Rent smart

edited 30 November -1 at 1:00AM in Reclaiming Mortgage Fees, Council Tax, etc
3 replies 3.4K views
ScrumpymonkeyScrumpymonkey Forumite
6 Posts
Hi everyone,

I've had a look through the forum for information on rent smart and I'm thinking I probably have got no recourse on this.

2 years ago, I took out a rentsmart agreement with PC World for my business. Things were going well and I felt it was time to upgrade and invest in some more IT kit.

I went into PC World to look at a HP type agreement and walked out with a Rentsmart contract. As I have never had much in the way of finance I was little naive to what finance products were available. I looked through the contract and as there is nothing in there about early termination by me, I asked the sales person in the store what would happen if I wanted to terminate the contract. I was told there would be an early termination charge and that I would then have to pay for the value of the equipment at the time of cancellation.

I know I should have realised that this wasn't a HP agreement when he said that but at no point did he say that I would have to pay all the outstanding payments for the term of the lease. The way he described it made it sound as if it was a small termination fee.

The reason I've put this post up is that the business has struggled for the last 18 months and I am currently in a position where I am trying to cut costs without completely closing it down. I still really need the IT kit to keep operating but I have now realised that to terminate the contract early, I will have to pay the remaining 23 payments plus Rentsmart's estimate of the current value of the equipment.

Is there anyway I can get out of this or am I up the proverbial creek without a paddle? Any advice would be most appreciated.

Replies

  • relegalrelegal Forumite
    3 Posts
    Hi Scrumpymonkie,

    I have just reported Rentsmart/PC World to Trading Standards for what I would consider to be unscrupulous practices. Renting a laptop worth £425 over 48 months plus the insurance which is unnecessary ends up costing nearly £1,700!!! And even then you don't own the equipment and have to purchase it for "a fair market value". This is supposed to be a business to business deal only, so you have no consumer rights and it is not regulated, but PC World are siging up students and the retired. Also even though it is supposed to be a 'business' rental, you are actually signing up personally, so you will be personally liable for the debt.

    For other people reading this, I would strongly advise not to sign up for rentsmart it will cost you dearly!

    I have requested a copy of the agreement and will scrutinise it to see what leeway there is.
  • StoffyStoffy Forumite
    77 Posts
    Hi,

    Heres another thread which might be helpful

    http://forums.moneysavingexpert.com/showthread.php?t=2271093&highlight=rentsmart

    And another one:

    http://mobile.pcadvisor.co.uk/forums/2/consumerwatch/294838/pc-world-and-rent-smart/

    Although they may not be applicable in your circumstances there is a lot of good advice on both threads.

    I'm currently trying to get out of this agreement as I never have had a business, the PC World advisor lied to rentsmart telling them I have. No business = No business contract = blatent mis-selling!

    I am currently awaiting a response from a letter I have sent to PC World HQ. An unfavourable response from them will see a huge media onslaught against PC world in particular for breach of contract and also against the inability of rentsmart to run any checks whatsoever that the business I supposedly have actually doesn't exist. If rentsmart would have just done a minor search for the business I supposedly had they would have found nothing registered, therefore couldn't have made the sale - ignorance is bliss in this case, although they are conning everyone!

    There are loads of complaints about PC world & rentsmart. I have a lot of evidence which supports the fact that PC world advisors are purposely lying to customers to get them to sign up for this horrendous contract.

    Also, I have spoken to Trading Standards in Herts after hearing about them investigating PC World (as this is where their HQ is based). They are currently running a "massive operation" and are thoroughly investigating every claim. I would advise you speak to them too.
  • saj_chowsaj_chow Forumite
    9 Posts
    Seventh Anniversary First Post Combo Breaker
    hi everyone,
    i have taken out two laptops from pc world and supposed to pay £15 for one and £35 for other. which should be 50 pounds in total but the direct debit of £57 pounds is being taken from my account. i was wondering if i was being charged ppi on the sale. can anyone shed some light on this please. it would be of great help. thanks in advance..
    saj
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