Protect America Surprise cancellation fee Austin , Texas
This company is running a scam, and engaging in what appears to be illegal activity.
When you sign up, you will get alarm equipment and sign a contract locking you in for 2 years. This is normal and reasonable, since you are getting the hardware at some relatively low cost.
However, what is not made clear is that if you continue to use the service after this term, you are automatically agreeing to a renewed contract every year.
What does this automatic agreement mean? It means that you agree to pay the full year's alarm fees, totaling about $400 in my case. So if your renewal is in October, and you need to cancel in December, you owe them $330. In order to try to keep consumers like me from trashing their highly dubious practice, they offer to cut it in half. What a deal.
The initial contract mandates that you provide written intent of cancellation 60 days prior to the renewal. If your job requires you to move, if you lose your job, they are going to charge you a lot of money. From my brief research on the internet, this practice appears to be illegal.
What other company has such onerous terms? Not cable companies or cell phones, the latter of which is known to levy cancellation fees even on dead people, but only during the initial agreed-to term. No, Protect America levies the fee no matter how long you've had the service.
I intend to contact my credit card company and see what they can do about this. It's fraud, plain and simple.