Cancellation rights under distance contract which is manually renewed (by me) every month

[mike00]

Hi,

 

Firstly, sorry if this is the wrong section. I wasn't sure if it should go in the retail forum or not.

 

Earlier this year I (an individual) entered into an agreement with a company whereby I rent a web server from them. At the time of entering the agreement the Distance Selling Regulations (2000) were still in force.

 

There was no minimum term to this contract, and there's no obligation for me to renew at the end of each renewal period.

 

I make manual renewal payments each month by logging into their website, and clicking 'Renew' next to the relevant service. The expiry date of the service is listed next to the 'Renew' button and the subsequent page allows for the selection of the renewal duration (1 month, 3 months, etc). If I want to cancel a server, I do not need to contact the company. Non-payment/non-renewal is considered cancellation.

 

An administrative mishap last month led to their systems automatically deleting one of my servers which involves wiping its hard disks to the point where data recovery is impossible. This deletion has caused inconvenience and loss of data.

 

I still have one server with them, but I am no longer able to trust them, and am worried the same mistake may occur with this server this month. I've therefore moved all data from it to another provider.

 

Their current contract is still worded pursuant to DSR and allows a customer to cancel within 7 days without giving reason.

 

I contacted the company informing them that I wish to use my right under the Consumer Contracts Regulations (2013) to cancel the server, and expect a pro-rated refund for the time remaining in this renewal period. They replied stated they did not believe my rights under CCR reply as I am on a "rolling monthly contract". However, it's my contention that every time I manually renew the server, a new contract is formed (for the duration of the renewal period I select) along with all the rights and protections afforded by the CCR.

 

What do you think? Am I within my rights to cancel this renewal?

 

Thanks

[BankFodder]

If it was their error - why don't you cancel on the basis of breach of contract and claim some compensation for their error?

[mike00]

I'm trying that route too, however their argument is that the server they deleted was on a separate contract, so no breach occurred regarding the server I'm cancelling.

 

I was hoping CCR would apply as it seems the simpler of the two arguments.

[raydetinu]

As it is a new contract each month, as you have to pay in advance each month to set it up, IMHO it is covered under the new regs! however it may be up to Judge to rule on that!

so you may have to resort to court action or the threat of it; if you consider it is worth it.

A question though; would the terms and the amount you pay confirmed each time or was that set up when you first started and would it be different if you started a new arrangement now?

If the terms would now be different they may have a point!

[ericsbrother]

a monthly rolling contract would require 1 month's notice, not 7 days. If they havent updated their t&c's then it is 7 days notice. You now have to decide which contract you have.