Shopkeeper wins bitter copier dispute
A SHOPKEEPER, who disputed the hire agreement sold to him by photocopier supplier Ezeecopy, says he has had a weight lifted from his shoulders after his complaint was upheld by the Financial Ombudsman Service (FOS).
“My family has worked hard to build a business serving the community and I’m very glad I did not give in. I challenged a deal that was not made clear to me,” Palasupramaniam (also known as Dhanu) Paladhanushan told Crusader after receiving a final decision in his favour last month.
The London-based convenience store owner is a sole trader and typical of many modest enterprises that are the bedrock of local high streets.
Dhanu contacted Crusader after being up-in-arms about the agreement he had signed with Ezeecopy. This enabled him to have equipment installed and offer extra photocopying and printing services.
The aim was to increase footfall, but it turned out to be less profitable and more expensive than he expected. His understanding was he would receive 50 per cent commission on any sales made and was not locked into any minimum term.
After he had unexpected payments taken, however, he told Ezeecopy he wanted to leave the deal. He did not like the options he was then offered, which included paying a £2,131 exit fee.
But, as his is not a limited company, Dhanu had a regulated consumer credit agreement which meant his complaint could be considered by the FOS. His first submissions were not upheld but he pressed on. Ezeecopy asked for the case to be dismissed but at the final appeal stages Ombudsman Simon Wingfield upheld his complaint.
“Final decisions are published and I want other traders to know what went on, so it may help them,” Dhanu explained.
In an immaculately reasoned adjudication that took account of the pressures on sole traders, Ombudsman Wingfield said: “Mr Paladhanushan doesn’t run a large, sophisticated business. Considering the agreement and the broader circumstances around the sale, he wasn’t correctly informed, despite him being a businessperson.”
Ezeecopy should cancel the hire agreement with nothing further to pay, collect the goods and paper at no cost and “remove all records of the hire agreement from Mr Paladhanushan’s credit file”, he added.
Dhanu now needs to confirm acceptance of the legally binding decision.
Ezeecopy said it had “no other cases at the FOS. This is the first time it has received such a decision from [it].
“Ezeecopy is still selling copier contracts and terms continue to vary but all comply with current legislation.”
The FOS says it has received just over 10 complaints relating to this matter. Dhanu warns his fellow shopkeepers not to trust the sales patter: “We’re so busy, sometimes our English is not perfect. Read the contract but never sign until you understand what it really means.”
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