Always read the small print, warns FPB

The Forum of Private Business (FPB) has today urged owners and managers of smaller firms to ensure they fully understand the ramifications of signing contracts before putting pen to paper.

The message comes in the wake of FPB member David Fayís experience with cheque authorisation company, Certegy Ltd. Mr Fay, who owns and runs a Liverpool-based heating supply company, was shocked to find that Certegy ñ also known as TRANSAX ñ had added a stealthy ëannualí charge to his January invoice, a charge that he was certainly not expecting.

Although Mr Fay had been happy with the service provided by Certegy Ltd, he was appalled to find that he had been notified of the charge only through a Christmas newsletter. Speaking on the subject, Mr Fay said: I had not been informed of this fee when I started using the service, and we scarcely get time to speed read all the newsletters we get sent. If it had been an official letter showing a charge we may have taken a little more notice.

The point is not that the fee is too high, it is simply a matter of principle. It seems to me that this company deliberately disguised this charge, and many owners and managers like myself, busy with the nuts and bolts of running a business, have not even noticed it. The fact that the company settled the matter so quickly is, for me, an admission of guilt and I would warn fellow business owners to be wary.

The FPBís Chief Executive, Nick Goulding, said that small businesses were under constant threat from such charges: Stealth charges are an increasing worry for our members and we urge them to go through all documents with a fine-tooth comb before signing up to anything. We realise this is a time-consuming process, but unfortunately it is the only way to be sure you will not fall victim.

The FPB provides a manned helpline for any queries that its members have, and Mr Goulding urged members to make use of it: We have experts in contract law and small print on hand to help smaller firms through this potentially troublesome area. We urge our members to make use of this service if they have any queries.