Cancelling Contracts: The Worst Business Practices That Can Bring a Business Down

You think the Brexit contract is difficult to get out of; two years negotiations. Well for regular commercial companies, here are a few others. Just like the mis-selling of payment protection insurance, these terms can take a company down.

My top gripes:

1. 30 day notice: Why? So they can rip you off for 30 days! Free money. No good reason.
2. Must call to cancel: What a waste of time. They won't do it online. So many good companies do allow you.
3. Top Prize for worst example ever: Teamviewer: These guys need a 365 day to 29 day notice, else they will bill you not one month, but a whole year. My company is now suing them for breach of EU Directives on Unfair Terms in Contracts (something as a barrister I've worked on).

I've written to them to explain, they potentially have a financial blackhole for mis-selling due to their void contact terms. This is something a CFO needs to worry about let alone the legal team. And here is why - as I wrote to their customer service team.

I think you need to escalate this to a more senior person or your CEO, Oliver Steil or the CFO Stefan Gaiser, given the financial implication for all other historic auto-renew clients.

Firstly, without prejudice to my claim for cancellation, yes I do want to cancel the auto-renewals and cancel forthwith and ensure I never pay again in the future. I hope that is clear.

Secondly, your EULA breaches EU regulations on Unfair Terms in Contracts. Specifically, your cancellation notice breaches the regulations, and so those terms in your EULA are void:

1.  The cancellation is not clear ‘not less than 28 days’ is not in plain English
2. The cancellation period of over 28 days in advance is unreasonably lengthy – specifically the EU holds that “Terms whereby a consumer has to notify an intention to end such contracts but where the deadline for doing so is unreasonably early.”
3. The cancellation notice period is unreasonable in relation to the payment period of one year. It would be reasonable if a one month notice was needed, but this needs more than one month notice, otherwise a whole year is payable.
4. There are no cost implications whatsoever of you having such a period, other than to cheat users. There are no rational business reasons for such an auto-renewal period other than to cheat consumers and so is manifestly unfair.
5. The cancellation is one-sided in favour of your company

 I refer you to the following Directives of the EU:

Directive 84/450/EEC Directive 85/577/EEC Directive 87/102/EEC Directive 90/314/EEC Directive 93/13/EEC Directive 94/47/EC Directive 97/7/EC Directive 97/55/CEE Directive 98/6/EC Directive 1999/44/EC Directive 2005/29/EC

 Consequently, whilst I am willing to pay one month’s notice, I will if you do not accept this offer, refer this matter forthwith to:

1.  Paypal
2. Office of Fair Trading, Office of Fair Trading Address: Fleetbank House, 2-6 Salisbury Square, London, EC4Y 8JX Tel: +44 845 722 4499 E-mail: [email protected] Website: https://www.oft.gov.uk
3. National Consumer Federation (NCF) Address: 24 Hurst House, Penton Rise, London WC1X 9ED E-mail: [email protected] Website: https://www.ncf.info/
4. Bundesministerium der Justiz und für Verbraucherschutz- Federal Ministry of Justice and Consumer Protection Minister: Heiko Maas Address: Mohrenstrasse 37, DE-10117 Berlin Tel: +49 (0)30 18 580 0 Fax: +49 (0)30 18 580 9525 E-mail: [email protected] Website: www.bmjv.bund.de

Failing the above, I will file a suit in the County Court to seek compensation. Moreover, I will ensure that positive findings from any of these bodies in my favour, set a precedent and are well publicised to users of your product in the same situation, and especially those historically who will be owed such sums which were charged unlawfully to them and they are recompensed. It is important your shareholders, and accountants make provision in your accounts for such dubious previous payments and substantial compensation to those on auto-renewal.