Business Phone contract

[WillBoden68]

Hi, wondering whether anyone can help

We were sold our business phone package (which included all call charges) in July 2020 and signed in to a 5 year contract

We were not made aware at the time and did not realise that the agreement was actually with a business finance company that the company financed the phone licences through and were therefore paid up in full for the 5-year contract

The phone company went bust / split up last year and a new company that was formed with a number of staff members offered to take over the service

The new company is unable to honour the services provided by the old company and wants to increase the prices that we signed up for, they are unable to provide the calls and want to charge for this Service

It was put to us that we could cancel the agreement with the new company but the existing contract signed with the finance company refused to cancel the contract as they paid out in full to the old company and claimed we are liable for repaying the full amount

This would leave me with a bill for the next 2 years for a phone system that I can't use

How can someone keep charging me for a service that they are unable to provide and saying that I must pay for the remainder of the contract because they paid out the company that went bust?

Any advice is greatly appreciated

 

[Mattymoomoo]

Hi, wondering whether anyone can help

We were sold our business phone package (which included all call charges) in July 2020 and signed in to a 5 year contract

We were not made aware at the time and did not realise that the agreement was actually with a business finance company that the company financed the phone licences through and were therefore paid up in full for the 5-year contract

The phone company went bust / split up last year and a new company that was formed with a number of staff members offered to take over the service

The new company is unable to honour the services provided by the old company and wants to increase the prices that we signed up for, they are unable to provide the calls and want to charge for this Service

It was put to us that we could cancel the agreement with the new company but the existing contract signed with the finance company refused to cancel the contract as they paid out in full to the old company and claimed we are liable for repaying the full amount

This would leave me with a bill for the next 2 years for a phone system that I can't use

How can someone keep charging me for a service that they are unable to provide and saying that I must pay for the remainder of the contract because they paid out the company that went bust?

Any advice is greatly appreciated

Without seeing the contract, its very hard for us to provide any real view as potentially the contract had something detailing this exact scenario. That being said, there is no way i would pay if they didn't provide the full service I had signed up for. The value of the contract will be key as to how hard anyone fights. Practically speaking they are very unlikely to be able to enforce anything given the financial situation and the fact you signed a contract with another company. Hold your nerve, or get professional legal support.

 

[Mark T Jones]

Sadly this was a pretty prolific scam back at that time.

I believe that reputable leasing companies now avoid it - but they are also adept at fighting claims.

Unfortunately, the contract you signed almost certainly relates to equipment that you actually did have - and was valid.

Have a Google, see if there are any group actions ongoing that you can join in.

 

[WillBoden68]

That seems to be the case Mark, the finance company is adamant that the contract is watertight and I am liable for making sure the payments are made until August 2025, thank you for the advice regarding Group Actions, I shall certainly have a look

 

[Paul Kelly ICHYB]

the finance company is adamant that the contract is watertight

Well, they would, wouldn't they!

On the bright side, its only a year, not 2.

If the hardware is working, find a new line supplier, port your numbers and take the pain for the next year (lines and calls will not be a lot).

Otherwise, pay for a solicitor to review the contract/s and take relevant action, but you could be throwing good money after bad!

 

[japancool]

The new company is unable to honour the services provided by the old company and wants to increase the prices that we signed up for, they are unable to provide the calls and want to charge for this Service

Do you mean they want to charge you for providing calls now?

If that's the case, you may be stuck. You could approach another company to see if they can provide the calls for less, but anyone who you approach will want to charge for it.

 

[Paul Kelly ICHYB]

The new company is unable to honour the services provided by the old company

Yes, they can, otherwise they would not be able to charge you more!

 

[WillBoden68]

Well, they would, wouldn't they!

On the bright side, its only a year, not 2.

If the hardware is working, find a new line supplier, port your numbers and take the pain for the next year (lines and calls will not be a lot).

Otherwise, pay for a solicitor to review the contract/s and take relevant action, but you could be throwing good money after bad!

Yes, it is only just over a year so will probably have to make do with it but learn from what happened the next time to setup a phone contract

 

[WillBoden68]

Do you mean they want to charge you for providing calls now?

If that's the case, you may be stuck. You could approach another company to see if they can provide the calls for less, but anyone who you approach will want to charge for it.

so the old company included calls in their price , when the new company approached us to say that they were taking over they also at the time said nothing will change, at the beggining of the year they got in touch saying that cant honour that agreement, initially charging me a fixed amount for calls and more recently saying that they cannot provide calls to Europe and therefore blocking my calls to the area. Try to cancel but they say speak to the finance company who the original company used, finance company say i cant cancel

 

[WillBoden68]

Yes, they can, otherwise they would not be able to charge you more!

Apologies, I should have said thyey can provide the services but will not honour the agreement to have call charges included

 

[WillBoden68]

Do you mean they want to charge you for providing calls now?

If that's the case, you may be stuck. You could approach another company to see if they can provide the calls for less, but anyone who you approach will want to charge for it.

Not many companies want to do just calls , they want to provide the hardware, licences and support, thats where they make money - I need to be able to cancel everything and start again but the finance company wont let me without paying up in full the contract

 

[japancool]

Not many companies want to do just calls , they want to provide the hardware, licences and support, thats where they make money - I need to be able to cancel everything and start again but the finance company wont let me without paying up in full the contract

What industry are you in and how many extensions?

 

[Paul Kelly ICHYB]

Not many companies want to do just calls

Loads of companies will supply calls (and numbers) only e.g. @cjd

 

[japancool]

Not many companies want to do just calls , they want to provide the hardware, licences and support, thats where they make money - I need to be able to cancel everything and start again but the finance company wont let me without paying up in full the contract

You're right, but with only a year left on your contract, some companies will take on calls only, if they think they have will have the opportunity to take over the rest of the contract in a year's time.

I've found your company btw. Let me know how many extensions you're talking about. I *may* be able to help - no promises, though! PM me, if you prefer. Also, do you know which network supplied your calls before?

 

[cjd]

It's too complicated to properly comment, but I'd want to be absolutely sure that its you that has the contract with the finance company not the phone company that went bust - I think it worth spending a few hundred quid with a contract lawyer.

We can, of course, provide whatever services you need - and we have a 30-day rolling contract for all our services. 5 years, wow!