Have you been caught out with an automatic contract renewal or extension? It can be both frustrating and inconvenient as a business. You may want to move your services to a cheaper supplier, upgrade to new technology and hardware or reduce the number of users you have on your system. No matter your reason for wanting to change, auto-renewal will prevent you from doing this. Make sure you complete the following steps in order to successfully terminate your contract before it’s too late.
Make yourself aware of your terms & conditions.
With all contracts, your notice period will be stated within your terms and conditions. Make sure you are aware of how much notice you need to give in order to leave your contract without any penalties. Failure to do this may give your supplier the right to roll you into an extension for up to an additional 2 years or issue your business with termination penalties.
Submit your request in writing
When you are submitting your request to terminate your contract, always provide this in writing to your point of contact. In the event there is a dispute between you and your supplier over your notice, you will be able to provide proof of termination either via an email or writing letter. If submitting a writing letter, always keep a copy on file.
Acknowledgement from your supplier
Once you have submitted your request for contract termination, ask your supplier for confirmation that they have received your request. This is an additional step you can take in order to avoid “accidental” recurring charges to your card or bank account.
Contract auto-renewal is a deceptive tactic used by businesses to lock customers into additional contracts in order to increase business revenue with minimal effort. New business is often much more expensive than retaining existing customers and so businesses take advantage of this loophole.
As a telecoms supplier, Barclay Communications condemns the use of deceptive sales tactics as a way to tie customers into additional contract terms. We have appealed to the UK communications regulator, Ofcom, to ban the use of auto-renewal for business landline contracts.
To find out more or sign our petition to help stop auto-renewal click here.