OFT to investigate photocopier leasing

THE OFFICE of Fair Trading is to launch an inquiry into the photocopier leasing industry after a flood of complaints.

The probe was welcomed by the Campaign to Clean up Copier Contracts, the lobby group set up a year ago to publicise what it believes are unfair contracts and practices.

Paul Winner, of the campaign, said: 'We are delighted that the OFT has decided to investigate in such depth all aspects of the industry. We hope it will not take too long and that cowboy salesmen will be eliminated.'

Mr Winner was particularly pleased that the often close relationship between copier manufacturers, distributors and finance companies will be investigated.

He is concerned that leasing companies, sometimes owned by high street banks, have been involved in high pressure sales techniques which have persuaded customers to sign over-long and expensive contracts.

Last week the campaign wrote to the OFT seeking an inquiry into one of the industry's biggest and most profitable companies, Southern Business Group. Southern admitted on Monday that it had dismissed staff after they overcharged customers, causing its shares to fall sharply.

Sir Bryan Carsberg, Director-General of Fair Trading, said yesterday: 'My office has received a large number of complaints. These suggest that there may have been a good deal of misrepresentation and sharp practice on the part of some traders.'

The inquiry will focus on the industry's sales methods, the nature and length of agreements and the clarity of documentation. Sir Bryan said he would also look at the leasing of other pieces of office equipment, including franking and vending machines.

The industry has operated under a cloud of suspicion for several years. Mr Winner has received more than 3,000 complaints and inquiries over the past 12 months.

Last year the OFT investigated Eurocopy, one of the biggest photocopier groups, although it concluded that there was no case for revoking its credit licences. Eurocopy's chairman, Cyril Gay, said he welcomed the probe and was happy to give evidence.

Roger Limpenny, Southern's finance director, said he was delighted about the inquiry. 'We will stand or fall on the investigation and will get credit for what we have achieved,' he added.

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