Struggling to cancel and auto renewal contract

[Adonay]

Hi, I'm a long time 'lurker' in the background but now I need some support so I've signed up to get your advice regarding a contract that I'm trying to cancel ahead of renewal.

I would like your opinion as to whether I'm going crazy or if I'm right in thinking I'm dealing with an over eager credit controller on the other end of the email.

I took out a contract some time ago for career guidance and support, I've used the services many times but have decided I no longer need the services. On 21 January I received an email stating my contract was up for renewal in 30 days and if I didn't want to renew I had 14 days to cancel by clicking on a button and filling out a form.

I didn't see this email initially but it was brought to my attention on 31 January 2024 when I received ad call and follow up email from the company telling me that they had been unable to process my renewal payment as my credit card had been declined.

This is when I discovered the above email (thankfully) and I dutifully followed the instructions to cancel noting that I was only 10 days into the 14 day timeframe that had granted, I then forwarded the acknowledgement to the credit controller and informed them I wouldn't be making payment.

The response came back that they were within their rights to renew the contract early. It took some back and forth to gather out where that came from but they state they are relying on clause 6.3 which reads:

"We accept payment by credit or debit card. Unless otherwise agreed with us, you must make payment for the Membership Services for the Subscription Period in advance of either your initial subscription period, or the renewal of your existing membership. We may take the renewal of your subscription up to 90 days in advance of your expiry date."

They are specifically relying on the last line that reads "We may take the renewal of your subscription up to 90 days in advance of your expiry date."

I informed them that was a misinterpretation because the whole clause is about payment not renewal and the whole of section 6 is about payment.

I also pointed out that clause 5.2 allows me to cancel the contract specifically stating:

"Where you do not wish to enter into a Renewal Period, you must provide us with written notice of termination (“Notice”) that you are terminating the Contract, effective from the end of the Initial Subscription Period or Renewal Period. Your Notice under this clause must be provided on the receipt of the renewal reminders that you will receive to the email registered to your account. Failure to inform us of a cancellation ahead of renewal will result in the subscription being taken and a strict no refund policy will be enforced."

They now insist that I cannot cancel because I have a payment outstanding but the only outstanding payment is for the renewal I've already asked to cancel.

Am I right in thinking this is a little crazy or am I missing something? Assuming I am right where do I go from here?

I have tried going back to the company via alternative means, I've been contracted direct by credit control so I sent an email to their customer support team but it was forwarded on to the very same credit controller. I feel like I'm going around in circles and not sure how to escape the loop.

Thanks in advance for your help.

[echat11]

Hi ADONAY

Welcome to LB

They have Terms and Conditions, but those Terms and Conditions might be 'unfair' because there is an in balance between the company and customer.

https://www.legislation.gov.uk/uksi/...regulation%205).

What you could do is contact CAB / Trading Standards, tell them whats happened, they will give you a reference number. Email the Credit Controller, mark it letter of complaint. Highlight the bit's in their Terms and Conditions which are 'unfair' as you have in your post above. Make sure you write 'CAB / Trading Standards Complaint Ref: XXXXXXXXXXXX', also quote The Unfair Terms in Consumer Contracts Regulations 1999.

Update the thread with their response.

[atticus]

How did you pay? There may well be an angle if payment was taken from credit card, debit card or by direct debit.

[echat11]

How did you pay? There may well be an angle if payment was taken from credit card, debit card or by direct debit.

The payment hasn't been made, that's the issue, they want payment, the OP wants to cancel.

[atticus]

Then he should tell them he has cancelled, end of story (and correspondence).

[Adonay]

Thanks for the responses so far.

Yes no payment made. This is a renewal, I guess I could talk to the credit card company but as this is a renewal and the last payment was a few years ago (it was a 2 year contract that got extended as I couldn't use the services during covid) I'm not sure if the card company will be able to support. Might be worth a call nonetheless.

I managed to get hold of CAB before they closed for the night, they recommend filing for breach of contract. They said even if they can justify clause 6.3 it doesn't remove my rights under 5.2 as they are refusing my rights under 5.2 then file for breach of contract. I took a look at the letter template they recommend and it doesn't quite fit my use case so I'll have a go at drafting something and I may share back here before I send it.

[echat11]

Then he should tell them he has cancelled, end of story (and correspondence).

Overzealous Credit Controller unable to 'compute', 'I want to cancel'.

[atticus]

It is not for you to sue. Stop all possibility of payment, and see whether they are so misguided as to take you to court.

[echat11]

This is straightforward to understand -

https://assets.publishing.service.go...scriptions.pdf

[Adonay]

Thanks again for your thoughts, I feel better about the situation now.

I'm going to email the customer service team now and ask for someone other than this credit controller to look into my account, hopefully someone with some sense will read it and tell this guy to back down. I'll reference the CAB call and wait to see what comes back, with any luck I can put and end to this.

[PallasAthena]

I agree with your analysis of the contract, it's clause 5.2 you are relying on, clause 6 is irrelevant. And as an aside their clause that says they can charge the renewal 90 days in advance seems pretty outrageous to me! Whether it's legally unfair I'm not competent to say.

If I were you I'd follow Atticus's advice in Post #5. Don't get into further debate with them or ask anyone else there to look at it. All that will do is prolong the correspondence to little purpose. Just state your position and tell them that's the end of the matter as far as you are concerned. You have cancelled from renewal date in accordance with 5.2 and clause 6 is irrelevant. That's it. Ball back in their court. See if they issue a formal Letter of Claim under the court Pre Action Protocols. Unless you receive that or a court document ignore them.

One other thought. Do you know why their attempt to charge your credit card failed? Is there a possibility that if they keep trying to bill your card it might eventually go through? You need to ensure that can't happen.

CAB's advice seems plain wrong to me. You would only want to sue them if they had succeeded in charging the renewal subscription to your card and you wanted it back. But as you have paid them nothing there is nothing to sue them for.

[Adonay]

Thank you Paulasathena

I actually ended up replying pretty much as outlined by Atticus, its seems more appropriate to me than the advice from CAB so glad you agree on that one. I sent the compliant to customer services which is the email they outline in their T&Cs for complaints and I didn't cc the credit controller. I simply outlined the facts and told them I've followed the cancellation instructions to the letter and consider the contract cancelled confirming I will not be making any payments. As you suggest I'm going to ignore them for now unless they send a court letter

As for payment the the card they have is old and has changed numbers since then. I did call the CC company yesterday and they confirmed they'll never be able to charge that card.