When choosing a Records Management or Document Storage provider, most businesses focus on two primary factors — security and cost. While competitive pricing and promises of compliance with regulations like GDPR may be enticing, there is one area many providers choose not to discuss upfront: Permanent Removal Charges, often referred to as ‘Perm Out Fees’.
These hidden charges can be significant and have the potential to trap businesses into long-term agreements with costly consequences. In this blog post, we explain what permanent removal charges are, how they can impact your organisation, and how you can avoid being caught out by unfair contract terms.
What Are Permanent Removal Charges?
Permanent Removal Charges (Perm Out Fees) are costs levied by a document storage supplier when a customer chooses to terminate their agreement and have their boxes or files returned. These charges often aren’t clearly disclosed during the quotation process, and many providers use vague contract language to reserve the right to charge for exit services at a rate of their choosing.
Why Do Businesses Get Caught Out?
Unfortunately, at MDSS we often speak to organisations looking to change Records Management provider due to reasons such as:
Poor customer service
Excessive annual price increases
Relocation of premises
Evolving document management needs
At this point, clients are frequently shocked by astronomical perm out charges, which may include:
Picking fees per box or per file
Pallet handling charges
Extended notice periods
Administrative or GDPR processing charges
When combined, these costs can render it financially unviable to switch providers, forcing clients to stay in an unsatisfactory agreement.
How to Avoid Unfair Perm Out Charges
To prevent being locked into a restrictive and costly contract, we recommend taking the following steps before signing with any document storage supplier:
1. Always Discuss Exit Costs Upfront
Don’t hesitate to ask for a clear explanation of exit fees, including any permanent removal charges, destruction fees, or administrative costs.
2. Clarify Charging Basis
Establish whether perm out fees apply per box or per file. A per-file charge is often significantly more expensive, especially if your archive includes numerous files per box.
3. Negotiate Shredding Costs Separately
If you plan to destroy documents during your contract, clarify whether removal charges will apply in addition to destruction fees. This is an area where hidden charges often arise.
4. Demand Transparency in Agreements
Ensure all charges - including GDPR processing fees, administration charges, or annual increases - are fully disclosed in your contract. Agree on fixed values or specify that prices will not change during the contract term.
5. Agree to a Fair Exit Clause
Negotiate an exit clause allowing you to terminate the agreement without penalty if service levels decline or price increases exceed RPI (Retail Price Index).
6. Be Aware of Auto-Renewing Contracts
Ensure you know the notice period required to terminate your agreement and avoid being locked into another contract term unintentionally.
MDSS – Transparent, Fair, and Client-Focused
At The Maltings Document Storage Solutions (MDSS), we firmly believe that permanent removal charges should be fair, transparent, and never used to prevent clients from leaving.
Our approach:
We disclose our permanent removal fee as a clear monetary value, covering the labour involved in handling your exit — no hidden costs or inflated charges.
We never use exit fees to trap clients. Instead, we aim to deliver such high service levels that clients stay with us because they want to, not because they have to.
We welcome due diligence visits and are always happy to discuss exit policies upfront, demonstrating our commitment to transparency and fair competition.
Final Thoughts:
Changing your records management provider shouldn’t be difficult — and you certainly shouldn’t have to pay excessive fees to retrieve your own property. By understanding the permanent removal charges associated with document storage agreements and knowing what to look for, you can avoid costly surprises and maintain control over your confidential records.
Considering changing your document storage provider? Contact MDSS today for a transparent, no-obligation consultation — and experience a service where the client always comes first.
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