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Sole Trader have any rights with a business mobile contract?


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I'm trying to find out if a business mobile contract is different for a Sole Trader (up to 10 employees) versus a limited company?

 

I thought I'd read somewhere that a sole trader has similar rights to a consumer? Basically, it seems, companies have no automatic rights - it's assumed they have access to lawyers, I guess.

 

I have been told because I have a business contract that consumer rights don't apply. Also that 36 month contracts are not banned for business customers? (Ofcom rules 24 month max).....and that a 14 day 'cooling off' period doesn't have to be offered to businesses??

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Hi

Can you give us a run down of events so far and it would help if we knew who the supplier is as well (I think I know but it would help to actually know)

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The Consumer Credit Act doesn't apply to an offer or supply of credit to limited companies, however, it does apply to contracts entered into by sole traders and partnerships.

 

The Consumer Rights Act refers to ‘traders’ and ‘consumers’. When you’re acting for purposes that relate to your trade, business or profession, you’re counted as a ‘trader.’ This means that a ‘trader’ can be a self-employed person, a limited company, a charity, or another individual or organisation.

 

Under the law, a ‘consumer’ is someone who isn’t acting for the purposes of a business when they deal with the trader. This means that a business that buys goods isn’t counted as a consumer under the Consumer Rights Act, and business-to-business (B2B) transactions don’t have the same protection.

 

The Supply of Goods and Services Act 1982 (“SGSA”) This applies to supply of services, hire of goods and transfers of goods other than sales, e.g. barter exchange of goods for something other than money and work and materials contracts where goods are supplied as an incidental part of a contract for work or services.

 

Micro businesses as firms which employ 0-9 employees (and this includes sole-traders); and small businesses as firms which employ 10-49 employees.

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Future Comms. (expect you guessed right, silverfox!).

 

So far, signed electronically to what I thought was an 02 contract. 02 do give a 14 day cooling off period for businesses and 24 month max contract.

However, realised afterwards that the contract is held by Future Comms (yet I don't pay them anything) who do NOT give a cooling off period and 36 month contract. I found that out when I tried to cancel 3 days into the contract. An adamant no.

 

Thank you, Andyorch for explaining the differences for me. I knew in some cases a sole trader has similar protection to a consumer but found it confusing. In this case, I don't have 'rights'? It's not credit. It's my 'rights' I'm trying to exercise.

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In fact if you look at clause 10 of the terms and conditions, Future Comms make it clear that your airtime contract is with O2.

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Yes it is, and is what I understood all along. So why must I be bound to FC's restrictive rules? 02 have confirmed again to me that they always give a 14 day 'cooling off' period for all business contracts, 24 month max contract and that they issue invoices directly to the customer. Each month, payment is taken from my a/c for the full agreed bill; 02 then issue a copy of that invoice to FC (to show I've paid) together with the commission as agreed. So, all FC are doing is receiving their dues.

 

02 do not canvass for new customers directly. Yes, they work with third parties.

 

Additionally, FC stated my contract was for 36 months; 02 have it on their records, from FC, that they signed me up to a 24 month contract. FC insist 02 is wrong and vice versa!

 

Next, I want to know how FC got my phone no in the first place, since I always opt out of 3rd party contacts. I notice on the contract, that box isn't ticked.....if I'd seen that before signing I would have ticked it. I'm also signed up to TPS!

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