SME Question - Unfair charges on ATM

[jaydp]

Hi my friend was operating a small business and applied for PayPoint terminal, this was approved and the BDM basically said that it would be approved if she took on their ATM the business did not make enough to satisfy the terms of operating the ATM and it was only after the installation that they advised her that £600 would need to be deposited into the ATM daily. after a few months the use of the ATM declined due to the charges it took from users. when she stopped using the ATM due to the decline Paypoint thereafter started to charge £80 +VAT weekly for non compliance several times complaints where made and they discharged some of the charges but then continued the following week. after several months another business which already had a Paypoint terminal was given an ATM to operate with no charges to the customer but Paypoint continued to charge customers on this ATM, the business eventually folded and I have calculated that approximately £9,000 has been [aid on these charges. What would the first step be to make a complaint and move forward? Your advice would be appreciated.

[R0b]

Hello
If, as you are suggesting, that the business was told after £600 would need to be deposited daily, then the business can argue that it did not agree to those terms at the time of signing up. However, I suspect it would have been in the terms and conditions signed by the business and if the business didn't bother to read them, the general rule of tough luck applies. The law will not re-write a contract or allow a business to get out of an agreement because they have made a bad bargain.

When you say the business has folded, was the business a limited company or some other business structure i.e. sole trader?

As a business, it's probably going to be difficult arguing unfair charges and recovery of them as the courts tend not to disturb business to business transactions.

[jaydp]

Thanks Rob, it was a sole trader the contract was fulfilled up until the time it closed, my thought on the matter was that they seem excessive charges and also when complained they on occasions waived the charges.
The other factor was that why did the business not offer the same or similar terms of another trader approx 150yards away.
When the business complained a new contract was sent with zero fees but had to be signed up for 5 year's
So this therefore meant a new contract agreement. I do believe that she was mislead by the Business Development Manager who said that other services would only be given on the basis of installation of the Atm. Am I correct in thinking that she should pursue a complaint based on excessive charges.. Any guidance would be appreciated thank you