The business telecoms industry has seen a worrying trend: predatory companies luring businesses with seemingly incredible deals, only for the customers to find themselves trapped in long-term, expensive lease agreements they weren’t aware of signing. Here’s a breakdown of how this happens, what these contracts typically include, and what you can do to protect yourself.
How Do These Scams Work?
Predatory telecom companies often present offers that sound almost too good to be true. They promise low monthly costs and cutting-edge solutions, conveniently glossing over the fine print. Coupled with aggressive sales tactics, business owners often feel pressured to sign contracts on the spot. Without careful review, these deals can quickly turn into financial nightmares.
What’s in the Fine Print?
The fine print in these contracts often contains two major traps:
- Lease Agreements Hidden in Plain Sight:
Despite assurances from salespeople, the contracts often include a lease agreement for the software licences & hardware. An undercover investigation by the BBC revealed that some salespeople outright deny the existence of a lease agreement, even when it’s clearly outlined in the terms. The lease adds unexpected costs, locking businesses into long-term payments for equipment they might not even own. You can read about the investigation here: ‘I feel sick about signing that phone contract’ – BBC News
- Unreasonably Long Terms and Auto-Renewals:
These contracts often span 5 to 7 years, with clauses such as short, 72-hour cancellation windows. Missing this deadline means the contract automatically renews for another 7 years, making it nearly impossible to exit without significant financial penalties.
Why Are These Companies Predatory?
The business model of these telecom providers prioritises profits over customer satisfaction. Long contract terms and minimal investment in service quality ensure steady revenue for them but leave businesses stuck with poor support and outdated solutions.
How to Avoid Falling Victim
To avoid being trapped in a bad deal:
- Seek a Second Opinion:
Never sign a contract on the spot. Some salespeople even carry portable printers to modify and finalise deals instantly. Take time to consult with other professionals or providers to verify the terms.
- Cross-Check Claims:
Always compare verbal promises with the written contract. This simple step can prevent costly misunderstandings.
- Read the Terms Carefully:
Ensure you understand the duration, cancellation policies and any fees associated with the deal. If something seems unclear, ask questions or seek professional advice.
What If You Think You’ve Been Scammed?
If you suspect you’re locked into an unfair contract, you’re not alone. While there’s no regulatory body overseeing these agreements, past cases, such as the 2011 BT scam, show that legal action can sometimes hold scammers accountable. For impartial advice, consider reaching out to experts like MF Telecom Services Ltd. They can review your contract and help you understand your options, with no pressure to buy their services.
