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ARMY COMMUNITY SERVICE—FINANCIAL READINESS PROGRAM DO YOU HAVE A CONTRACT WITH A GERMAN COMPANY? Types of contracts may include cell phone, cable, internet, etc. WHAT YOU SHOULD KNOW TO PREPARE FOR YOUR MOVE: In Germany, contracts are automatically renewed each year unless the company receives a termination letter from you at least 3 months before the end of the contract. For example, to end a contract that is up in January, send the termination letter in September. To avoid extra fees, even if you will be here until closure, write your termination letter today! Keep a file for your records after it has been submitted. Your service will end at the end of your contract. If you still need these services for a few months after your contract has ended, consider going without the service or using a pre-paid service (especially with cell phones) to avoid having to pay for an entire year. ENDING A CONTRACT EARLY CAN COST A LOT: German companies typically charge a minimum 3-month early termination fee if you try to end a contract early even if you are moving with PCS orders. For some contracts, 6 months’ notice is required. Come to the Schweinfurt Law Center as soon as you know you want to terminate your contract to prevent overpayment. Some German companies may require you to pay the remaining amount that you pay each month through the end of your contract even if you are moving with PCS orders. For example, if you have 8 months left on your cell phone contract and you pay €100/month, then you may have to pay the full €800 to terminate the contract early! Failure to pay these debts can damage your credit score in the U.S. German companies can (and do) contact American collections companies who will then contact the credit bureaus (Equifax, Experian, and TransUnion) if you fail to pay these debts (including the early contract termination fees). RESOURCES TO HELP: Schweinfurt Law Center (Building 1, Conn Barracks, DSN: 353-8384, CIV: 09721-96-8384) can provide assistance with reading/understanding German contracts to help you prepare for your financial obligations, drafting a contract termination letter, and ensuring you are treated fairly. Army Community Service (Building 242, Ledward Barracks, DSN: 354-6933, CIV: 09721-966933) can provide assistance with reading/understanding German contracts. Financial counselors are also available to assist you with budgeting and other financial planning. Housing Office (Building 252, DPW Annex near Ledward, DSN: 354-6448, 09721-96-6448) can assist with any housing-related contracts such as your lease and utility company(ies). This termination notice is meant as a first step for a customer to terminate a German contract by initiating contact with the company or provider. The customer should fill out the termination notice and mail the termination to the provider by either fax or registered mail. Using a trackable delivery method is key for the customer to prove that he or she actually requested termination. Because each contract is different, this form may not fit every situation. However, the form will place the company on notice that the customer desires termination and should prevent any automatic contract extension. If the customer experiences difficulty with this process, schedule an appointment with the USAG Schweinfurt German attorney, Ms. Corina Vogl, by calling our appointment line at DSN 353-8384 or 09721-96-8384. More on the USAG Legal Office is available at: www.schweinfurt.army.mil/support/legal/index.htm More on how to terminate contracts at: http://teamschweinfurt.wordpress.com/2013/02/13/preparing-to-leave-germany-part-2/
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