Watch Out for Automatic Renewal Clauses

When the contract expires, many users are charged for automatic renewal without their knowledge.This article teaches you how to spot the "hidden traps" in rental contracts, and through checking the details, setting reminders, and negotiating the terms of termination, to avoid paying more than you should. Key words include reminders about contract expiration, automatic renewal, and avoiding overcharging.

Why do automatic renewal clauses so often get people in trouble?

Most people who sign leases focus on the big issues like rent and the length of the lease, paying little attention to the small print.Automatic renewal clauses are usually buried at the end of contracts, using wording such as "failure to give 30 days notice will be taken as consent to renewal" or "contract will automatically extend for another year upon expiration." If you don't handle things in time, the system will quietly charge you, and in some cases will automatically renew your contract for another year.

Three steps to avoid automatic renewal.

Check the contract clause by clause before signing.

Don't sign in a hurry. Check the sections on the "term of contract" and "renewal conditions.If you see such words as "automatic renewal" or "default extension," immediately take a picture with your cell phone or make a mark, so that you can check it later.If the contract is online, you can use the keyword search function to quickly locate the clause.

Set multiple reminders.

A month or two before the contract expires, set reminders on your phone calendar, memo pad, and family group chat.For example, if a car rental contract expires on September 30, then a reminder is set on August 15, and another one on September 1, giving oneself enough time to respond.

They are also required to contact the government to discuss the matter before the deadline.

Contact the landlord or platform operator and clearly state that you do not wish to renew.If the app automatically deducts the fees, remember to cancel the payment authorization. For example, you can turn the service off in the payment agreement management section of Alipay or WeChat, to avoid the system automatically deducting the fees.

What do I do if I've already been automatically renewed?

Don't panic! Keep the original contract and your billing records, and directly contact the other party to explain the situation.According to the Civil Code, consumers have the right to cancel a service within a reasonable period of time after automatic renewal.If no agreement can be reached, then the consumer can call 12315 to file a complaint, or take legal action.

The following industries are especially prone to problems.

The most common places to find such terms are in rental housing contracts, gym memberships, cloud storage services, and equipment rental.For example, one car sharing platform automatically charges users by the week after the trial period has expired, meaning they end up paying NT $ 200 a week. By the time the user realizes what is going on, they have already paid for an entire month.It's best to take preventive measures before problems arise.