please help!! advice needed about credit agreement with BT

[hanjay]

Advertising with BT:

the company i work for have a credit agreement with BT that we were told we could cancel our contract as long as we gave 40 days notice before publication deadlines. We did this and they wrote back saying its too late and have now been charged anyway, but they have also not stopped further publications that we had mentioned in the letter and have now got a huge bill from a debt collection agency.

They are saying there was no mention of the 40 days and all the contract says is we can cancel by written notice but there may may be a charge in addition to the right of cancellation under the CCA1974.

Where do we stand with this and how can a little family run company like ourselves argue back against a huge company like BT.

Any advice and suggestions will be greatly received. :-|

[hanjay]

Advertising with BT:

the company i work for have a credit agreement with BT that we were told we could cancel our contract as long as we gave 40 days notice before publication deadlines. We did this and they wrote back saying its too late and have now been charged anyway, but they have also not stopped further publications that we had mentioned in the letter and have now got a huge bill from a debt collection agency.

They are saying there was no mention of the 40 days and all the contract says is we can cancel by written notice but there may may be a charge in addition to the right of cancellation under the CCA1974.

Where do we stand with this and how can a little family run company like ourselves argue back against a huge company like BT.

Any advice and suggestions will be greatly received. :-|

[buzby]

Well - BT sold off their directory business a fair while ago, secondly - I'm unaware of any advertising being sold on 'credit' - the cost of the ad is due in full on publication (however a deposit is sometimes required). The T&C concerning your rights to cancellation will be specified in the Order Form, so I'd look to this for the exact details for the obligation on all parties.

 

Additionally, the CCA does NOT apploy to companies, only 'consumers;.

[smvtuser]

Additionally, the CCA does NOT apploy to companies, only 'consumers;.

 

The CCA does not give protection to limited companies, but sole traders and partnerships of up to 3 partners are protected.

[buzby]

This may have changed, however the definition of a 'consumer' is defined as one who does not conduct business, whether in a partnership OR on their own behest (as self-employed). Each case is obviously treated on its merits, but I would doubt whether the CCA would have any relevance to a partnership. In this situation both named parties would be jointly and severally liable for the debt, but if only 1 signed the CCA agreement...? The 'partnership' per se would be ignored.

[Prolix]

This may have changed, however the definition of a 'consumer' is defined as one who does not conduct business, whether in a partnership OR on their own behest (as self-employed). Each case is obviously treated on its merits, but I would doubt whether the CCA would have any relevance to a partnership. In this situation both named parties would be jointly and severally liable for the debt, but if only 1 signed the CCA agreement...? The 'partnership' per se would be ignored.

 

 

The Act does not apply to "consumers", it applies to individuals

 

Section 8

A consumer credit agreement is an agreement between an individual (“the debtor” ) and any other person ("the creditor") by which the creditor provides the debtor with credit of any amount

and section 189 of the Act says,

 

“individual”includes -

(a) a partnership consisting of two or three persons not all of whom are bodies corporate

(b) an unincorporated body of persons which does not consist entirely of bodies corporate and is not a partnership;

[buzby]

Putting this to the test at a local financial institution - I'm afraid there are no 'forms' to allow what you describe. Consumers MUST be individuals, and the fact there may be a partnership involved precluded the offering of the the financial products enquired about.

 

The issue remains - a single agreement in the name of more than one individual ('consumer') is not contemplated by either the RBS or Clydesdale, the reason being the person has to be accountible - and the 'Acme Partnership' with two individuals -even though not a body corporate, would not even get on the starting grid. It was asked to supit either a single or joint application. 'P'rtnerships' were now allowed.

 

Pointing out the 'flexibility' in drafting the CCA may be one thing - actually finding a supplier remotely interestede in providing such a non-standard product is quite another.

[Prolix]

Point taken, but it was you who said you "doubt whether the CCA would have any relevance to a partnership". I was merely pointing out that it did:)

[buzby]

Yes-thanks for that. I wonder if BT had the right forms either...?