Consumer rights: when companies offer services at a cheaper price than contract renewal

Forums › Off topic › Consumer rights: when companies offer services at a cheaper price than contract renewal

DamageInc

555 posts

Ultimate Geek
+1 received by user: 73

Lifetime subscriber

#198098 26-Jun-2016 19:15

Hi all, hoping there are some consumer rights experts viewing.

Mid April we received a letter in the mail saying our rubbish collection contract is up for renewal expiring 25/6/16. Rang around the competitors and the company we are with are in fact still the cheapest - $355 for 12 months.

Decided to pay it on Friday 24th June. That same day we happen to be reading the local paper where we see an advertisement, same company same service but $189 for 12 months.

Sent the company an email asking for the difference as a refund. Reply was no but were happy to offer an extra 2 months on to our contract.

Simple question - do we have any rights?

Thanks in advance for any feedback.

Pop! OS

gzt

18679 posts

Uber Geek
+1 received by user: 7809

Lifetime subscriber

#1580656 26-Jun-2016 19:18

What are the cancellation terms? If you have not used the service.

mdf

3566 posts

Uber Geek
+1 received by user: 1519

Trusted

#1580660 26-Jun-2016 19:25

Short answer: you've probably got no rights.

The contract you've signed up to might have a clause allowing you to terminate, allowing you to take up the new offer, but short of that, it's a binding contract. The new(ish) unfair contract terms provisions in the Fair Trading Act have a specific carve out (i.e. do not apply) to the upfront purchase price.

MikeB4

MikeB4
18775 posts

Uber Geek
+1 received by user: 12765

ID Verified

Trusted

Subscriber

#1580661 26-Jun-2016 19:25

Have a chat with the Commerce Commission.

Here is a crazy notion, lets give peace a chance.

DamageInc

555 posts

Ultimate Geek
+1 received by user: 73

Lifetime subscriber

#1580667 26-Jun-2016 19:33

gzt: What are the cancellation terms? If you have not used the service.

As below:

Wheelie Bin Hire Terms and Conditions
Northland Waste Ltd t/a Low Cost Bins hereinafter called ‘the proprietor’ hires to the customer the Wheelie Bin herein described on the following terms accepted by the customer:
1.0 Customer Obligations
1.1 The Wheelie Bin will be placed kerbside by 7am on collection day for collection, with the lid fully closed and opening towards the street. 1.2 The maximum weight of the Wheelie Bin when filled with waste will not exceed 40 kilograms for a 120L bin, or 80 kilograms for a 240L bin. 1.3 The Wheelie Bin will not be used for any other purpose than for waste materials, excluding car parts, steel, hard fill (dirt/sand, concrete,
rocks, stones, bricks), liquids/oils, hot ashes, dead animals, hazardous goods including but not limited to flammable or explosive products,
or any other items deemed by the proprietor that may cause damage to compacting mechanisms.
1.4 The Wheelie Bin is maintained in a neat, clean and tidy condition and shall remain in the customer’s possession and be stored securely at
their premises.
1.5 The customer will observe and comply with all statutes, regulations and requirements governing the use of a kerbside Wheelie Bin. 1.6 Should the customer wish to pay thier account by instalment this is to be done by direct debit only.
1.7 It is the customer’s responsibility to ensure that notice of termination, updates or changes to contact details, bank details and billing
address details are communicated to the proprietor.
1.8 The Customer will not pledge the Wheelie Bin in any way or cause in lien or charge or other type of security interest to be created in
respect of the Wheelie Bin.
1.9 The customer acknowledges that the proprietor may, at any time during the term of this agreement, enter upon the property of the
customer for the purposes of depositing, inspecting, exchanging or repossessing the bin.
2.0 Wheelie Bin
2.1 The Wheelie Bin remains at all times the exclusive property of the proprietor. The customer obtains possession by way of bailment only and does not acquire any proprietary interest in the Wheelie Bin.
2.2 Liability for damage or loss (whether to the proprietor or to third parties) caused by the Wheelie Bin or the customer’s use of the Wheelie Bin will be borne solely by the customer.
2.3 The customer absolves the proprietor of any damages arising from any incidents involving the Wheelie Bin.
3.0 Terms and Renewal
3.1 This agreement commences on the date that the customer signs up for a Wheelie Bin service, for the contracted term selected by the customer at the date of commencement.
3.2 Once the contracted term ends, the agreement becomes a month to month rolling agreement unless notified by either party under clause 5.1 or 6.1.
4.0 Price and Payment
4.1 The customer will pay to the proprietor:
4.1.1 The Wheelie Bin hire charges as agreed at time of sign up or renewal for the contracted period in the manner set out in this
agreement.
4.1.2 Any charges for additional services requested
4.1.3 Any overdue time charges as above.
4.1.4 Costs of damage to or loss of the Wheelie Bin occurring after delivery to the customer and up to the time of return to the
proprietor.
4.2 The proprietor reserves the right to alter rates and charges at any time during the term of this agreement. The proprietor shall give the
customer 30 days’ written notice of any such price increase.
4.3 The prices stated in this agreement are based on the waste collection address at the time of sign up. The proprietor reserves the right vary
the price if the collections address changes.
4.4 Where Direct Debit installment payments is chosen as the method of payment for the services, the customer must provide in writing the
customers bank details and nominated deduction day and frequency in the format required by the proprietor.
4.5 It is the customers responsibility to ensure that funds are available on the nominated payment date. The proprietor is not liable for any
fees incurred for insufficient funds.
4.6 The customer acknowledges that the charges set out in this agreement will be payable irrespective of whether the services will not be
required by the customer for any period during the contracted period, or whether the customer does not put the Wheelie Bin out for
collection for any period.
5.0 Default
5.1 Where the customer fails to pay the agreed hire charges or any other charges incurred or if there are insufficient funds in the customer’s nominated bank account for the Direct Debit to be honoured or the customer is in breach of any obligations under this agreement the proprietor reserves the right to:
5.1.1 Suspend services until such time as the customer has remedied the breach or paid all outstanding amounts.
5.1.2 Terminate this agreement immediately and retrieve the Wheelie Bin.
5.2 The termination of this agreement by the proprietor does not absolve the customer of liabilty to pay all amounts due or outstanding under this agreement.
5.3 The customer will be liable for any costs incurred in collecting any outstanding charges to the customer’s account.
6.0 Termination by the Customer
6.1 The agreement may be terminated by the customer by giving 30 days written notice.
6.2 An early termination fee of $30.00 will apply where the agreement is being terminated within the contracted term, or where 30 days notice is not provided.
6.3 The customer is not entitled to any refund of any unused portion of the agreement.

Pop! OS

DamageInc

555 posts

Ultimate Geek
+1 received by user: 73

Lifetime subscriber

#1580668 26-Jun-2016 19:34

It appears I can cancel but no refund

Pop! OS

mdf

3566 posts

Uber Geek
+1 received by user: 1519

Trusted

#1580670 26-Jun-2016 19:38

...

6.0 Termination by the Customer
6.1 The agreement may be terminated by the customer by giving 30 days written notice.
6.2 An early termination fee of $30.00 will apply where the agreement is being terminated within the contracted term, or where 30 days notice is not provided.
6.3 The customer is not entitled to any refund of any unused portion of the agreement.

That kinda sucks. Basically you can terminate but you're not getting a refund. If you felt really strongly about it, you could have a crack with the Commerce Commission about the termination provision (but not the upfront cost) being unfair. This says you can terminate, but you're not getting any money back, and by the way, if you have the temerity to try and terminate without 30 days notice (though why you would...) we'll sting you with another $30 penalty. Penalties are generally unenforceable.

Geekzone

Want to support Geekzone and browse the site without the ads? Subscribe to Geekzone now (monthly, annual and lifetime options).

DamageInc

555 posts

Ultimate Geek
+1 received by user: 73

Lifetime subscriber

#1580672 26-Jun-2016 19:50

mdf:

...

6.0 Termination by the Customer
6.1 The agreement may be terminated by the customer by giving 30 days written notice.
6.2 An early termination fee of $30.00 will apply where the agreement is being terminated within the contracted term, or where 30 days notice is not provided.
6.3 The customer is not entitled to any refund of any unused portion of the agreement.

That kinda sucks. Basically you can terminate but you're not getting a refund. If you felt really strongly about it, you could have a crack with the Commerce Commission about the termination provision (but not the upfront cost) being unfair. This says you can terminate, but you're not getting any money back, and by the way, if you have the temerity to try and terminate without 30 days notice (though why you would...) we'll sting you with another $30 penalty. Penalties are generally unenforceable.

Been with them a couple years now, must say first time I've read the terms. My bad.

As MikeB4 suggests above I could give the comcom a go. Just thought it was a bit stink they didn't inform existing customers of the price change.

Pop! OS

gzt

18679 posts

Uber Geek
+1 received by user: 7809

Lifetime subscriber

#1580675 26-Jun-2016 19:55

If you are entering this contract as a comercial entity then it is a different set of rules

As a consumer I would have thought same day cancellation of an unused service and refund is required.

Is there a 7 day period for mail order or phone? Is there something like that and does it apply here?

mdf

3566 posts

Uber Geek
+1 received by user: 1519

Trusted

#1580690 26-Jun-2016 20:25

Cooling off periods only apply to door-to-door and telemarketing sales ("uninvited direct sales"), and a few other sorts of special contract (consumer credit contracts and some financial/investment-type contracts).

NonprayingMantis

6434 posts

Uber Geek
+1 received by user: 1528

#1580692 26-Jun-2016 20:38

Contract law is offer and acceptance.
They offered you a service for a certain price. You accepted.

The fact that they offered the same service to someone else is utterly irrelevant unless there is clause is the contract specifically about that.

Might be annoying, but consider if it happened the other way around? I.e. They agreed to charge you $x then came back and said 'oh sorry, we found someone else willing to pay more so no you also have to pay more'

DamageInc

555 posts

Ultimate Geek
+1 received by user: 73

Lifetime subscriber

#1580694 26-Jun-2016 21:05

Bummed
Thanks all for the feedback

Pop! OS

Quic Broadband

Move to New Zealand's best fibre broadband service (affiliate link). Free setup code: R587125ERQ6VE. Note that to use Quic Broadband you must be comfortable with configuring your own router.

Bung

6733 posts

Uber Geek
+1 received by user: 2926

Subscriber

#1580695 26-Jun-2016 21:09

This is probably a cheap rate for the 1st year only for new customers. They would then be on the same rate you are on. You've already found that the rate is better than alternatives. I would have taken the extra months offered.