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B2B Contract - Being Threatened with CCJ

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  • B2B Contract - Being Threatened with CCJ

    Hi Everyone

    I'm new to the forum so would like to say hello -

    I signed up for a B2B contract last year with CallReady.co.uk (Dolphin Communications Ltd) for a virtual telephone number. The cost was around £3.54 per month. I asked to have the number divert to an 0800 number which it turned out they could not do (not clear on their site but it turns out normal).


    There was no negotiation possible and I had to accept their standard T&C's (attached below).

    When I asked to cancel the contract they refused stating it was a 12 month contract and I must wait until the last 30 days to cancel or the contract would auto-renew. I offered to pay the remaining 10 months in one go and cancel but they insisted it was a monthly payment, which I did not pay.

    They have added late payment fees of £30 per month to the account and I now owe in the region of £391 for which they are threatening County Court action. I believe these fees amount to penalty charges which I understand are unlawful in common law.

    As I am in the last 30 days of the initial term and I have asked them to cancel the contract to prevent auto-renewal and they are refusing until I pay the amount they claim is outstanding, stating the contract will auto-renew and monthly fees (and late payment fees) will continue to accrue.

    Where to I stand on this? Is there any protection under the Unfair Contract Terms Act or CPR? Are late payment fees of £30 per month excessive in respect of a monthly payment of £3.54?

    How would I resist the penalty clause? Should I await County Court papers and use it as a defence or challenge the company prior to things getting that far?

    Does the fact that I live in Scotland change anything? (There is an exclusive English Law clause in the contract).

    Any help would be appreciated.

    Paul

    Terms and Conditions:

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  • #2
    Re: B2B Contract - Being Threatened with CCJ

    Hi PMDT and welcome to Legal Beagles.

    You are in a B2B contract and the Unfair Contract Terms Act 1977 (as amended) does apply to such contracts, as well as consumer contracts. The correct jurisdiction is normally determined by where the contract was formed, i.e. in England or Scotland. Because you are based in Scotland, it would be best for you to seek advice from a solicitor as the exclusive English Law jurisdiction may or may not be enforceable.
    Life is a journey on which we all travel, sometimes together, but never alone.

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    • #3
      Re: B2B Contract - Being Threatened with CCJ

      Hi bluebottle - thanks for your reply

      As I understand it (from another forum) the English Law clause probably is enforceable.

      I'm under the impression that penalty clauses are unlawful - not by virtue of CPR or Unfair Contract Terms Act 1977 but in Common Law. Does an 'Administration Charge' of £30 for non-payment of a £3.54 charge count as a penalty?

      Should I make the payment I accept (of around £35) so that we are purely dealing with what I see as penalty charges should the matter go to Court and I can then dispute the entire amount claimed?

      Any advice would be appreciated!

      Paul

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