Merchants Rentals Plc

[julesmitch4]

Re: Merchants Rentals Plc

We're aware of this. Let me ask Andrew, solicitor, to pop in and see what he says.


Sit tight. Try not to worry.

Your thread is here --> http://forums.all-about-debt.co.uk/s...TALS-CONTRACTS

Thank you all help much appreciated

[ATW]

Re: Merchants Rentals Plc

It sounds similar to the gym contracts that were found to be unfair. They were business to consumer though whereas here its business to business. There is less protection for businesses than there is for consumers. Was the contract in your name or for a limited company.

[julesmitch4]

Re: Merchants Rentals Plc

It sounds similar to the gym contracts that were found to be unfair. They were business to consumer though whereas here its business to business. There is less protection for businesses than there is for consumers. Was the contract in your name or for a limited company.

Hi the contract is in my name as a sole trader. It seems an unfair clause to make someone pay 12 months cancellation fee. Do you think I should just offer them a monthly payment to get them off my back or should I let them take me to court and put in a defend to the claim?

[ATW]

Re: Merchants Rentals Plc

It is worth a go with a trial. Its not an unreasonable argument that paying for 12 months is unfair. Especially as its for a relatively cheap product which is easy for them to collect from you at low cost. It seems to me that there is an imbalance in their favor caused by the length of the notice period for the cancellation. On the other hand some judges will say you should read the contract and shop around if you don't like it.
Its small claims track so each side has to pay its own legal fees whether they win or lose (unless they are trying to also claim costs under the contract). You can take it to trial and then make an offer to settle at any point before the day of trial. The more you look like you are going to fight and costs them time and money the more likely they are to listen to an offer from you imho. I doubt that its cost effective for them to pursue a contested hearing.

[julesmitch4]

Re: Merchants Rentals Plc

Thank you for the advice I am just waiting to hear from them for their next move I have offered £5.00 a month but they refuse this and want £50 a month! I will take it as far as I can and go for Dispute when it get to going to court.

[Never-In-Doubt]

Re: Merchants Rentals Plc

Let's not get into protracted arguments with them over the offer. Do you have their terms handy, can I see them please as I think we might be able to push a reply out utilising UTCCR 1999 (unfair terms).

[julesmitch4]

Re: Merchants Rentals Plc

Is this ok or can I email them to you????

[carol01]

Re: Merchants Rentals Plc

Thank you for the advice I am just waiting to hear from them for their next move I have offered £5.00 a month but they refuse this and want £50 a month! I will take it as far as I can and go for Dispute when it get to going to court.

can i ask did a rep come to you to sign the paper work? did you sign it the day they came in to explain how its works and when they took your bank details, or did he come back just for you to sign the forms? and was he in a rush?

[carol01]

Re: Merchants Rentals Plc

Let's not get into protracted arguments with them over the offer. Do you have their terms handy, can I see them please as I think we might be able to push a reply out utilising UTCCR 1999 (unfair terms).

they are the exact same terms i sent to you niddy all one sided

[yorkshirepud]

Re: Merchants Rentals Plc

Just thought I would jump in here as I am in a bit of a argument with Merchant Rentals and Handepay.

I signed up with Handepay on 14/4/2011 and was rushed through the process not fully understanding the implications of Merchant rentals been involved and the dreaded 12 month cancellation notice. I was told by the Handepay representative that because I was self employed, as it was a hire agreement, even though it was a 48 month contract I was well within my rights to cancel after 18 months because of been self employed. Obviously this is not the case as Merchant rentals have me with one of there get out clauses.

I changed merchants this year and attempted to cancel with Handepay. I Managed to inform Handepay and then had to cancel Streamline also but was then hit with a letter from merchant rentals asking for around £390 because they wanted the remaining months. I tried quoting the CCA 1974 and said I was told by handepay that as I was self employed, I could just do 18 months but was simply told "that does not apply to us". No one at merchant rentals would explain to me why it did not apply to them and I eventually got a letter telling me to pay or face a default notice and court action.

I have been in touch the other day and today exchanging emails with a rude member of their credit control team and this is what was said (apologies for the amount of text):

Merchant Rentals first reply:

Good Morning,

Thank you for your email dated 28^th February 2014.

We reiterate, you have signed a minimum 48 month agreement and are bound by the terms of our Contract until said contract terminates on 26.05.2015.

Your account is currently in arrears by £64.77 and must be brought up to date immediately.

If you wish to terminate the agreement with immediate effect you will be required to pay a settlement of £390.85 which is valid until 11.03.2014 and return our terminal to the following address via Recorded delivery post;

UK Paper Rolls
Unit 15
34 John Brannon Way
Darrows Estate
Belshil
ML4 3HD

If you are unsure of your options please contact me on 01942 407 997 quoting <removed>.

Regards

<removed>
Credit Control

Me:

Hi <removed>.

Thank you for your reply.

I understand that it was a 48 month contract but I can't seem to get a straight answer as to why I signed a contract which I have checked and at the top states it is between myself and merchant rentals plc and is regulated by the consumer credit act 1974. It also states it is a hire agreement for a hypercom terminal. I was informed by the rep who signed us up that because I am self employed then due to to consumer credit act for a hire agreement I can freely cancel within 18 months as I signed after feb 2011. Whenever I mention this, no one from merchant rentals can say why I am not covered by the consumer credit act for a hire agreement and give me the valid reason why this does not apply to your company. All I get is the same reply which is "this does not apply to us".

If you could provide me with this information then I would be very grateful.

Kind regards

Lee

Merchant Rentals:

Lee,

We have attached herewith a letter explaining why section 101 of the Consumer Credit ACT 1974 does not apply to your particular agreement, I have sent the hard copy via post.

If you have any further question please contact me.

We trust we will receive payment bringing your account up to date by return.


<removed>
credit control

Here is the letter they sent me (with some personal info blanked):

Date: 03.03.2014

Dear Sirs

Hire Agreement Number: <removed>

We refer to your enquiry regarding a hirer having a right to terminate a hire agreement, such as the Agreement which we identify above, provided by Section 101 Consumer Credit Act 1974.
It is true that, after 18 months from the date of the making of the hire agreement, it can be terminated by the hirer by giving notice but only if one or more of the statutory exceptions do not apply to the relevant agreement (see Section 101(7) Consumer Credit Act 1974).

The statutory exceptions to Section 101 do apply if ;
(i) the hire payments in total exceed £1,500.00 in any year; or
(ii) the goods are hired to you for business purposes and were selected by you and acquired by us for the purpose of the Agreement from any person other than an associate of ours; or
(iii) if you intend to sub hire the goods.

In the case of our Agreement with you, it falls within the exception shown at (ii) above, because you are hiring the goods for your business and following your selection we purchased those goods from a third party distributor/manufacturer which is not an associate or ours.

Consequently, you have no right to terminate our Agreement before the end of the Minimum Period of Hire and for the reasons which we have endeavoured to explain.

Please now confirm that you understand your position and agree with what we have said above.

Yours faithfully

Merchant Rentals Limited

My reply as I may be clutching at straws here:

Dear <removed>

Thank you for attaching the clause for me, it is appreciated as I can now understand more of what I keep been told. The only part which does my make sense is where it says the terminal was selected by the hirer as with handepay we had no choice with terminal selection, we was shown a picture of it and told this is what handepay use and will send to you. We had no options or choice in this decision of terminal and it was selected by handepay (<handepay reps name removed>), not me. I was not told it was going to be purchased by another company in order to hire it, I was made to believe that these terminals were on hand and just hired. I don't know how that affects me as it is all a bit confusing as handepay seem to have really had me over a barrel here.

Regards

Lee

Merchant Rentals reply:

Lee,

We have provided you with the information you requested if you wish to take Legal advise then please do so.

We will however, continue with our arrears process in the meantime which will result in a claim being issued through the County Court.

Yours Sincerely


<removed>
Credit Control.

Any advice would be appreciated and apologies for the large post.

Lee

[julesmitch4]

Re: Merchants Rentals Plc

A rep came into the salon and took all my details I signed the contract on the same day; he explained about the 36 minimum rental but gave no indication or pointed out the 12 moths termination clause. He took everything away with him and it was posted back to me Merchant rentals credit control department say although I signed the contract on 10th September 2010 payments were deferred ; words from merchant rentals: :The agreement was imported o 21.10.10 with the first rental being due, after a 3 month deferment on 01.01.11 (none of this was explained to me at the time and the salesman left in a hurry )

I posted a negative feedback on Trustpilot which was removed (merchant rentals knew of the review and got very vindictive towards me and I was then passed onto the legal department. If you go to Trustpilot search Handepay they have loads of excellent reviews if these are genuine reviews poor them when they try and terminate the contract
.

[Never-In-Doubt]

Re: Merchants Rentals Plc

Leave this with us till the weekend as we'll try and come up with a suitable blanket response for you. Thing is would any of you really want to argue this in court and be a guinea pig? I suspect not so where do we draw the line? It's pointless fighting out of principle to back off if they issue a claim. As it's under £10k (small claims track) you'll not have costs so it might be worth taking them on and seeing how a judge deals with the unfair contract argument......

Carol - is yours sorted now or still arguing?

[Never-In-Doubt]

Re: Merchants Rentals Plc

Lee, I'd not be arguing so much the point of cca early termination; the points we'd look to argue are

1. Unfair Relationship
2. Point of Sale (was agent authorised to give financial advice as this falls under cca)
3. Cancellation rights
4. UTCCR 1999
5. Agents method of sale & forceful approach

they're the arguments I'd be using; at first glance but as I say I'll sort an argument for you at the weekend as I'm a bit busy just now.

[Never-In-Doubt]

Re: Merchants Rentals Plc

Is this ok or can I email them to you????

could you email me a copy please

webmaster@all-about-debt.co.uk

[julesmitch4]

Re: Merchants Rentals Plc

I am not good with words but if I was helped and the words put in my mouth I would be able to front it in court (I think) x