Community Network - Have I made a big mistake

[Superjonboy]

I am a small business offering guitar lessons in a town with approximately 20,000 residents.

I was approached by the local post office (later found out it was on behalf of) with a view to advertising on the TV within the branch. The Company Called 'The Community Network' arranged a visit and I was visited today by one of their salesmen.

 

I'm now feeling completely duped as I have taken out a 24 month contract to display my advert of 30 seconds every 10 minutes within my local post office branch. What originally looked ok at £12 per week has escalated into £1831.20 over 2 years with a deposit (that I haven't yet paid but have given my details for) of £374.40.

 

I originally thought this might be a good bit of advertising within the local community. Local people visiting the post office will hopefully see my advert for guitar tuition and I'll get a few calls. From what I have read both on this Forum and on others I may well have made a big mistake. Lot's of downtime, nobody looks at it e.t.c.

 

My biggest worry is this "This agreement is a legally enforceable business to business contract and may not be cancelled or terminated except as provided by these terms and conditions."

 

Looking at it I don't think there is any way out of the Agreement, but I'm really wanting to cancel as this is a big expense for my fledgling business.

 

Do I have any right to cancel or should I have been more firm with the salesman and just said I can't sign up now?

[Conniff]

Have they justified this extra amount ?

[Superjonboy]

It's VAT and Design Costs +VAT.

 

I should have read all the small print before signing up but I had a student waiting as the salesman got here late.

 

I just feel I was pressured into buying this whole package and can't really afford it.

[Conniff]

You could cancel the contract but it will cost you. If they try to demand full payment, that could be 'an unenforceable penalty' and should they decide to go to court, they will probably only be able to recover loss of profits which is a different thing.

 

 

I can't come to the same as them as regards VAT.

 

 

12 x 52 x 2 = 1248 + 20% = 1497 ?

[Superjonboy]

Thanks for taking the time to reply.

 

It was £624 per year + £139 per year for Artwork

 

So £1248 + £278 = £1526 + VAT of £305.20 = £1831.20. Maths is not my strong point by any stretch of the imagination though.

 

I just feel so stupid. Rather than say No and that it's not really a viable option for my business I listened to his 'no brainer' and how it will generate work.

 

I hate Salesmen. I don't know why I listened as for all he knows my Ad could run on the TV in the branch and not be seen by 1 person in 2 years.

[JacqueyO]

I wish this lot could be exposed on one of the 'Rogue Trader' type TV programmes, as I only found out about them and their practices after I had signed up and would never have done it, had I been warned.

 

I've managed to get out of my contract, but only because they took 8 months to get my first ad running (they couldn't get the copy right and then the equipment was broken for a further 3+ months), so I got a solicitor to write to them, citing 'unreasonable time' to start the contract and I think they decided I wasn't going away.

 

The contract is really very tightly written and I'm not sure there are any reasons which would enable you to get out of it, as you don't have any of the rights as a business that you would have as a consumer i.e cooling off period etc.

 

Make sure you check up often that the ad is showing at the required level and that the equipment is running and complain loudly and in writing, if anything is wrong. Unfortunately they do say that if they can't run the ad because the equipment is broken, they will compensate you with extra weeks at the end of your contract, but they don't always tell advertisers when that has happened, so you must try to check as often as you can.

 

Please don't feel stupid - their salesmen are top notch at pressure selling. The same thing happened to me and I'm normally impervious to sales techniques. I heop it brings in some business for you if you can't manage to get out of it!

[Surfer01]

Did you sign in your own capacity or as "Mr C" trading as "X guitar lessons"?

[JacqueyO]

I'm a sole trade. The contract was made out to my business name, but signed in my own name, not 'trading as'. I think they only target small traders and companies and it is considered a BtoB contract, hence the first line of the Ts & Cs which states 'This Agreement is a legally enforceable buasiness to business contract and may not be cancelled or terminated except as provided by these terms and conditons'

[Superjonboy]

I signed in my own name.

I phoned them the day after (2nd July) to talk to them as human being to human being and ask if I could cancel as I could not afford it and it was not a risk I could afford to take.

They spoke to their agent who agreed to cancel the paperwork and everything would be cancelled.

 

 

In the meantime I had contacted a couple of people including my local counsellor just to try and find out where I stood legally. The information I was given was 'by law a cooling off period is required and I was within my rights to cancel.'

 

 

I wanted to leave it a few days to make sure the community network did cancel everything before I replied to this thread.

Well, guess what went out of my bank this morning...

 

 

Evidently the paperwork wasn't destroyed and made it to the office and had accidently been processed. Again I have been assured that it is in error and it will be refunded to me today by card payment.

 

 

I will keep you posted.

[ericsbrother]

as you say, a B2B contract and you cant use consumer law to get out of it. These companies have a reputation for tageting small businesses and sole traders as they cant afford to fight, the big companies can absorb the losses or claim that the person agreeing didnt have the authority to do so and then hire a good lawyer.

Sorry that you have had this trouble, have a go at your bank for allowing the payment to go out when you had cancelled the authority, they will have to refund you. You will risk legal action against you but it is unlikely, a couple of threatening letters is common but as they havent actually supplied you with a service they havent made a real loss so the threats are without substance.