Photocopy firm under fire for regulator claims

Photocopy firm under fire for regulator claims
News RN Services
Login or register to save this article

A group set up to support retailers in dispute with photocopy hire firm Ezeecopy has accused it of misleading members over its claim its contracts have been endorsed by the UK’s financial regulator. 

The firm, which states its hire agreements have been authorised by the Financial Conduct Authority (FCA), is currently in a dispute with several retailers in a 50-strong support group over alleged mis-selling of photocopier services after claims emerged that it had charged retailers more than they had expected and above the demand for a photocopier service in their stores. 

In many cases, retailers are now being billed more than £60 per month to house what they claim is an unprofitable service and must meet daily sales targets they say were not made clear when contracts were signed. Several are now liable for costs averaging £5,000 if they attempt to exit
the contract. 

However, as RN previously reported, Ezeecopy stated in at least one investigation by the Financial Ombudsman Service that the retailer in question had been talked through the relevant terms and conditions.

Speaking on behalf of the Ezeecopy Support Group, Mark Bennett said: “Ezeecopy has stated that agreements with retailers have been drawn up by a consumer credit expert and accepted and agreed by the FCA, but this latter point is not true.”

In a letter, seen by RN, the company states: “We confirm that we are authorised and regulated by the Financial Conduct Authority and have been since 17 November 2014. As part of the process of application we had to submit amongst many other documents a copy of the Hire Agreement.”

Similarly, Ezeecopy told RN’s sister title Retail Express on 10 January 2018 with specific reference to a court case against retailer Pawan Kumar: “We have used fundamentally the same Agreement during this period updating it as required to comply with any legislative or regulatory changes. The Agreement over this period has been accepted and agreed by the Office of Fair Trading and currently the FCA.”

“These agreements are leaving many small businesses in a dire financial situation and are threatening to force some out of business. Only last week, I had to deal with one victim who was suicidal,” Mr Bennett added. 

The FCA confirmed it does not endorse services or agreements offered by the firms it authorises and regulates. 

A spokesperson for the FCA said: “Generally, business-to-business agreements are not considered as regulated consumer agreements and, as such, would fall outside of the FCA’s remit.”

Ezeecopy strenuously denies the allegations made against it, however declined to provide further comment on this story.

The firm, which states its hire agreements have been authorised by the Financial Conduct Authority (FCA), is currently in a dispute with several retailers in a 50-strong support group over alleged mis-selling of photocopier services after claims emerged that it had charged retailers more than they had expected and above the demand for a photocopier service in their stores. 

In many cases, retailers are now being billed more than £60 per month to house what they claim is an unprofitable service and must meet daily sales targets they say were not made clear when contracts were signed. Several are now liable for costs averaging £5,000 if they attempt to exit
the contract. 

However, as RN previously reported, Ezeecopy stated in at least one investigation by the Financial Ombudsman Service that the retailer in question had been talked through the relevant terms and conditions.

Speaking on behalf of the Ezeecopy Support Group, Mark Bennett said: “Ezeecopy has stated that agreements with retailers have been drawn up by a consumer credit expert and accepted and agreed by the FCA, but this latter point is not true.”

In a letter, seen by RN, the company states: “We confirm that we are authorised and regulated by the Financial Conduct Authority and have been since 17 November 2014. As part of the process of application we had to submit amongst many other documents a copy of the Hire Agreement.”

Similarly, Ezeecopy told RN’s sister title Retail Express on 10 January 2018 with specific reference to a court case against retailer Pawan Kumar: “We have used fundamentally the same Agreement during this period updating it as required to comply with any legislative or regulatory changes. The Agreement over this period has been accepted and agreed by the Office of Fair Trading and currently the FCA.”

“These agreements are leaving many small businesses in a dire financial situation and are threatening to force some out of business. Only last week, I had to deal with one victim who was suicidal,” Mr Bennett added. 

The FCA confirmed it does not endorse services or agreements offered by the firms it authorises and regulates. 

A spokesperson for the FCA said: “Generally, business-to-business agreements are not considered as regulated consumer agreements and, as such, would fall outside of the FCA’s remit.”

Ezeecopy strenuously denies the allegations made against it, however declined to provide further comment on this story.

Keep up to date with the Ezeecopy case and the latest trade news by becoming a Premium subscriber to RN. 

Read how a retailer’s complaint against Ezeecopy was upheld

Read more
By Helena Drakakis  Avatar
By Helena Drakakis 08 Jun, 2018

Comments

1 comments
  • By Ananda 08 Jun, 2018
    Reply

    They (ezeecopy) must be behind barstools

During the hot weather, what category makes your alcohol sales shine?

Make the most of betterRetailing.com

You know your shop better than anyone. Now you can decide exactly what news, advice and retailer case studies that you want to see to help you improve your business.

Subscribe to personalise your content Already have an account? Login