posted 11th December 2025
4Com, HiHi Phones and BNP Paribas: Are You Trapped in an Expensive Business Telecom Lease?
If your business or charity thought it was signing up for an affordable 2-year phone system with 4Com or another telecoms provider, only to discover a 5–7 year finance lease in the small print, you’re not alone.
Across the UK, owners are discovering that what looked like a simple “cost-saving upgrade” has left them paying tens of thousands of pounds for a handful of phones and a broadband line, often via a separate finance company such as BNP Paribas Leasing Solutions.
Many only realise the true cost when the initial “discounted” period ends and their payments suddenly jump. At Meridian Legal Services, we specialise in helping businesses and charities challenge these arrangements, reduce or cancel their payments, and, where possible, recover money already paid.
How the 4Com / HiHi Model Typically Works
While every contract is different, a common pattern reported by small businesses looks like this:
1. The “2-Year Deal”
A salesperson focuses on a 2-year term and a low monthly figure, selling a bundled package of phones, broadband and support. The conversation rarely lingers on what happens after those two years.
2. The Hidden Long-Term Lease
Behind the scenes, the hardware – HiHi handsets, routers, phone system – is often funded by a separate finance agreement, commonly with a third-party such as BNP Paribas Leasing Solutions. Those agreements can run for 60, 72 or 84 months, even though the service contract is only 24 months.
3. Artificially Low Payments at the Start
To make the deal look attractive, some customers report receiving rebates or “cashback” for the first couple of years. In reality, that money usually comes from the inflated cost of the long lease itself, it’s not free cash, it’s your own money recycled up-front.
4. The Shock After Two Years
When the rebate or introductory offer ends, the true monthly cost is revealed. Businesses suddenly find they are paying several hundred pounds per month for equipment they thought was “free” or included.
5. The Pressure to “Upgrade”
At this point, many report being told that the only way to “keep payments low” is to upgrade – which often means signing another long lease, sometimes overlapping with the first. Over time, this can create layered finance agreements and eye-watering total costs.
4Com and other providers typically state that all terms are clear and that customers are given full documentation. In media coverage and public statements, 4Com has strongly denied allegations of mis-selling, saying most of its customers are satisfied with their service.
Investigative journalist Caroline Bilton from the BBC, and we would agree to disagree!
The Real Cost of HiHi Phones
One of the most shocking aspects of these cases is the total cost of relatively basic equipment. Examples reported in the public domain include:
- Over £22,000 for just four phones over the life of a lease.
- More than £50,000 in payments for a small phone system in a single local business.
- Monthly leasing costs of £1,000+ for a handful of handsets and a router.
By the time you reach the end of a 5–7 year lease, you may have paid enough to buy the phones many times over, and you still might not own them, depending on the structure of the agreement. For many small businesses and charities, that is simply not what they thought they were signing up for.
Where Do Finance Companies Like BNP Paribas Fit In?
In many cases we see, the telecoms provider (for example, 4Com) is not the company taking the ongoing payments for the equipment. Instead, the phones are leased via a specialist finance provider, often under names such as:
- BNP Paribas Leasing Solutions
- BNP Paribas Leasing Solutions UK
- Other office and IT equipment lessors
These are legitimate, FCA-authorised businesses offering equipment finance across multiple sectors. However, when their products are sold through aggressive or unclear telecoms sales models, customers can end up in long, inflexible agreements they never fully understood. The result? You might be perfectly happy to change phone supplier, but you’re still stuck with years of payments to the finance company for equipment you no longer want.
Can These Contracts Be Legally Challenged?
Yes, they can often be challenged, especially for small businesses and charities. Common issues we investigate include:
- Misrepresentation – Were you told (or allowed to believe) that the whole deal was only 2 years, or that you would own the phones after a short period?
- Lack of transparency – Was the involvement of the finance company, such as BNP Paribas, clearly explained before you signed? Were you shown the true total cost over 5–7 years?
- Unsuitable terms for small organisations – Is it reasonable to tie a small business or charity into a long, non-cancellable lease for rapidly depreciating telecoms equipment?
- Pressure selling and upgrade cycles – Were you pushed into signing quickly, or into repeated “upgrades” that effectively refinanced old debt into new contracts?
Get a Free Contract Review Today
Meridian Legal Services can review your 4Com, HiHi and finance agreements and tell you:
- Whether you may have been mis-sold
- What routes you have to challenge the contract
- Whether you might be able to reduce, cancel or reclaim payments
📞 Call us on 0121 516 0675
💻 Or visit our Client Upload Area on the Meridian Legal Services website to securely send us your contracts for a no-obligation review.
