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Alex J.
Alex J., Litigator
Category: UK Law
Satisfied Customers: 3609
Experience:  LLB, LPC, DELF
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We signed a business contract with Glenigan in February 2014

Customer Question

Hi Michael
We signed a business contract with Glenigan in February 2014 for 12 months for online leads.
The payment terms were 10months but in their terms and conditions it says the contract will auto renew for a further year unless I give them 90days notice.
They sent an email in August saying that the contract would auto renew if I didn't cancel.
I did not see this email it is only last week they tried to take a direct debit for next years contract starting in Feb 2016.
I cancelled the debit and informed them I did not require their services next year.
They are saying I am locked into their contract now and must pay the £2000 for 2016 services which I have not yet had and do not want.
they are already treating your action is there anything I can do ?
Submitted: 1 year ago.
Category: UK Law
Expert:  Alex J. replied 1 year ago.

Hi, Thank you for your question and welcome. My name is ***** ***** I will assist you. Has the company commenced county court proceedings against you? Kind regards

AJ

Customer: replied 1 year ago.
Hi AlexNo they have notSee the response below I got two days ago to me emailing to cancel the contract
I Hope you are well. I have tried calling but unfortunately you were unavailable.
The contract you signed for your Glenigan service states in two sections the auto renewal terms, which can be cancelled providing we receive notification prior to the last 90 days of your subscription. As part of our service we contact customers prior to this date to enable any decisions to be made in due time, we sent an email with important information about your subscription in August which we received a delivery response for, please see copies attached.
We can accept cancellation of the subscription for the following year (2017), for which you can send an email requesting cancellation of your subscription, preventing automatic renewal going forward.
We are here to help assist you with your subscription over the next 12 months. If you require any further training or help using the website please feel free to contact me.
Expert:  Alex J. replied 1 year ago.

Hi, Thank you. ***** just ask - why did you not see the email? Do you think they did not actually send it?

Customer: replied 1 year ago.
I have two email addresses one which was used on the initial set up and amain email address.
All the updates of Glenigan information get sent to***@******.***
The email address used for setting up the account stems from my original online enquiry which was***@******.*** . I use this account to register for things generally on the web as you get a lot of spam and do not want my main box to be full of junk. When I was using the actual glenigan system it was set up to send messages to***@******.***.
Hence I never saw the renewal notice as it did not come to my main email account just as I don't read a lot of the spam email from elsewhere.
Expert:  Alex J. replied 1 year ago.

Hi, Thank you. I would write back to them as follows:

(i) Say you have no more need for their services and will not be paying for them any further;

(ii) say that you did not receive the notice they sent, as they clearly did not send you the notice to the contact address you have corresponding through during your relationship;

(iii) Say that you believe they are doing nothing more than trying to penalise you for cancelling the contract and the concept of an automatic renewal is simply an unfair term. Say you believe no court would enforce this as it is nothing more than a contractual penalty.

I would then consider if you want to try negotiate and offer them a reduce payment to make this go away say £250 in respect of their admin charges. I would avoid letting this go to court if possible because you will waste further time and money that you will not recover. If you can settle with them I would push for this.

Have they threatened court proceedings?

Customer: replied 1 year ago.
No the account department have said it will be passed to credit control if I refuse to pay the premiums for next year.
Not only do they want to insist I pay next year they want to start collecting the premiums two months before the first year is complete which ends February 2016.
All payments for the first year have been paid as they collected the monthly premiums over 10months with the first payment in advance.
Expert:  Alex J. replied 1 year ago.

Hi, Thank you. I think you have grounds to contest the validity of the clause because ultimately they are penalising you by demanding you pay for a service you will not use. I would try and least negotiate a settlement for them on the basis that you will not use the service.