October 9th, 2012 by William Wentowski
A vicious trend has developed among prominent carrier service providers called auto-renewals also known as "evergreen" clauses. Evergreen clauses are essentially an agreement between two parties that is automatically renewed or after each contract term, until canceled by the either party. For businesses, this means that you can easily become locked into contracts with poor service providers. Imagine attempting to cancel your services with a current provider, only to find out that you are contractually obligated to continue paying another year for a service you're completely unhappy with.
Hidden in your carrier service contract is language that automatically renews your services, preventing any opportunity to explore options to optimize or reduce cost on your carrier services. Be wary of auto-renewal verbiage sent by the carrier along the lines of: "Unless notified within 90 days of contract expiration date of intent to cancel services, contract will automatically renew for the same term at the same time." Locating the auto-renewal clause can be like searching for a needle in a haystack. One way find this verbiage is to call the customer service line of your carrier service provider to obtain the termination date of your contract and request this in writing. This simple process alone can save you thousands of dollars...
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