Francis
This year the renewal letter said "for my convenience" on Oct 1st of each year they will automatically renew and debit my account. I don't like this at all. Does a company need your permission to auto renew and debit your account yearly? I certainly didn't give them my OK to do this.
Francis
"Success is getting what you want. Happiness is wanting what you get." |
Dale Carnegie
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Re: Can company convert to auto renewal without your permission?
It does seem to be the norm now. Apple Music, the economist, Harvard business review, and certain apps (I'm sure the list is endless) sign you up for automTic renewals regardless of what you want. For each of those examples you have to go in and unsubscribe yourself.
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Re: Can company convert to auto renewal without your permission?
But did they switch to auto renewal without asking you?theDON2050 wrote:It does seem to be the norm now. Apple Music, the economist, Harvard business review, and certain apps (I'm sure the list is endless) sign you up for automTic renewals regardless of what you want. For each of those examples you have to go in and unsubscribe yourself.
I have never seen what the OP described. I'd advise them that you isn't authorize any automatic debit from the account. Or tell the bank to return the funds.
Re: Can company convert to auto renewal without your permission?
You can use a credit card from Bank of America and use its shopsafe feature. You create a spending limit and expiration date. So if there is auto renew that you do not want, it will not go through. I believe Discover and Citi have something similar but not as versatile.
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Re: Can company convert to auto renewal without your permission?
This may help.fsrph wrote:Received my yearly bill for service contract for furnace and hot water heater repairs. In past years I always paid with a check. The last few years I've been debating if I should renew or not.
This year the renewal letter said "for my convenience" on Oct 1st of each year they will automatically renew and debit my account. I don't like this at all. Does a company need your permission to auto renew and debit your account yearly? I certainly didn't give them my OK to do this.
Francis
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Re: Can company convert to auto renewal without your permission?
Be super careful about autorenewals. I can't speak for every company, but any company that puts you on auto renewal with quadruple checking with you IMO should not earn anyone's business.
The problem with blocking a charge on your credit card is that some of these companies will just start sending you invoices, then send you to collections. It's a complete joke. I honestly think that's a business model for some companies--I'm thinking directly of gym memberships.
The problem with blocking a charge on your credit card is that some of these companies will just start sending you invoices, then send you to collections. It's a complete joke. I honestly think that's a business model for some companies--I'm thinking directly of gym memberships.
Re: Can company convert to auto renewal without your permission?
I also use shopsafe, but you're talking about debiting and checks, so this is presumably a bank's checking account. I was thinking "hell no", until noticing you've got a service contract. Not so clear-- what's the difference between sending you an invoice and debiting your account, once the new contract period has started? I'd ask my bank if I wanted the finer legalities, but I'd bet they'll say "depends on your contract". And if they say "hell no", they're the people who do something about it-- perhaps a friendly call to the company recommending they clean up their business practices a bit.
That would be my small local bank where they say hello to me when I walk in the door, not the online bank where I wouldn't know how to contact a real person living on the same continent who actually knew something about US banking regulations.
That would be my small local bank where they say hello to me when I walk in the door, not the online bank where I wouldn't know how to contact a real person living on the same continent who actually knew something about US banking regulations.
Re: Can company convert to auto renewal without your permission?
I would be ticked off and somewhat alarmed and would stop doing business with them immediately if there were another company available.fsrph wrote:Received my yearly bill for service contract for furnace and hot water heater repairs. In past years I always paid with a check. The last few years I've been debating if I should renew or not.
This year the renewal letter said "for my convenience" on Oct 1st of each year they will automatically renew and debit my account. I don't like this at all. Does a company need your permission to auto renew and debit your account yearly? I certainly didn't give them my OK to do this.
Francis
Re: Can company convert to auto renewal without your permission?
Francis-fsrph wrote: This year the renewal letter said "for my convenience" on Oct 1st of each year they will automatically renew and debit my account. I don't like this at all. Does a company need your permission to auto renew and debit your account yearly? I certainly didn't give them my OK to do this.
Francis
I think auto-renewal is pretty standard for many things, especially service policies or insurance contracts. The idea is that you have continuous coverage. However, automatically debiting your account without permission is not standard. Have you ever given them permission to debit your checking account?
I'd call and tell them they can send you the renewal bill, and you'll decide at that time about manner of payment. My opinion is that they overreached.
Re: Can company convert to auto renewal without your permission?
Op here. Just to answer a few questions. I understand receiving an annual bill to keep continuous service, that's OK. I then decide if I want to renew and send in a check. This is different, they are automatically continuing my contract and are debiting payment. No, I never gave them permission to debit my bank account. Absolutely not.
This all occurred when the local natural gas company started using an outside company for services contracts. The outside company is very aggressive in their marketing trying to sell additional services that I don't want or need.
I emailed the company with my objections to this billing practice. I may also call them, if needed, but I wanted a paper trail to my initial request.
Francis
This all occurred when the local natural gas company started using an outside company for services contracts. The outside company is very aggressive in their marketing trying to sell additional services that I don't want or need.
I emailed the company with my objections to this billing practice. I may also call them, if needed, but I wanted a paper trail to my initial request.
Francis
"Success is getting what you want. Happiness is wanting what you get." |
Dale Carnegie
Re: Can company convert to auto renewal without your permission?
I agree with you that the practice of auto-debiting your bank account is unacceptable. I'm not even sure how they could accomplish that without you providing them specific instructions. At any rate, I'd call them and tell them just to send the annual renewal then you'll decide how (and if) you'll make the payment.
Re: Can company convert to auto renewal without your permission?
Apparently the first bill would be October 1. Seems like they are giving you a month to opt-out. Not the nicest thing to do, but are you sure there aren't more details in the rest of your letter?fsrph wrote:Received my yearly bill for service contract for furnace and hot water heater repairs. In past years I always paid with a check. The last few years I've been debating if I should renew or not.
This year the renewal letter said "for my convenience" on Oct 1st of each year they will automatically renew and debit my account. I don't like this at all. Does a company need your permission to auto renew and debit your account yearly? I certainly didn't give them my OK to do this.
Francis
Re: Can company convert to auto renewal without your permission?
It looks to me like they are asking for your permission, and your silence suggests to them, rightly or wrongly, that you consent. If you do not consent, tell them in writing long before October 1.fsrph wrote:Received my yearly bill for service contract for furnace and hot water heater repairs. In past years I always paid with a check. The last few years I've been debating if I should renew or not.
This year the renewal letter said "for my convenience" on Oct 1st of each year they will automatically renew and debit my account. I don't like this at all. Does a company need your permission to auto renew and debit your account yearly? I certainly didn't give them my OK to do this.
Francis
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Re: Can company convert to auto renewal without your permission?
I think whether they can or can't is only of use to the Attorney General, other consumer watchdog, or somebody who is willing to make a federal case of it. For everybody else the answer is that they did. By far the easiest thing to do is tell them "H*** NO" before the renewal, in practice it's irrelevant whether this is canceling the auto-renewal or telling them you don't want auto-renewal.
In a few instances where companies have had auto renewal as part of a contract I have served notification of non-renewal at the same time I entered into the contract. I get the agent to sign a copy for my records. This is mostly to let them know I think their business model is sleazy, I still have to tell them I already canceled when they give me notice of the renewal, but I get to add snarky remarks about their deficient record keeping.
In a few instances where companies have had auto renewal as part of a contract I have served notification of non-renewal at the same time I entered into the contract. I get the agent to sign a copy for my records. This is mostly to let them know I think their business model is sleazy, I still have to tell them I already canceled when they give me notice of the renewal, but I get to add snarky remarks about their deficient record keeping.