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We run a small two-person business in the UK and are looking for guidance on next steps with a claim, as we've hit a dead end between two ombudsman schemes.
Background:
In 2021, our telecoms supplier 4com sold us an upgrade package. The sole reason we further upgraded was that we were promised fibre and at the time told we needed to upgrade the equipment that was only 2 years old to benefit from the faster speeds.( we was already 2 years into a 7 year contact with them at the time )
The contract explicitly states that a fibre line would be installed " The phone equipment itself was practically identical to what we already had. To fund the package, 4com arranged a rental agreement with a third-party finance company (signed on the sales rep's iPad on the same day, as part of the same transaction) at £400 + VAT per month over 7 years — roughly £36k total.
During installation, the supplier's engineer discovered fibre wasn't available at our premises. Instead of telling us, they silently kept our two old broadband lines in place and carried on billing us as if nothing had happened. We only found out five years later, by accident, during a routine cost review call, and as this time they also tried to sell us fibre again, something that we should of already had. The supplier has admitted all of this in writing — including that no contract variation was signed and no notification was ever sent.
Where we are now:
Our question:
Where do we go with the finance element? As far as we can see our only option is
Has anyone dealt with unregulated business asset finance connected to a mis-sold supply agreement? Does the supplier's written admission + the Ombudsman's formal findings give us a strong enough basis to bring a claim, and is it worth instructing a solicitor on this claim size? Any recommendations on the type of solicitor to look for (commercial litigation?) would also be appreciated.
Happy to provide more detail in comments. Thanks in advance.
Background:
In 2021, our telecoms supplier 4com sold us an upgrade package. The sole reason we further upgraded was that we were promised fibre and at the time told we needed to upgrade the equipment that was only 2 years old to benefit from the faster speeds.( we was already 2 years into a 7 year contact with them at the time )
The contract explicitly states that a fibre line would be installed " The phone equipment itself was practically identical to what we already had. To fund the package, 4com arranged a rental agreement with a third-party finance company (signed on the sales rep's iPad on the same day, as part of the same transaction) at £400 + VAT per month over 7 years — roughly £36k total.
During installation, the supplier's engineer discovered fibre wasn't available at our premises. Instead of telling us, they silently kept our two old broadband lines in place and carried on billing us as if nothing had happened. We only found out five years later, by accident, during a routine cost review call, and as this time they also tried to sell us fibre again, something that we should of already had. The supplier has admitted all of this in writing — including that no contract variation was signed and no notification was ever sent.
Where we are now:
- The communications ombudsman upheld out complaint — they found the service was substituted without informed consent, in breach of Ofcom General Condition C1, and directed the supplier to refund overpayments (~£5k) and let us exit the telecoms service agreements without penalty.
- BUT the Ombudsman confirmed they have no jurisdiction over the finance agreement — and directed us to the Financial Ombudsman Service.
- The financial ombudsman has now declined jurisdiction too, because the rental agreement is not a regulated consumer credit agreement under the CCA 1974 (we're a limited company).
- The finance company's position is that they just provided the funding, weren't party to the sale, and the agreement stands. Roughly £17,777 + VAT is still outstanding over the remaining 41 months.
- To make things worse, the supplier has confirmed in writing that the equipment only works on their platform — so even though we "won" the right to leave, we can't actually leave without the financed equipment becoming worthless. and we cant afford to look at a different supplier as we would need more equipment We're effectively trapped.
Our question:
Where do we go with the finance element? As far as we can see our only option is
- County Court claim against 4com for misrepresentation / breach — arguing they should settle the finance agreement they arranged on the back of a package they never delivered. The claim value (~£17k–£30k+ including the cost difference from our old cheaper agreement) puts us above small claims into fast/multi-track territory.
Has anyone dealt with unregulated business asset finance connected to a mis-sold supply agreement? Does the supplier's written admission + the Ombudsman's formal findings give us a strong enough basis to bring a claim, and is it worth instructing a solicitor on this claim size? Any recommendations on the type of solicitor to look for (commercial litigation?) would also be appreciated.
Happy to provide more detail in comments. Thanks in advance.