The fine prints on a contract usually carry important information that often gets overlooked by consumers.
Wendy Knowler, Consumer Columnist, wrote in her column about some assumptions consumers make about their gym or cellphone contract’s expiry dates, which could cost them a lot of money.
She says many consumers sign a two year gym or cell phone contract and assume that financial obligations automatically ends on the “expiry date”.
Listen to the full conversation on The John Maytham Show:
According to Knowler, the law requires a shared responsibility between companies and consumers.
Companies should notify its customers within 40 to 80 days before the expiry date with the options to renew or cancel; it also requires the consumer to cancel the contract in writing, she says.