FT PayPoint transaction

I had a very distressed retailer on my helpline. His name is Vijay Kumar Sund and he is very new to retailing in Letchworth Garden City. It is not going very well for him and he thinks he has been taken for a ride. He got signed up to PayPoint just a couple of weeks after starting his new career. It was a cold call and he says he didn’t know there would be charges until he got a bill for £80 + vat. He asked why there wasn’t a cooling off period. When he rang PP he was told that the contract was for five years and it would cost him £600 to come out of the contract. His turnover is only £1,000 a week and he has since discovered that there are too many PP terminals in his area. He says: “They didn’t tell me that.” (They wouldn’t; they’re on commission.)

I contacted the company and Ben Ford, retail services director at PayPoint said: “PayPoint values all its retailers and we work hard to ensure they all have the tools, materials and services they need to help increase footfall, generate income and become a focal point for the community.

“I’m pleased to see this situation has been resolved swiftly. Our customer service team is always on hand to assist retailers with any concerns they have and help them get their best out of their PayPoint services.”

I rang Vijay up to find out what shape this ‘situation resolved’ looked like. PayPoint has offered him three months free to see if he can build up the service otherwise it will be £600 to quit. 

I suggested he might try the services of the Financial Ombudsman.