Tuesday, 25 August 2009

Service Agreement Scam #2 - The 5 year deal!

This is a great one. Mr Unscrupulous Copier Dealer signs you up to a 5 year service agreement. Now, if he has done what he probably can't resist doing, he will have signed you up to a 3 year lease agreement. So there's a 2 year gap between the copier lease agreement and the end of the service agreement. Nice. Now he can sell you another copier. Or he can carry on charging you rental on the one that you've got, for which the finance will have been paid off in the 3 year term.

And don't worry, if he does sell you an upgrade, you can bet your last pound (if he hasn't already nicked it) that he will be renting the one that he told you was too old to somebody else.

Don't sign a 5 year deal. 3 years is long enough.


[My story: I ran a project that resulted in £250,000 of liability in contracts that contained terms that, whilst legal, were grossly unfair. If you want more advice for free call me on 07872 916618]

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