Class Action Claims Terminix Refuses to Refund Unused Portions of Canceled Contracts

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Terminix faces a proposed class action that alleges the pest control company has unlawfully charged and retained fees under contracts canceled by customers. 

The 18-page lawsuit says that although Terminix contracts are cancellable at will, such as if a consumer were to sell their home, the defendant nevertheless fails to refund customers for unused time remaining on their service agreements, and retains the leftover money as “undue profit.” 

The plaintiff, a Fort Lauderdale, Florida resident, claims to have demanded a prorated refund from Terminix after he canceled his year-long $345 contract in July 2020, shortly after it went into effect. Nevertheless, defendant Terminix chose instead to keep the apparently unearned fees, the suit alleges. 

“The refund should have been three hundred twenty-two dollars and thirty-one cents ($322.31),” the lawsuit says. “This amount constitutes what [the plaintiff] paid for services which would not be received. Since there were no services, Terminix was not entitled to any fees.” 

According to the suit, the plaintiff filed an administrative complaint against Terminix with the Florida Department of Agriculture and Consumer Services. In response to the plaintiff’s complaint, Terminix stated in a sworn affidavit that the man was entitled to a refund of $345, the proposed class action says, alleging the defendant “knew that the fees it was retaining were illegitimate, unfair, and contrary to the contract and public policy.” 

The case alleges Terminix has run afoul of the Florida Deceptive and Unfair Trade Practices Act and the state’s Consumer Collection Practices Act, which was enacted to eradicate abusive charges, fees and collection activities. 

The lawsuit looks to cover all persons or entities nationwide who canceled their annual service contract with Terminix prior to the expiration of its term and did not receive a prorated refund within the last five years. 

The suit was removed from Miami-Dade County Circuit Court, where it was initially filed on December 9, 2021, to Florida’s Southern District Court on January 14, 2022. 

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