Attn Business Owners/Managers :: form letter to opt out of "auto-renew contracts"

[staysafeonline]

Attn Business Owners/Managers :: form letter to opt out of "auto-renew contracts"

Greetings all - in my non-spyder life, I own a company that does IT consulting for small business. One of the things that has been happening to a bunch of our clients and potential clients is that they get stuck in auto-renew contracts for copiers, telephone/internet services etc. In some cases, this is costing them thousands of dollars over the course of a year (or sometimes 3 years). So to avoid this happening we have put together a form letter we are asking all of our clients to send to their various service providers that informs the service provider that they wish to OPT-OUT of any auto-renewal clauses in the contract that was signed. By doing this, you get to re-negotiate with your current provider or shop for other providers while saving money, improving features or both.

So I realize all that sounds like a sales pitch -- it isn't. The reason I am posting this is that I wanted to share the letter template we put together for clients in case any Spyderlovers own a business where you pay for internet/telephone/copiers/have an IT vendor, etc so that you can use the letter to opt-out of the auto-renewal clauses in your contracts.

Note: I am not a lawyer, don't play one on tv and didn't stay at a Holiday Inn Express last night. Please use this template letter at your discretion and consult your contract, local, state and Federal laws regarding any executed contract. This template is as-is and has no warranty! :joke::joke:

Here is the letter we are using:

<enter date>

<Enter Vendor Name>
<Enter Vendor Street Address>
<Enter Vendor City, State Zip>


Subject: Opt out of Auto Renewal Clause in Contract
Account Number: <Provide vendor account number>


In accordance with the terms of our contract signed on <enter date>, please accept this letter/fax as official notification of our desire to OPT OUT of the auto-renewal clause in our agreement for services. This letter does not modify any other terms/services of our contract.

Upon completion of our current term, please put us on a “month to month” contract.

Please send acknowledgement of your receipt of this letter to:

Contact Name: <enter contact name>
Contact Email: <enter contact email>
Contact Fax: <enter contact fax>

Thank you in advance for your prompt reply.

Regards,
<type in your name>
<type in your title>
​

Possible Vendors to Contact:

• Internet provider (could be the same as telephone company)
• Telephone provider (could be the same as the internet company)
• Copier/Printer managed service
• IT Support Managed service provider
• Website maintenance vendor
• Website hosting vendor
• Online backup vendor
• Telephone system vendor
• Stamp machine vendor
• Paper shredding vendor
• Any other “subscription” service that you subscribe to

 

[Bob Denman]

What a great idea! Thanks! :2thumbs:

 

[staysafeonline]

What a great idea! Thanks! :2thumbs:

Hope it helps - I mean - us business owners need to have more money to spend on our spyders!

The other thing i am encouraging clients who are signing NEW telecom contracts to do is to strike through the entire auto-renewal clause. They say they won't accept it but if you tell them you'll go somewhere else, they will magically accept it (in most cases).

 

[Firefly]

Good idea for sure. I've had my dealings with this in the past.. with phone company and refuse service who said we had automatically renewed. In both cases we cancelled anyway and told them they can see us in court if they have a problem..... they never did anything.

I personally think such contracts should be illegal.

 

[staysafeonline]

I personally think such contracts should be illegal.

I agree completely!! And if there is an auto renewal it should only be allowed to auto renew for one calendar year ONE time and then it goes to month to month.

I have a client - well potential client that wants to hire my company - in a dispute with their current provider because of a contract they signed in 2007 (5 years ago). Sales person is saying the contract autorenews and they can't cancel it. I got totally worked up about this (because they are getting taken advantage of, not because of lost $$ for me) and modified all of the contracts my contracts going forward (and asked my clients to send me opt out letters using the template I sent them so their opt out of the auto-renewal we had in place would be cancelled). Our new contracts give you the ability to opt out at ANY time with a 60 day notice (though if someone wants out sooner, I'll let them out).

Brian