Mis-Sold Phone Contracts: How to Protect Your Business

Mis-sold phone contracts are leaving UK’s small businesses at risk – In this article we’re breaking down everything you need to know.

Natalie Strange

Managing Director @ RPS Telecom

November 4, 2025

A recent BBC investigation has shed light on the growing issue of small businesses being mis-sold telecom contracts, with one family-run care home claiming their business could close as a result.

The owners of Ashleigh Residential Home in Derbyshire said they were misled into signing a contract that cost significantly more than what had been verbally agreed. Their experience isn’t isolated, hundreds of small business owners across the UK have reported being locked into lengthy, high-cost finance deals for their phone and broadband systems, often with confusing terms and limited support.

When companies mis-sell telecom solutions, it damages trust across the entire industry. While we can’t prevent companies from carrying out these practices, we can help you understand what to look out for so you can spot a bad deal before it’s too late.

The Problem with Misleading Sales Practices

Across the telecoms industry, there are still companies using high-pressure tactics and unclear contract terms to secure long-term deals that don’t reflect what was promised. In many cases, these businesses believe they’re signing up for an affordable business phone system, only to later discover they’ve agreed to complex equipment leases or hidden finance agreements lasting several years.

The consequences can be devastating, especially for the UK’s small businesses, charities, and care providers where every penny counts. Once signed, these contracts are difficult to escape, leaving companies paying thousands more than they budgeted for.

Unfortunately, this kind of selling still happens far too often in an industry where transparency and trust should come first.

What to Look Out for When Choosing a Telecoms Provider

If your business is reviewing or renewing its telecoms services, here are some key red flags to watch for:

Contract Length – Anything over 3–5 years should be carefully considered.
No Cooling-Off Period – B2B contracts don’t have the same rights as consumer deals.
Finance Agreements – Check if your deal involves a leasing company.
Hidden Fees – Scrutinise any add-on services or “upgrades.”
Exit Clauses – How much would it cost to leave early?
Pressure Tactics – Never sign “there and then.” Always take time to review.
Total Cost – Look at the full-term price, not just the monthly amount.
Ownership – At the end of the contract, do you actually own the equipment?
Verbal vs Written – Only what’s written counts; get everything in writing.
Small Print – It’s tedious, but it’s where the truth is.

Doing a little due diligence now can save your business thousands later. If you work in a regulated or sensitive industry like healthcare, finance, or education, it’s especially important to work with a provider that understands compliance and transparency.

How We Do Things Differently

At RPS Telecom, we believe trust should be the foundation of every partnership. We’re an award-winning UK telecom provider with over 20 years of experience delivering clear, flexible, and reliable solutions for businesses of all sizes.

Here’s how we help protect our customers:

Transparent pricing: Every quote we provide is clear, detailed, and easy to understand—no hidden fees, no unexpected finance agreements.
Flexible contracts: We offer scalable terms tailored to your business, not one-size-fits-all deals.
Five-star support: Our local team in Wales is always on hand to provide honest advice and quick assistance.
Ethical selling: We’ll never pressure you into a deal—our priority is finding what genuinely works best for your business.

If you’re worried that you’ve been mis-sold a telecom contract or simply want to make sure your next agreement is fair and transparent, our experts are here to help. We can review your setup, explain your options, and guide you toward a modern, honest telecom solution that supports your business instead of trapping it.

Get the Clarity and Support You Deserve

No business should feel tricked or trapped by their telecom’s provider. If you’re looking for an open, trustworthy partner who puts your needs first, talk to RPS Telecom today.

Our team can help you transition to a reliable, cost-effective business phone system with no hidden costs, no confusing contracts, and support that actually cares.

Get in touch today to discuss your telecoms setup and see how we can help protect your business communications.

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