Cardsave Cancellation Trap

[Mjenko]

My apologies if this appears in the wrong place which I think it is, but I am new and when I tried to post in the Bank sector I was messaged 'This forum is not accepting new posts!'

 

I have a Cardsave Merchant Services online facility which I have never used. I have been paying £24/month. I knew I was in a 12 month contract, so waited until twelve months were up then cancelled my contract. I am then told by the cancellations department that I needed to cancel before the end of 12 months giving 30 days notice otherwise the contract rolls over into another 12 months. I therefore needed to cancel in month 23, or it would roll over again! I am therefore to be charged £150 cancellation fee plus a further 12 months at £24/month. £438! Nice little earner!

 

1) Is this even lawful?

2) Does anyone have any suggestions on how to deal with this one?

[Conniff]

Have moved you into the Bank and Finance Subforums:- General.

 

They are having a laugh and rolling contracts are not lawful. Stop your payments.

[ericsbrother]

They can recover their loss and that is the balance of your contract for the year you cancel in. The cancellation fee is mentioned in ther contract in section 7 but i am stumped as to find a reason for this on top of anything else as it is not a loss they have suffered or expect to do so.

[AvoidCardsave]

My apologies if this appears in the wrong place which I think it is, but I am new and when I tried to post in the Bank sector I was messaged 'This forum is not accepting new posts!'

 

I have a Cardsave Merchant Services online facility which I have never used. I have been paying £24/month. I knew I was in a 12 month contract, so waited until twelve months were up then cancelled my contract. I am then told by the cancellations department that I needed to cancel before the end of 12 months giving 30 days notice otherwise the contract rolls over into another 12 months. I therefore needed to cancel in month 23, or it would roll over again! I am therefore to be charged £150 cancellation fee plus a further 12 months at £24/month. £438! Nice little earner!

 

1) Is this even lawful?

2) Does anyone have any suggestions on how to deal with this one?

 

 

 

I've had the same problem as yourself. I recently ceased trading this year and cancelled my contract with Cardsave. They issued me a bill of £150 + vat for cancelling the contract and a further £200 as they want me to pay line rental up to the next rolling contract date (in 2014).

I have since read up on the Consumer Credit Act 1974 which states that if your a sole trader in a contract over 18months you are able to cancel the contract free of these fees Cardsave are charging. The act states you may have to pay a 'restocking fee' but I'm not sure how much Cardsave believe this to be.

I am currently taking this matter with Cardsave further and they are now demanding an extra £500+vat for the terminal (not sure why as I have proof this was collected from me).

Please let me know how you have got on and if anyone else has took on Cardsave and won.

 

For anyone else wanting to sign up with Cardsave please avoid them at all costs! Cardsave will tell you it is a 12 month contract but fail to mention it is a rolling contract, try it... Ring up and ask them if they offer just a 12 month contract - they will say yes, just 12 months!