Caught by the renewal clause- webhosting

chiplover · 14 August 2009 at 9:30PM

Q-WHY Does paying for a 12-month service legally automatically bind you to a renewal contract- even if you haven’t literally signed a contract for renewal?

Hi, here's my problem:

In August 2008 I gave my details to a web-hosting companyand paid by credit card for one year’s web hosting and domain name. In July 2009 I received an email to say £10 had been debited from my credit card. I was not notified in advance that the money was going to be taken.

I was worried that the next month they would renew £113.72 without even telling me, so I sent their billing department an email to say that I did not authorise any further monies to be taken from the credit card. Then I went on my honeymoon…

I returned to find an automated email stating that it ‘hadn’t been read’ (because I hadn’t included my account pin) and to contact customer services. I also found of course, £113.72 removed from my credit card.

And of course they don’t do refunds. It’s in the policy. I’ve contacted my credit card but there was no joy- as they simply told Tesco Clubcard that I hadn’t closed the account and they were therefore legally entitled to take the money.

I requested to close the account 11 months early but they told me that (unlike insurance companies) I would not be refunded the unused part of the fee if I did.

Is this ethical practice?? In the USA McAfee and Symantec have been fined for unethical use of renewal clauses. My hosting co. are regulated by OFCOM (apparently) but shouldn’t we be questioning the tactics of these companies?

Isn’t this like private parking companies (by parking here you are bound by our terms and conditions and agree to pay a £200 release fee…)? Same as me: (By filling in your details you agree to be bound by our terms and conditions…).

I SIGNED NOTHING…

Please help
Chiplover

P.S. If I left my dog in boarding kennels and paid for that and they said ‘by paying for this service you are bound by our terms and conditions’ one of which was to give my dog to the kennels after one year to be used as sausage meat, would I have to do that???

Woby_Tide · 14 August 2009 at 10:51PM

You signed nothing but you gave them all your details and your bank card numbers and agreed to their T&Cs by clicking a button I imagine? Did you read the T&Cs that you clicked a button to accept or decide that there wouldn't be anything overly onerous in them and clicked thebutton anyway?

mrJ_5 · 15 August 2009 at 8:49AM

web hosting is like a subscription service, or one of those extended guarentee things - you need to cancel it fully otherwise they will debit your account, hosting companies have to pay for servers, bandwidth, etc. They may not offer refunds on annual payments, but then you get a cheaper price over those 12 months - which is what you agree in the terms.