Welcome to episode 4 of our video series ‘exposing the hoodwinking’
Each week we’re bringing 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 were going to cover automatic contract extensions…
Somewhere in your agreement could be a clause that says something like. ‘This agreement shall run for the minimum term of 60 months and will automatically continue for a further 24 months, unless not less than 6 months written notice is given by you, such notice to expire not earlier than the expiration of the minimum term’.
This clause means….
If you fail to terminate your service contract in writing, exactly six months before the end of the original contract start date. The supplier has the right to automatically extend your contract for a further 24 months.
And what’s worse. If you’re not happy about it & stop paying them. They will terminate the contract and request immediate payment in full for the extended 24 months period. Based on your average monthly billing amount over the previous 12 months.
As an example…
If you fall fowl of this clause & you’re so unhappy, you decide to stop paying the supplier (and your average monthly spend for the previous 12 months was £400). The supplier will just terminate your contract & request immediate payment of £9,600 to cover the extra 24-month period.
This extension clause can vary in length too. We’ve seen 6-month periods right up to a 3-year periods, and anything in between. It simply comes down to what the individual supplier decides.
As always. Our advice is to thoroughly check your T&C’s before you sign. And if you spot an extension clause that worries you, ask your supplier to remove or change it.
And if they won’t. Don’t sign it. And find a trusted supplier who provides simple honest service with fixed prices & NO automatic extensions. Who don’t hide behind complex 1-sided terms & conditions.
…thank you for watching