Legal Question in Credit and Debt Law in Texas

evergreen clause

recently we sold a home and called our alarm company and cancelled the service. We were told to do nothing further. We continued to get invoices but disregared them as we were told to do. Several months passed and now a collection agency is sending requests for payment. We have never been contacted by the alarm company via phone only through the mail. I called the collection agency (nasty folks). I was informed we had a evergreen clause which indicated we would pay for the service unless we notified in writing of our cancellation, therefore we were liable for the charges. Had anyone told us when we cancelled via telephone to mail a letter, we would have done so. Are we liable?? We had used the service for over 5 years with no prior problems.


Asked on 5/02/00, 1:50 pm

1 Answer from Attorneys
James Grissom Law Office of James P. Grissom

Re: evergreen clause

Quite likely you will be bound by the terms of the contract (an agreement in writing) You might have a lawsuit for Deceptive Trade Practices, but this would have to be contested at trial. This would just depend on whether this would be economically feasible for an attorney. You might be able to negotiate a partial payment without a report on your credit.

Read more
Answered on 6/19/00, 12:53 pm


Related Questions & Answers

More Credit, Debt and Collections Law questions and answers in Texas