I originally posted this on reddit, but some kind person directed me here!
So...
2 years ago, I agreed to promote my business on a website for a period of 24 months. I saw that the contract had an 'automatically renewing' clause, so I would be due to pay again in 2 years for a further 24 months advertising. I very clearly explained to the salesperson that I did not want to automatically renew, I just wanted the two years and that was all (at that point I could decide if it was worth featuring again).
The rep said to me that if I paid up-front for the 24 months, then the contract would not renew and he crossed out the standing order mandate on the contract so the company would just take one payment and then would not be able to take any more.
Well surprise, surprise here we are 2 years later and the company have sent me an invoice for the same amount again. I replied to them and explained what the salesman had told me, said I did not want to be on the site any more, and that I would not be paying again (not the only thing the salesman lied about as featuring on the site brought me exactly zero new customers).
Basically, they have sent me a copy of the contract, saying that I should have given them 12 months notice to cancel, the part of the contract which was crossed out was not relevant to the auto-renew bit and that they would be taking legal action if I do not pay up.
As far as I'm concerned, I have been outright lied to, the company are not acting within the 'office of fair trading' guidelines for renewable contracts (apparently this does not apply to business to business contracts). I'm 99% certain that should it go to court, a judge would agree with me, however to the very letter of the contract I should be paying.
I'm not going to pay the invoice, absolutely no way. but should I be getting a solicitor involved, should I be threatening them with action due to what's happened, should I just ignore the invoice or am I making a very big mistake and should pay up?
Please help, it's stressing me out.
(please feel free to miss out any "you should have read the contract better" type comments - I'm very aware of this now, but at that point I was very new to contracts and business type stuff!
Since posting this there have been a few developments:
What should I do next, I'm fairly sure that if I ignore, the letters will keep coming. I definitely won't be paying up until a man in a wig tells me that I absolutely have to. I'd rather not get my solicitor involved (as that costs me money) and I just don't really know the process.
Should I write back to the solicitor explaining why I won't be paying? Should I get in touch with trading standards? is this something I can tackle myself or should I accept that I need my solicitor to do it.
To be honest, I'm quite happy to tackle it all myself I just want to make sure that I'm taking the right steps and not making it worse for myself!
Thank you so much everyone, I'm happy to provide links to the contracts, reviews of the company etc if anyone want's to get their teeth into it!
Thank you again, and can't wait to hear from you all!
So...
2 years ago, I agreed to promote my business on a website for a period of 24 months. I saw that the contract had an 'automatically renewing' clause, so I would be due to pay again in 2 years for a further 24 months advertising. I very clearly explained to the salesperson that I did not want to automatically renew, I just wanted the two years and that was all (at that point I could decide if it was worth featuring again).
The rep said to me that if I paid up-front for the 24 months, then the contract would not renew and he crossed out the standing order mandate on the contract so the company would just take one payment and then would not be able to take any more.
Well surprise, surprise here we are 2 years later and the company have sent me an invoice for the same amount again. I replied to them and explained what the salesman had told me, said I did not want to be on the site any more, and that I would not be paying again (not the only thing the salesman lied about as featuring on the site brought me exactly zero new customers).
Basically, they have sent me a copy of the contract, saying that I should have given them 12 months notice to cancel, the part of the contract which was crossed out was not relevant to the auto-renew bit and that they would be taking legal action if I do not pay up.
As far as I'm concerned, I have been outright lied to, the company are not acting within the 'office of fair trading' guidelines for renewable contracts (apparently this does not apply to business to business contracts). I'm 99% certain that should it go to court, a judge would agree with me, however to the very letter of the contract I should be paying.
I'm not going to pay the invoice, absolutely no way. but should I be getting a solicitor involved, should I be threatening them with action due to what's happened, should I just ignore the invoice or am I making a very big mistake and should pay up?
Please help, it's stressing me out.
(please feel free to miss out any "you should have read the contract better" type comments - I'm very aware of this now, but at that point I was very new to contracts and business type stuff!
Since posting this there have been a few developments:
- I found out the company I signed the initial agreement with was voluntarily liquidated with HMRC - the contract was then assigned to another company (with an almost identical name). Upon questioning this, I was told that they informed me of this in February (they didn't) and that a deed of assignment does not need my authorization. I'm not sure if this second part is true, however they definitely did not inform me!
- Through online review sites etc it seems I am not the only person this has happened to! most of them seem to say to ignore letter.
- I have received a letter from a solicitor trying to collect the money - and they have added interest and £70 compensation.
What should I do next, I'm fairly sure that if I ignore, the letters will keep coming. I definitely won't be paying up until a man in a wig tells me that I absolutely have to. I'd rather not get my solicitor involved (as that costs me money) and I just don't really know the process.
Should I write back to the solicitor explaining why I won't be paying? Should I get in touch with trading standards? is this something I can tackle myself or should I accept that I need my solicitor to do it.
To be honest, I'm quite happy to tackle it all myself I just want to make sure that I'm taking the right steps and not making it worse for myself!
Thank you so much everyone, I'm happy to provide links to the contracts, reviews of the company etc if anyone want's to get their teeth into it!
Thank you again, and can't wait to hear from you all!
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