How far can a vendor go in enforcing unfair contract terms? I don't know, but it appears that at least one company, Brink's Home Security, thinks it can use the "evergreen clause" in its contract to financially punish any customer who threatens to go to a competitor.
A Florida resident whom I will dub Mrs. House has been a customer of Brink's home monitoring service for over eight years. "I think I had called them four or five times total over the years, mainly just to check the system," Mrs. House says about the service, for which she paid $30 a month. "But the last time I called it was because we were having a lot of false alarms." She was informed the alarm system wiring for some of her window screens had gone bad and would require some expensive re-wiring not covered by her "Platinum Service" maintenance plan.
As she and her husband had been planning on re-modeling their home anyway, they ultimately decided to cancel the service. "When I called to cancel, that's when I found out about Brink's 'evergreen clause,'" Mrs. House says. The contract she had signed eight years ago was, as she knew, a three-year commitment that she had long since fulfilled. What she had not realized was that the contract also said that:
"Thereafter, this agreement will automatically continue for successive one year renewal terms unless you or Brinks give written notice of cancellation to the other at least 60 days before the initial or renewal term ends."
Since Mrs. House was just a few months into her ninth year of service when she cancelled, Brink's was therefore claiming she owed them for another nine month's of service. "Right after I called, the local dealer came and collected all their equipment, so we could no longer use the system even if we wanted to," she says. "Then almost immediately I received a cancellation notice with an invoice for $269.05 and a remittance form and envelope."
http://www.gripe2ed.com/scoop/story/2005/3/17/8131/00969