Association Adopts Automatic Renewal Model to Protect Consumer Interests
(OLATHE, KS – November 8, 2011)
The National Home Service Contract Association has taken the lead to protect consumers from a lapse in coverage by drafting and promoting a model automatic renewal clause for the home service contract industry.
In an effort to create a balanced approach in favor of consumers, the NHSCA model allows consumers to choose automatic renewal to prevent a lapse in service, while also offering a simple process to cancel if their preference changes regarding automatic renewal.
Many customers prefer the convenience and uninterrupted service an automatic renewal provides. However, some states have erroneously suggested that all automatic renewals are bad for consumers. This is not the case. “The issue is how should an industry respond when a customer decides they did not intend to renew,” said Mark Celichowski, President of the NHSCA. ” We take an approach favoring the consumer.” The actual NHSCA model can be found in the NHSCA Resource Center.
“Automatic renewals on consumer contracts are a beneficial consumer choice, but so is the consumer’s right to cancel. Our model law was developed with input from state legislators as a balanced and fair approach to preserve consumer choice and prevent abuse,” Arthur J. Chartrand, NHSCA Counsel, said. “As an association, we wanted to take the lead and give states model language.”
The NHSCA is a nonprofit 501(c) (6) industry trade organization of member companies serving home service contract providers and consumer interests throughout the United States. To learn more about the NHSCA and to find answers to the most common questions regarding the purchase of home service contracts, please visit us at www.homeservicecontract.org
MEDIA CONTACT: Nancy Besa, Besa Public Relations • 816-674-4775 • Email