Consumer Law, Warranties Are automatic renewable contracts legal?

[bexyqeqara]

I am trying to cancel my waste disposal service. I've had the same provider since July 2005 and when I initailly signed on they said the rate would be guaranteed for 2 years (which is was). Afterwards they made periodic raises every year or 2 which was not unexpected and I didn't argue. However, now that I'm changing to a new provider the company says that I had a 2 year contract that automaticly renewed. They want to charge me an early termination fee which equates to 2 months of service. Even though they say my new contract began in July of 2007 and expires in July 2011, they still gave me a rate increase 2 months ago. First, is this automatic contract legal in CA?. 2. Can they increase my rates before the contract expires?

 

[dee_dub]

I'm not a California lawyer, but there is nothing per se illegal about a contract that provides it shall be renewed unless one of the parties decides not to renew. I don't know whether California has made such contracts illegal but I doubt it.

Whether they can increase your rates depends on the wording of the contract - seems to me that they've been doing it periodically for a couple years already, so I would expect they could continue to do so. You might have an argument that it's bad faith for them to do so after you've given notice that you do not intend to renew.