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Ben Jones
Ben Jones, UK Lawyer
Category: Law
Satisfied Customers: 50953
Experience:  Qualified Solicitor
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We are a small business, work hard to pay our way. We have

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We are a small business, work hard to pay our way.
We have processed our card payments through Transax, for several years.
At first, we signed a 48 month contract, which has run out.
They have not contacted us since, regarding a new contract.
Last week, I asked to leave. I was told that it would cost £1,800, because we entered
a new contract in March this year, for 4 years. At that time, I was not asked, I was told
anything about it, it was just automatic. Is this legal ?

Hello, my name is***** am a qualified lawyer and I will be assisting you with your question today.

Did the original contract say it would be a rolling one and automatically renew at the end of the initial 48 months?

Customer: replied 1 year ago.
I honestly do not know. I will have to go up to the office, to look in the file.
Can I contact you again on Monday ?

Yes of course thanks

Customer: replied 12 months ago.
Hello Ben,
Many thanks.
After reading through all the Transax documents, I have drafted the following, does it meet youir approval ?
Client Complaints Department,
Dear Sirs, Account No :-(###) ###-####With further reference to my emails,and your telephone reply, I wish to remind you, that the only contract
which has been signed by our Management, was our agreement for a fixed term of 48 months, and the
effective date was 4th March, 2013. Customer Copy no: 142993. It was also signed by your
Representative Andy Manfield.
You did not let me know when it ran out, and you did not ask if we wanted to renew it.
The contract did not say it was a rolling one, and automatically renew at the end of the initial 48 months,
therefore you have broken your agreement.
I have taken legal advice, and if you are not willing to cancel our account without charge, I will take the matter further.
Yours faithfully,
Is it O.K. to post ?
Kindest regards, Phyllis.
Customer: replied 12 months ago.
I have just added a bit more :-
The contract did not say it was a rolling one, and automatically renew at the end of the initial 48 months,
therefore, by tying us in to another 4 year contract, without our knowledge or approval, you have broken your agreement.

Hi there, assuming he contract did not state it was a rolling one and automatically renewable at the end of the initial term, they cannot tie you into a new term without advising you this would happen and seeking you acknowledgement to it. Therefore, if they never advised you that this was a rolling contract and told you that they are renewing it and seek your consent, then this is unlikely to be a fair or legally extended contract and you can indeed claim you are not bound by it. They can claim that you are but you simply do not have to pay the anything in relation to it and it is up to them to pursue you for that - I doubt they will go as far as court and even if they did, it would be extremely difficult for them to show they have a valid case.

So the letter you have is fine and will hopefully tell them they have no case here.

I trust this has answered your query. Please take a second to leave a positive rating by selecting 3, 4 or 5 stars above - this is an important part of our process and recognises the time I have spent assisting you. If you still need me to clarify anything else, please reply on here and I will assist as best as I can. Thank you

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Customer: replied 12 months ago.
Hello Ben,
Many thanks for your prompt reply.
I very much appreciate your help and advice.
Kindest regards, Phyllis.

You are most welcome and all the best