Unknowingly sold into a contract: Options?
Unknowingly sold into a contract: Options?
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Triple Six

Original Poster:

1,130 posts

139 months

Thursday 29th October 2020
quotequote all
Hi all,

At the start of the year we consulted with a national firm to dispose of a lot of sensitive records.

The sales rep came out to meet us, gave us costs to remove an agreed amount of paperwork and also mentioned that they offer a regular collection service to destroy sensitive data. We signed up to this and they have been collecting monthly since January.

The trouble started throughout lockdown, they were not prepared to reschedule collections (despite our office being closed) and continued to invoice us for collections. There is no flexibility with their operations and last week I advised that we wanted to cancel their service.

I have now been informed that by signing up to their services we are tied into a 60-month contract, due to run until January 2025. There will be a staggering charge of £4,000+ to terminate early. The sales rep did not make reference to any minimum contract that we were signing up to when he met with us in January. We are a small firm and wouldn't have knowingly signed up to such a long contract when trialling a new service.

The front page of the agreement makes no reference to the 60 month term, however they have reffered me to a particular section of their extremely-small-small-print which does make reference to this.

Their TrustPilot reviews speak volumes - I wish I had read these before any dealings. Plenty of other dissatisfied customers who have found themselves in this exact predicament, unknowingly sold and tied into contracts.

Where do I/we stand with this? Any advice appreciated.

Stupeo

1,343 posts

210 months

Thursday 29th October 2020
quotequote all
How do you currently pay for them? Is there a monthly fee or per-collection fee? Any minimum requirements for collections?

Triple Six

Original Poster:

1,130 posts

139 months

Thursday 29th October 2020
quotequote all
Stupeo said:
How do you currently pay for them? Is there a monthly fee or per-collection fee? Any minimum requirements for collections?
We pay on invoice. Collection every 4 weeks, set amount every time as they collect 2 x bins.

No minimum requirement, they will collect regardless whether the bins are empty or full.

Simpo Two

89,548 posts

282 months

Thursday 29th October 2020
quotequote all
If you signed for it you're probably stuck with it. Will you save in the long run if you take the £4K on the chin now?

If they miss a collection and you can prove it could you get them on breach of contract?

Triple Six said:
No minimum requirement, they will collect regardless whether the bins are empty or full.
If you can't fill the bins every time, how about letting another company chuck stuff in (for a fee) when you have spare capacity?

Terminator X

18,113 posts

221 months

Thursday 29th October 2020
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Oh dear, didn't read the contract? Why oh why frown

TX.

Stay in Bed Instead

22,362 posts

174 months

Thursday 29th October 2020
quotequote all
Business to business.

You are bound by the contract you signed even if you didn't read it.

JuniorD

9,013 posts

240 months

Thursday 29th October 2020
quotequote all
Triple Six said:
The front page of the agreement makes no reference to the 60 month term, however they have reffered me to a particular section of their extremely-small-small-print which does make reference to this.
Looks like your firm voluntarily signed up to a contract with unfavorable terms which have only became apparent with circumstance and hindsight.

I admit I don't read every single word of tiny small print but instead place blind hope that it's all fairly equitable, but for the likes of waste disposal outfits I automatically assume they'll be dodgy shysters.

Triple Six

Original Poster:

1,130 posts

139 months

Thursday 29th October 2020
quotequote all
Simpo Two said:
If you signed for it you're probably stuck with it. Will you save in the long run if you take the £4K on the chin now?

If they miss a collection and you can prove it could you get them on breach of contract?

If you can't fill the bins every time, how about letting another company chuck stuff in (for a fee) when you have spare capacity?
Some good points raised there, thank you.

Stay in Bed Instead said:
Business to business.

You are bound by the contract you signed even if you didn't read it.
Terminator X said:
Oh dear, didn't read the contract? Why oh why frown

TX.
Thanks. Perhaps too trusting. The most frustrating part of this is that the sales rep made absolutely no reference to there being any sort of contract - it was sold to us as a convenient service.

JuniorD said:
Triple Six said:
The front page of the agreement makes no reference to the 60 month term, however they have reffered me to a particular section of their extremely-small-small-print which does make reference to this.
Looks like your firm voluntarily signed up to a contract with unfavorable terms which have only became apparent with circumstance and hindsight.

I admit I don't read every single word of tiny small print but instead place blind hope that it's all fairly equitable, but for the likes of waste disposal outfits I automatically assume they'll be dodgy shysters.
Thank you.

For reference, here is the small print:





It really is a shame that businesses operate with deceptive sales tactics. Their reviews online suggest we are only one of hundreds of customers that this has happened to. That gives me some reassurance that this is clearly a sales ploy adopted by the company as a whole.

Perhaps we should have paid more attention to the small print, however if we adopted such sales tactics we wouldn't be around very long!

plasticpig

12,932 posts

242 months

Thursday 29th October 2020
quotequote all
I would stop paying the invoices and tell them that due to Covid you consider the contract terminated due to frustration. If they do not believe this to be the case then they can take you to court.






shouldbworking

4,786 posts

229 months

Thursday 29th October 2020
quotequote all
That's not hiding something in the small print, that's you failing to do basic due diligence by reading the information clearly pointed out under a heading

Wacky Racer

40,014 posts

264 months

Thursday 29th October 2020
quotequote all
shouldbworking said:
That's not hiding something in the small print, that's you failing to do basic due diligence by reading the information clearly pointed out under a heading
Yes, I'm afraid so, thousands make the same mistake.

I would ride out the contract and at least they are doing something for the money.

You were happy to employ them for five years in the first place.

How much do they charge per collection?

Colonel Cupcake

1,288 posts

62 months

Thursday 29th October 2020
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Make sure you give written notice of your intention not to renew, first thing in the morning or you will be tied into another 5 year contract.

Wacky Racer

40,014 posts

264 months

Thursday 29th October 2020
quotequote all
Colonel Cupcake said:
Make sure you give written notice of your intention not to renew, first thing in the morning or you will be tied into another 5 year contract.
The contract is until 2025

Triple Six

Original Poster:

1,130 posts

139 months

Thursday 29th October 2020
quotequote all
plasticpig said:
I would stop paying the invoices and tell them that due to Covid you consider the contract terminated due to frustration. If they do not believe this to be the case then they can take you to court.
To be honest, I think this is what I'm going to do. The legal costs are likely to be far higher than the £4K they want to terminate. I do wonder how long they will chase before until they give up. I've already told them not to bother sending their guys to collect the waste.

shouldbworking said:
That's not hiding something in the small print, that's you failing to do basic due diligence by reading the information clearly pointed out under a heading
Thanks - but do you think the sales rep failing to mention that we are entering any form of long term contract is a fair business practice?

Triple Six

Original Poster:

1,130 posts

139 months

Thursday 29th October 2020
quotequote all
Wacky Racer said:
Yes, I'm afraid so, thousands make the same mistake.

I would ride out the contract and at least they are doing something for the money.

You were happy to employ them for five years in the first place.

How much do they charge per collection?
I think you are missing something here - we never entered any form of verbal discussion about a long term contract, it is only now that we want to cancel that we have been made aware of it. The rep sold it to us as a flexible monthly collection, not a contract we are tied into for 60 months.

Terminator X

18,113 posts

221 months

Thursday 29th October 2020
quotequote all
Tbf that Item 9 is an absolute belter / stter depending on which side of the fence you sit. I don't know how it works but perhaps "unfair terms" may get you out of jail as surely there is an obligation to bring such a term to the very front of any agreement?

TX.

2 sMoKiN bArReLs

31,323 posts

252 months

Thursday 29th October 2020
quotequote all
Always read the T & C...most salesmen are somewhat economic with the facts! Tis the truth.

But, why not meet up with the supplier & have a go at renegotiating?

Triple Six

Original Poster:

1,130 posts

139 months

Thursday 29th October 2020
quotequote all
Terminator X said:
Tbf that Item 9 is an absolute belter / stter depending on which side of the fence you sit. I don't know how it works but perhaps "unfair terms" may get you out of jail as surely there is an obligation to bring such a term to the very front of any agreement?

TX.
This is my thoughts exactly.

In comparison we have had a proposal for a contract this week, hire of a portable building, and the minimum hire term contract is very clearly stated (in big font!) on the first page along with the total contract cost.

2 sMoKiN bArReLs said:
Always read the T & C...most salesmen are somewhat economic with the facts! Tis the truth.

But, why not meet up with the supplier & have a go at renegotiating?
Their attitude and lack of empathy regarding the current lockdown restrictions in Wales are extremely poor and I really don't think there is any scope for negotiation from them. They are sitting behind their T&C's knowing they need not do anything.

Leaves a very sour taste.

Gixer968CS

794 posts

105 months

Thursday 29th October 2020
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It seems to me that clause 10 enables you to terminate early and it doesn't mention paying the 60 month term in full if you do so. Am I missing something? Looks like they're trying it on to me.

If it were me I write and terminate the contract giving the notice required in clause 10 and then stop paying. Put the £4k to one side and see if they go legal, if they do you have the money.

Gary C

13,957 posts

196 months

Thursday 29th October 2020
quotequote all
I have no real idea but

would it be worth offering 2k to agree to terminate or you will challenge the contract under the Unfair Contract Terms Act 1977 (UCTA) ?