“Contract renewal”. Don’t you just cringe when you think of that topic? It’s not much fun to pour through the legalese of written contracts, but we know how important it is to do so.

 It has become quite common for service providers to require a formal contract with the purchaser, and to now also include an “automatic renewal” clause in the fine print. That auto-renewal clause could leave you legally bound to continue using a company even if you are unhappy with them at the end of your initial contract. Have any of your contracts added these auto renewals? It’s an important issue to research.

If you are pleased with the company you’re contracted with, an automatic renewal could potentially be convenient. Your contract will roll over without you having to think about it.  However, an automatic renewal can be a pain, to say the least, if you are unhappy with the current service.  If you miss the notification date specified in the contract, you could be bound to another term of unsatisfactory service.  Opting out gives you the freedom to shop around and explore all the service options.

The best way to avoid the confinement of an automatic renewal is to know when your contract was originally enacted, and when it will expire. You may have to read the fine print.  The contract should identify the time period during which you must opt out to avoid any automatic renewal.  A few months before expiration, and within the timeframe specified in the contract, provide a written letter to the company you’re contracting with to declare that you opt out of the automatic renewal. This letter doesn’t necessarily mean you will no longer be contracting with them, but it does give you the option to look into different companies. You always have the option to sign another contract with the same company.

Opting out of the automatic renewal is a simple process, but it is often neglected. “When” a contract expires is often forgotten, and few are aware their contract renews automatically. This is one reason why businesses have started to add automatic renewal to their contracts; they can retain business without actively pursuing it.

Save yourself the headache and double check your contracts now. There is no need to be roped into automatically renewing a contract. Follow these simple steps to make sure you have opted out.

1. Read the fine print and find out when your contract expires.
2. Find out if there is an automatic renewal clause in your contract. You should be able to find the full explanation and renewal terms within your contract.
3. Send a simple “opt out” letter stating you wish to not auto renew, and are exploring different options.
4. Shop around with the freedom to leave your contract.
5. After comparing your current service to alternatives, sign a new contract with your vendor of choice ... that could be the current provider, or a new one!