Business

Campaign launched to stop business contracts ‘auto-rolling’

Britt Megahey, managing director at Barclay Communications
Britt Megahey, managing director at Barclay Communications

BELFAST-based Barclay Communications is launching a campaign in a bid to stop other telecommunications companies from automatically renewing landline contracts, which forces many businesses in Northern Ireland to overspend millions per year.

It comes despite regulatory bodies informing telecoms firms that they must notify clients of an impending renewal in advance and in a timely manner.

Barclay, which specialises in advanced communication tools, said a current lack of awareness in regulations is allowing telecoms firms to automatically renew businesses into an extended contract without warning or notice, for up to five years.

And it says the cost to the business sector in the north amounts to approximately £22.5million over the last five years.

Often concealed within the small print of contracts’ terms and conditions, businesses are required to give between 30 and 90 days’ notice to avoid their contract being extended.

Britt Megahey, founder and managing director of Barclay Communications, said the ‘Protect UK Businesses: Hang up on Auto-Rolling Contracts’ campaign will highlight the issue which many businesses may not be aware of, and he is encouraging businesses to sign a petition to ban the restrictive practice.

He said: “Auto-rolling is exploitative and a very real concern, and could be potentially costing businesses in Northern Ireland up to £5 million in overspend each year.

“Right now, clients feel there is no way to get out of this contract and no way to appeal the renewal, and as a result, there are a lot of unhappy customers.

“We are totally opposed to auto-rolling of fixed landline contracts, because it’s not in the interests of clients. Often these roll-overs can last for five years and in that period advancements in technology lead to improved pricing and more compelling solutions.

“We have experienced savings of over 50 per cent for many customers and discovered that the majority have not reviewed their rates in 10 years. Some companies weren't even aware that a number of the services they were paying for were not being used. This for me calls for a change.”

Businesses can sign the ‘Protect UK Businesses: Hang up on Auto-Rolling Contracts’ petition at https://www.barclaycomms.com/help-stop-auto-renewal/