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The 7 year Phone System Lease Scam

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The 7 year Phone System Lease Scam

John Richardson by John Richardson
16/12/2024
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Do you read the small print?

Annual maintenance charges, contracts longer than promised, ‘get out’ clause charges, possible third-party leasing. It has recently come to light that some business phone operators have been including numerous hidden extras in their contracts. Unfortunately, for businesses, there is no cooling off period, unlike for consumers. Therefore, once you sign a contract, you’re stuck with it. And you’re not protected by Ofcom either.  A recent investigation by the BBC details some of the tactics used by these scammers: ‘I feel sick about signing that phone contract’ – BBC News

Being told you’re locked into a seven-year contract that you weren’t aware of is a surprising reality for many businesses.

An overly long and complicated contract can be overwhelming and it’s easy to skim through it, especially if you have a pushy sales person hovering over you encouraging you to sign. We’ve heard of examples of businesses being told they were signing a contract for five years that turned out to be longer upon examination of the contract, with extra costs being thrown in year upon year. It then cost them thousands to get out of the contract (tens of thousands in some cases).

Business owners wear many hats and have numerous responsibilities to take care of. Communications is often a priority, with the need to secure a phone contract paramount for employee-to-employee liaison and consumer contact being high on the list. Being responsible for choosing the right contract shouldn’t be subject to immoral scams from companies that recognise these needs and take advantage of that.

Don’t sign under pressure.

What to be aware of.

  • Overly pushy sales people putting pressure on you to sign a contract without giving you time to consider the contract.
  • Making sure that what the salespeople promise is replicated in the contract you receive.
  • Checking there are no limitations with the handsets that affect what is promised in the contract.
  • The value of the hardware and services you receive – often you can end up paying way more than what it is worth.
  • Checking you are getting what you need for your business and nothing more. Business communications is not a ‘one size fits all’ scenario. Don’t pay for what you do not need.
  • Charges being added to your account without your permission.

However pushy a sales person is, you reserve the right to take your time to consider a contract. The small print can be overwhelming, and in these scamming cases, it is likely designed as such. Your phone system and business communications needs to work for you as a company. An off-the-shelf contract is not necessarily the best fit for all and a good business IT and communications provider should know and respect this. In addition, a provider should offer support and maintenance that is ongoing throughout your contract.

At MF Telecom Services, we’re here to help. We’d be happy to go through your contract for you and provide an honest review. Please contact us to discuss any concerns you may have regarding your business phone contracts. We’ve been providing business communications for over twenty years and have a wealth of experience and expertise in the industry.

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