fallen foul of a merchant rental contract

By : Business Start Up
Published 11th March 2013 |
Read latest comment - 11th March 2013

Just a warning as I've fallen foul of a merchant rental contract.

Anyway, I signed a 36 month contract - no probs there as I knew that was the term although a bit worried as a new business and 3 years was a long time - this expired in January this year. I Duly sent in written request to cancel contract only to receive a very curt letter back advising me that the contract had extended for a further 2 years because I didn't give notice 12 months before the expiry of the 36 months that I wanted to cancel!!! Firstly, I didn't know at 24 months that I'd not want it to continue so I wouldn't have given notice at that point. whilst the salesman was very specific about the 36 month term, there was absolutely no mention of this ridiculous "on the dot, 12 months in advance" notice period, nor the 2 year enforced extension to the contract.

The upshot is they want

aceframer
Comments
You say you weren't told by the salesman about these terms and conditions.

Have you (and Trading Standards) already gone through the written contract with a fine tooth comb to check it actually says what they say it says, plse? I feel a bit embarrassed asking you the question - but it's just possible you've some wriggle room that no-one has spotted yet.

Next thought is that it might be worthwhile arranging a brief session with a solicitor to see whether he / she can spot any good options for you. Are there any solicitors near you which provide a free 30 minute session for business clients as well as individual ones?

If the terms and conditions are hidden away in the smallest of small print, it might be worthwhile talking to any trade association to which the merchant rentals company belongs. The trade association might be able to negotiate a better deal for you.

Good luck! Linda

Linda
CareersPartnershipUK

Seems to me there is no point having a 36 month contract if you have to give notice @ 24 months. Also there seems to be no point having a contract for 36 months if they auto renew for another 24 months. I'd be tempted to call their bluff, cancel any direct debits to them for machine rental. At the end of the day the merchant company would not have suffered any financial loss as the original 36 month contract was completed.

Thanks,
Barney

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