Billing policy changed in website after signing up. Doesn't feel right..

Gattagai

Hello all,

Apologies if I am posting in the wrong forum, but just wanted a little help.

A couple of years ago I signed up for a website which provides online shops. The billing structure was put forward in the terms and conditions as being a percentage of what the shop was turning over. As I wasn't yet off the ground, and didn't even have a product to sell, I took the first step and signed up thinking there's nothing to loose. ie. If i'm not selling anything then I won't be paying anything.

Well life took over and I never managed to put aside any time to make my online shop. I didn't forget about it, but didn't use it - just had the account sitting there empty.

I discovered that shortly after signing up, they changed their billing structure and shifted from charging a percentage, to charging a monthly fee.

They sent out a notice in the style of a chatty newsletter which I didn't see - therefore the first I discovered was through seeing my direct debit payments had been coming out of my account.

The company are being very polite and helpful. But my hunch is that it's not on that they change their payment structure like that. After all in the t&cs they sent me it says nothing about reserving the right to change how they charge (it states that it is done as a %) if they had i would have been more concerned in keeping an eye on the account.

Is what they have done correct?
Am I reasonable to have requested my money back!!

Thank you for reading this through

knightstyle

If you still have the original T&Cs and they cannot prove you received the new ones you should get a full refund. So ask them for proof that you got the new T&Cs and go from there.

Slowhand

knightstyle wrote: »

If you still have the original T&Cs and they cannot prove you received the new ones you should get a full refund. So ask them for proof that you got the new T&Cs and go from there.

The OP said they got the new T&C's.

agrinnall

Slowhand wrote: »

The OP said they got the new T&C's.

I disagree, the OP has probably seen the new T&Cs, but hasn't said anywhere that the website ever sent them.

Judith_W

In T&Cs I've seen on other websites, it states that the T&Cs can be amended and you should refer to the website for the latest version. If they sent an update even in the form of 'a chatty newsletter' (when do companies make a big deal about a negative change to business?), I reckon this is legal.

Also, the burden is usually on the customer to ensure their contact details remain up to date, so if the email bounced for example, that wouldn't matter

unholyangel

Have a look on google for "unfair contract terms guidance". Its an OFT pdf.

It should apply as it sounds like you have basically accepted their "standard business terms". So you should find quite a few sections that may apply to your contract with them.

There is also the Direct Debit guarantee. See below:

The direct debit guarantee applies to all banks and building societies taking part in the direct debit scheme. It says that:

if there is a change in the amount to be paid or the payment date, the person receiving the payment (the originator) must notify the customer in advance.
if the originator or the bank/building society makes an error, the customer is guaranteed a full and immediate refund of the amount paid.
customers can cancel a direct debit at any time by writing to their bank or building society.

The above may be on shaky ground since they will essentially say they notified you in the "newsletter" but I think most people would disregard newsletters. Normally companies send an email with something like "Important changes to your services".

10.2 If a term could be used to force the consumer to accept increased costs or
penalties, new requirements, or reduced benefits, it is likely to be
considered unfair whether or not it is meant to be used in that way. A
variation clause can upset the legal balance of the contract even though it
was intended solely to facilitate minor adjustments, if its wording means it
could be used to impose more substantial changes. This applies to terms
giving the supplier the right to make corrections to contracts at its
discretion and without liability.

However, I think if anyone signed up to a PAYG service, they would definitely NOT expect to be put on a pay monthly service without having expressly agreed to the service. Before there was no obligation to pay for services you did not use. Now there is. Anything major like that should require express agreement imo. To not require agreement has huge potential for unfairness.

arcon5

This is quite a significant change to the contract. I'm betting such material changes with such menial attempts of notifying you would be classed as an 'unfair term'.

Hiding this in a newsletter is not really taking reasonable steps to notify you of the changes.

I would say you are entitled to a refund.