We hear from business owners every week who are frustrated with their HiHi contract. The story is usually the same: they signed up after seeing the TV advert or taking a sales call, the system works well enough, but they’ve since realised they’re locked in for seven years — and they’re paying more than they need to.
If that sounds familiar, this post is for you. We’ll walk through what you can actually do, what to watch out for, and how to plan your exit so you’re not caught out by auto-renewal clauses.
First: understand what you signed
HiHi contracts (provided by 4com) are typically structured as two separate agreements — a service agreement for the phone system and a finance or lease agreement for the hardware. These can have different terms and different exit processes, so the first step is to dig out both documents and check the following:
- What is the total contract length? (Usually 7 years / 84 months on the service agreement.)
- When does it end? Work out the exact month.
- What is the notice period? (Usually 90 days’ written notice before the end of the term.)
- Is there a separate finance agreement? If so, who is the finance provider and what are the termination terms?
- Have you had any upgrades? Each upgrade may have restarted the 7-year clock.
If you can’t find your original paperwork, request a copy from 4com in writing. You’re entitled to it.
Option 1: Wait it out and plan the switch
If you’re more than halfway through your contract, the most cost-effective option is usually to wait, set a calendar reminder 120 days before the contract end date (giving yourself a buffer beyond the 90-day notice period), and send your notice of termination in writing at that point.
In the meantime, start getting quotes from alternative providers so you’re ready to switch the moment the contract ends. We can give you a no-obligation quote at any time — you don’t need to wait until the final month. Having a quote in hand also helps you compare and make sure you’re not tempted to just auto-renew because it’s easier.
The critical thing is: do not miss the notice window. If you don’t give notice, the contract auto-renews for another 12 months, and you’ll be stuck for another year.
Option 2: Negotiate an early exit
If you’re in the early years of your contract and the remaining cost to run is significant, it may be worth contacting 4com and asking about an early termination. In most cases, they will ask for the remaining monthly payments in full — which can be thousands of pounds and rarely makes financial sense.
However, there are exceptions. If there has been a material change to the service terms (such as a significant price increase that wasn’t clearly stated in the original contract), or if you believe the contract was mis-sold (for example, the term length wasn’t made clear during the sales process), you may have grounds to dispute the contract or negotiate a reduced exit fee. If you’re in this situation, it’s worth seeking advice from your solicitor or contacting Citizens Advice.
Option 3: Check for a cooling-off right
If you signed your HiHi contract within the last 14 days, and the contract was signed off-premises (i.e. not at your business address — for example, at a trade show or over the phone), the Consumer Contracts Regulations 2013 may give you a 14-day cooling-off period. This applies to some small business contracts as well as consumer ones, depending on the circumstances. Act quickly if this applies to you.
Option 4: Check the finance agreement separately
The hardware finance agreement may be with a different company (not 4com directly) and may have different early-settlement terms. Finance agreements are covered by the Consumer Credit Act, and you have the right to request an early settlement figure at any time. In some cases, settling the finance early and switching the service is cheaper than paying out the full service contract.
What to do right now
Even if you can’t leave today, the best thing you can do is get prepared. Here’s a simple checklist:
- Find your contract documents (service agreement + finance/lease agreement).
- Note the exact end date and the notice period.
- Set a calendar reminder 120 days before the end date.
- Get a quote from an alternative provider so you know what the market looks like. (We can do this for you in 24 hours — call 020 8733 0000 or visit our HiHi alternative comparison page.)
- If you believe the contract was mis-sold, keep any evidence (emails, notes from the sales call, marketing materials you were shown) and seek advice.
How Forest can help
We’re Forest Communications, and we provide UK SMEs with a cloud-hosted business phone system from £18 per handset per month on a 36-month contract — no £150 admin fee, no 7-year lock-in. We handle the number porting so you keep your existing numbers, and most installs are live within 5–10 working days.
We’ve helped many businesses transition off HiHi and similar long-lease contracts. If you want to talk through your specific situation — no hard sell, just honest advice — give us a call on 020 8733 0000 or visit our HiHi alternative comparison page.
Recent Comments