NOTICE BEFORE AUTOMATIC CONTRACT RENEWAL.

View NCGA Bill Details2015-2016 Session
House Bill 631 (Public) Filed Monday, April 13, 2015
AN ACT TO REQUIRE WRITTEN NOTICE OF AUTOMATIC CONTRACT RENEWAL FIFTEEN TO THIRTY DAYS PRIOR TO THE AUTOMATIC RENEWAL.
Intro. by Jackson.

Status: Ref To Com On Rules and Operations of the Senate (Senate Action) (Apr 30 2015)
H 631

Bill Summaries:

  • Summary date: Apr 29 2015 - More information

    House committee substitute makes the following changes to the 1st edition.

    Amends GS 75-41 to require people (was, people, firms, or corporations), engaged in commerce selling, leasing, or offering to sell any type of products or services pursuant to a contract that automatically renews without cancellation, to do the following three things: (1) disclose the automatic renewal clause clearly and conspicuously in the contract or contract offer; (2) disclose clearly and conspicuously how to cancel the contract in the initial contract, contract offer, or with delivery of products or services; and (3) for automatic renewal exceeding 30 days, provide written notice to the consumer by personal delivery, electronic mail, or first-class mail at least 15 days, but no earlier than 30 days, before the date the contract is to be automatically renewed and include information concerning the date the contract will automatically renew without consumer cancellation.  Makes organizational, technical, and clarifying changes. Adds language that provides that this section does not apply to any entity that is subject to regulation by the Federal Communications Commission or by the NC Utilities Commission. Also exempts entities doing business directly or through a franchise, license, certificate, or other authorization issued by a political subdivision of the state from regulation under this section. 


  • Summary date: Apr 13 2015 - More information

    In addition to established provisions regarding notice of automatic contract renewal provisions, enacts new subsection GS 75-41(b1), concerning contracts between providers of products or services and consumers, establishing that contracts with automatic renewal provisions are only enforceable if, no less than 15 days nor more than 30 days prior to the automatic renewal, the provider of the products or services issues written notice to the consumer that the contract will automatically renew unless the contract is canceled. 

    Under current law, the provisions of GS 75-41 do not apply to insurers licensed under GS Chapter 58 or to banks, trust companies, savings and loan associations, savings banks, or credit unions meeting specified licensing requirements.


Printer-friendly: Click to view