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JGM
JGM, Solicitor
Category: Law
Satisfied Customers: 11551
Experience:  30 years as a practising solicitor.
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Hello, As a sole trader am I classed as an individual and

Resolved Question:

Hello,
As a sole trader am I classed as an individual and covered under the consumer credit act?
I signed a contract for a creditcard terminal and pay a monthly line rental. I had been with them for 4 years and wanted to cancel but the provider insists they are within their rights to demand a years notice if I want to cancel the agreement and if not recieved they can extend the contract for a further four years.
Regards,
Alison
Submitted: 2 years ago.
Category: Law
Expert:  UKSolicitorJA replied 2 years ago.
Hello,

Did you sign a Membership Agreement or a Leasing Agreement with the provider?
Customer: replied 2 years ago.

Yes I signed a rental agreement through a third party. Unfortunately he filled in the duration after I had signed the agreement while he was supposedly just checking everything was correct. He also didn't tell me it was a years notice to cancel.

Expert:  Ash replied 2 years ago.
Hello my name is ***** ***** I will help you with this.
For now please let me know whether there is an annual renewal or notice period in your agreement?
Customer: replied 2 years ago.

In the terms and conditions it says that if I don't give a years notice to cancel three years into the rental then after 4 years I will be automatically rolled onto a further 4 year rental agreement.

I was only made aware of this when I tried to give notice after almost 4 years.

Expert:  Ash replied 2 years ago.
Ok. Did you not read the terms before you signed them?
I assume because it was for a terminal that this was for business purposes?
Customer: replied 2 years ago.

I didn't read the terms no because he said he'd tell me the important bits. There were numerous terms in very small font so I took him at his word.

Yes it was for business purposes as I am a sole trader.

Expert:  Ash replied 2 years ago.
Ok. If you are in business why didn't you read it? When did you become aware of this term?
Customer: replied 2 years ago.

I didn't read it because there were a lot of them and he convinced me he'd told me the important points. This was my first venture into business and I assumed the law protected me from anything unfair especially since it says on the agreement that it's covered by the consumer credit act.

As I said earlier I became aware of the terms when I tried to cancel the agreement after almost 4 years. They continued to take payments after I had cancelled and when I queried it they told me of the terms.

Expert:  Ash replied 2 years ago.
You became aware 4 years after?
If you didn't read at the point of contract why didn't you look at them for four years?
Customer: replied 2 years ago.
Relist: Other.
My question has not been answered and I feel like I am going around in circles. I merely need to know if as a sole trader I am covered by the consumer credit act and if so does this mean that I am covered by the section that states I can cancel after 18 months and give noticed based on the frequency of my payment which was every 28 days. Thanks.
Expert:  JGM replied 2 years ago.
Thank you for your question.
You are covered as long as the Agreement isn't for more than £25000 of credit.
Regarding the rep saying that he would tell you about the important bits of the agreement you may be able to rely on the "unfair relationship" provisions of the Act. Read sections 140A and 140B.
I hope this helps.
Please leave a positive response so that I am credited for my time.
JGM, Solicitor
Category: Law
Satisfied Customers: 11551
Experience: 30 years as a practising solicitor.
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