Exposing the hoodwinking episode 2 – termination part 2
Welcome to episode 3 of our video series ‘exposing the hoodwinking’…
Each week we will bring to your attention a clause (usually hidden deep) within service agreement T&C’s for office equipment like printers, photocopiers & telephones. Which could cause you much pain and extra unforeseen charges in the future.
Today it’s part 2 of the dreaded termination charge.
Last week, we discussed how some unscrupulous suppliers can make you pay the whole remaining balance of the service agreement, if you want to cancel due to their poor service. Which can lead to many £1,000’s in immediate charges.
This week we’re discussing average billing levels & what can happen if you drop below them.
Somewhere in your agreement could be a clause that says something like. ‘The service agreement will be considered to have been terminated by you, if the equipment is used at monthly levels below 50% of your average monthly usage over the previous 12 months’.
This clause means. If your usage halves. Your supplier has the right to terminate the agreement & charge you the full remaining months left on your agreement, which they will calculate using your previous higher usage volumes & not your current reduced amounts.
As an example…
If there is 3 years remaining on your agreement & your average monthly spend for the previous 12 months was £200, but your current needs have reduced it to £100 a month or less. Your supplier has the right to terminate the agreement & charge you immediately for the remaining 3 years, at the previous higher rate of £200 a month. Which in this instance, is a mind boggling £7,200.
As always. Our advice is to thoroughly check your T&C’s before you sign. And if you spot a termination clause that worries you, ask your supplier to remove or change it.
And if they won’t. Don’t sign it. And go find a trusted supplier who provides simple honest service, with guaranteed fixed prices & doesn’t hide behind complex 1 sided terms & conditions.
…thank you for watching