What to do if I have been overcharged for an alarm monitoring contract?

UPDATED: Dec 1, 2013

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What to do if I have been overcharged for an alarm monitoring contract?

I recently signed a 36-month contract to pay $44.99/month to an alarm company for monitoring; I got my first autodrafted payment taken out for $55.99. Can I maintain that they have breached the contract if I can prove they have, indeed, overcharged me? And, if so, will this provide me a way out of the 36-month monitoring agreement?

Asked on December 1, 2013 under General Practice, Texas


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

If you signed a contract for $44.99, that's all they can charge you--though you need to review the contract and the invoice/bill carefully, to see if there were other legitimate charges (e.g. taxes; service or processing charge) which you were not taking into account. If after that, they are still overcharging you, you *may* be able to get out of the agreement IF they do not correct matters (and refund or credit any overpayment) once you bring it to their attention. A fairly small billing error (less than $12) will not invalidate a 36-month contract--it is not sufficiently "material" or important--unless the company refuses to correct it.

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