The campaign sets out to change rules that allow telecom firms to automatically renew businesses’ contract
Belfast-based Barclay Communications has urged Ofcom to change rules applying to telco firms being automatically allowed to extend landline contracts.
The company has launched a campaign as part of its challenge to ensure UK businesses don’t overspend by tens of millions of pounds each year.
Its campaign ‘Protect UK Businesses: Hang up on Auto-Rolling Contract’ launched last month and sets out to stop ‘unethical’ auto-rolling contracts.
Barclay Comms cites that a lack of awareness within the business community is being exploited by telco firms to automatically roll on an extended contract without notice, for up to five years.
Barclay Comms founder and MD Britt Megahey is behind the campaign and is encouraging businesses to sign a petition to ban the practice.
In a statement Megahey said: “Auto-rolling is exploitative and a very real concern. Within the small print of the contract the client must give anything from 30 to 90 days-notice if they want to end, alter or review their contract arrangements.
“If the customer is unaware of the procedures and fails to give such notice, they are automatically rolled into an extended contract, which could be for another 60 months.
“Right now, clients feel there is no way to get out of this contract and no way to appeal the extension. It’s a UK wide problem.”
According to Megahey, some of Barclay Comms customers have been able to save 50 per cent, however the majority of its customers have not renewed their rates in over a decade.
Barclay Comms supplies mobile, landline and software services to over 100,000 businesses across the UK and Ireland.
Megahey says that all information will be presented to Ofcom, as part of a bid to change these regulations.