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Did the contract contain an address at which a notice of cancellation must be delivered?
Unfortunately, your situation is not unique. Canceling these credit card processing contracts is often difficult.
Not that I can find as of yet but it did say 30 written notice. I have been trying to do so but so far no help. I spoke with them last week about canceling and about some other issues now they say since they didn't receive the letter before 6/28 the contract was renewed and binding and I have to stay another year.
Submission of a notice to terminate must be done as required in the service contract. Of course, if a company interferes with an attempt to terminate that provides grounds on which to challenge any resulting attempt to enforce a renewal.
so what can I now do?
Documentation of attempts to obtain an address for cancellation along with copies of phone records showing verbal notice was given would typcially be included in a demand letter notifying the company of one's intent to proceed with termination. Any interference with termination attempts would be noted in such a letter.
In those situations, sometimes the processing company will pursue a claim in court or attempt to retain funds in their possession.
When that occurs a merchant will typically have an attorney write the company a demand letter regarding the release of the funds held and as a last resort may file a civil suit to obtain the funds.
just a moment please
The issue would typically be whether the notice to terminate was provided as required under a service agreement and whether a credit card processor interfered with attempts to terminate by either not providing a mailing address or providing false verbal reassurances that termination had occurred.
Have I lost you?
no sorry tied on phone for one second
Do you understand the information I posted?
I do understand but can they legally bind me to another year?
It is a matter of a contractual dispute. In essence, the company would need to try to enforce the contract in court or simply try to retain your money.
If the company tried to retain your money, then you would be forced to court to try to recover the funds. t
The issue would be whether the renewal is enforceable.
That largely turns on the language in a contract.
What if I get another processor and then very seldom use theirs but still do in order to not default. Then can they prove that I am not just having a lot of card use?
Such renewal contracts can be enforceable, but a party to the contract cannot interfere with attempts to terminate such as by not providing an address or providing a wrong address for notice of termination.
That depends on whether there is a minimum usage requirement or exclusivity requirement under the contract. One would need to review the service contract for those details.
Should I at this point reserve legal counsel? I am very unhappy with this processor!!!
Do you understand?
That would certainly be a good idea. Sometimes a letter from an attorney can resolve these issues.
These companies want to avoid litigation due to the expense involved.
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Thank you I think you have done a good job but just not what I wanted to hear. I want them out of my business but wanted to know legally where I stood. Thank you!
I understand and appreciate you not holding me accountable for the difficulties the law can sometimes present.
Thank you again
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