How to write a letter to cancel a service contract

Written by robin reichert
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How to write a letter to cancel a service contract
You can terminate a service contract under certain conditions. (Thinkstock Images/Comstock/Getty Images)

You may cancel a contract with a service provider, whether for a cell phone plan or to a lawn service, providing that the terms of the contract have been breached and you follow the requirements to cancel the contract. Read your contract carefully and then notify the service company that you wish to cancel the contract. You should present a cancellation letter professionally on a good quality paper. Cancellation letters can serve as proof of the date of cancellation in the event of a billing dispute.

Skill level:

Things you need

  • Stationary
  • Word processor software
  • Printer
  • Envelope and postage
  • Copy of service contract

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  1. 1

    Review your service contract. Locate the provisions in the contract for termination of the service agreement. Write down a list of reasons that warrant cancellation of the service contract if the terms of the contract require breach of terms for cancellation.

  2. 2

    Open a new blank document on your word processor or use a business letter template. Type your full name, address and telephone number in the upper right corner of the document. Press "Enter" four times and then type today's date on the left.

  3. 3

    Type the full name of the business and the business address under the date. Include the name of the business representative and account number if applicable. Press "Enter" two times and enter your salutation "Dear [Name Of Representative]:"

  4. 4

    State the nature of the service contract and the exact effective date of the cancellation. Decide if your cancellation will take effect immediately or at a future date. Cite the section of the service contract pertaining to cancellation of services.

  5. 5

    List the reasons for cancellation of the contract, if relevant. Revoke authorisation for automatic payment deductions from your bank account or billing to your credit card. Notify your bank or credit card company that you revoked in writing the service company's authorisation.

  6. 6

    Print your letter on quality stationary and sign the letter above your typed name. Address the envelope and mail the letter. Keep a copy for your records.

Tips and warnings

  • Use spell check and grammar check to help you avoid common misspellings and typographical errors.
  • Keep a hard copy in addition to your printed copy of the cancellation letter and file it with your other important documents.
  • Give the service company two weeks notice of cancellation to update their files and billing system.
  • Beware of early cancellation fees for some types of service contracts, such as home security systems and cell phone contracts.
  • Never give your cell phone number to any company that may sell your information for marketing purposes.

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