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Is it typically your initial contract renewed for another term without your consent?
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Is it typically your initial contract renewed for another term without your consent?

HannanHannan Member, Host Rep
edited November 2021 in General

Hi guys,

Something really bothering me. A company (I won't name them yet), I have rented more than 200 servers with them for 24 months contract (since 2017 or 2018).
Now after the contract is over they said oh no. You can't cancel any of your servers and you are locked in for another 24 months?!!!!
I said it was not in the document I signed with you and that is misleading. Now they said no it is on our T&C (Which is not linked to the contract at all) and that can be changed at any time.

My question is, is that a common practice?
I felt really they played me dirty. I have worked with multiple companies and I never had something like that. Now I have some old hardware with a 3 to 6% annual increase in the prices (after the initial contract) and they try to lock me in?

My account manager didn't let me add his responses on Skype anonymously here. I would have some more details shared with you otherwise, But initially, they said it is your problem. You had to go on our website and have read our 50 pages T&C which we can change at any time.

p.s. I am trying to fix this in peace.

Please advise?

Thanks

Comments

  • yoursunnyyoursunny Member, IPv6 Advocate

    When in doubt, sue.

  • I've heard of this happening a lot - especially on the MSP side of things with software and hardware vendors. It's not uncommon, but they really should have given you a heads up.

    Did you not receive a renewal, warning, or notification that your contract was about to renew? Not even an email?

    Thanked by 1Hannan
  • AllHost_RepAllHost_Rep Member, Patron Provider
    edited November 2021

    No, I wouldn't expect any service contract to just renew for the same period again without contractual agreement.

    Almost every long term contract I can think of switches to monthly billing at an increased monthly cost due to it now being out of contract.

    It just seems like a desperate clutch for revenue and most likely has no legal standing - though you'd need to read your initial contract and see if it makes any reference to end of term renewal or if it refers to the T&Cs.

    Is this a UK based company?

    Thanked by 1Hannan
  • @Hannan said:
    Hi guys,

    Something really bothering me. A company (I won't name them), I have rented more than 200 servers with them for 24 months contract (since 2017 or 2018).
    Now after the contract is over they said oh no. You can't cancel any of your servers and you are locked in for another 24 months?!!!!
    I said it was not in the document I signed with you and that is misleading. Now they said no it is on our T&C (Which is not linked to the contract at all) and that can be changed at any time.

    My question is, is that a common practice?
    I felt really they played me dirty. I have worked with multiple companies and I never had something like that. Now I have some old hardware with a 3 to 6% annual increase in the prices (after the initial contract) and they try to lock me in?

    My account manager didn't let me add his responses on Skype anonymously here. I would have some more details shared with you otherwise, But initially, they said it is your problem. You had to go on our website and have read our 50 pages T&C which we can change at any time.

    Please advise?

    Thanks

    When signing important contracts ( lot of money or important for any reason) please triple check everything.And have printed a copy of all the contract . It is simple if is there you must pay it. If not you just could speak with a lawyer and take proper legal decision about your concrete case. We are not lawyers so we could not give you any good advice.

    Hopefully you have a print copy from the 1st contract . If not you could always speak with a lawyer but ......if were my case i would get a printed copy of my contract so in the worst case scenario move to another company in 2 years or when the contract finishes. If not there is a "risk" to pay more money

  • HannanHannan Member, Host Rep

    @tjn said:
    I've heard of this happening a lot - especially on the MSP side of things with software and hardware vendors. It's not uncommon, but they really should have given you a heads up.

    Did you not receive a renewal, warning, or notification that your contract was about to renew? Not even an email?

    No nothing. That is amazing indeed. and my account manager said "you had to read our T and C and I could not go through a 10-page document with you word by word"

  • HannanHannan Member, Host Rep

    @AllHost_Ben said:
    No, I wouldn't expect any service contract to just renew for the same period again without contractual agreement.

    Almost every long term contract I can think of switches to monthly billing at an increased monthly cost due to it now being out of contract.

    It just seems like a desperate clutch for revenue and most likely has no legal standing - though you'd need to read your initial contract and see if it makes any reference to end of term renewal or if it refers to the T&Cs.

    Is this a UK based company?

    I am really pissed off with them, I may cancel all of my services (which I think all of them are over two years now) because of this act.
    They have a presence in the UK as well but they are a dutch company.

  • jackbjackb Member, Host Rep

    This is a fairly common term in the contract.

    The contract must specify. I think you've grounds to exit the contract if it doesn't.

  • HannanHannan Member, Host Rep

    @Chievo
    I have printed all of the contracts and trust me there was nothing like that in the contract. Nor mentioned at all, warned or anything.
    I have no intention to cancel any of their services right now but I feel I have played dirty and not like it.

    p.s. I have asked and provided a link to this thread to my Account Manager.

    Thanked by 1Chievo
  • Let me guess: is it a german company?
    It is very common here, that contracts who run for x months auto-renew until you cancel, and that the prolonged period is as long as the original period (24 months in your case). Oh, and that you have to cancel ahead of time. Often 2 or 4 weeks in advance.

  • @Hannan said:
    @Chievo
    I have printed all of the contracts and trust me there was nothing like that in the contract. Nor mentioned at all, warned or anything.
    I have no intention to cancel any of their services right now but I feel I have played dirty and not like it.

    p.s. I have asked and provided a link to this thread to my Account Manager.

    Then contact a good lawyer and explain your case and provide all the info. They could give you a proper advice in respect all the possible ways to solve the case ;)

  • @that_guy said: Let me guess: is it a german company?

    Just adding to the list, French companies. They both will send military air crafts after you for debt collection if you don't pay. And by default most of their contract are "auto-renewable".

  • AllHost_RepAllHost_Rep Member, Patron Provider

    I'm not sure you should be paying the same initial contract pricing for what would be at least 2-3 year old hardware too at this point so that's always worth considering.

  • risharderisharde Patron Provider, Veteran

    I would avoid 24 month contracts like a plague after reading this.

  • MrRadicMrRadic Member, Host Rep, Veteran

    The auto renewal would be listed in the contract you signed. When you sign a contract, make sure it specifically states that it goes month-to-month after it expires.

  • Check their site in webarchive.org. maybe there is old version of tos.
    See your lawyer anyway. If there is no info about TOS in contract probably you can leave them.

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