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JBaxLaw
JBaxLaw, Attorney
Category: Business Law
Satisfied Customers: 11396
Experience:  Experienced in business formation and licensing issues
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My contract with my credit card processor expires 7/28/12.

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My contract with my credit card processor expires 7/28/12. I have been trying to cancel with this vendor and they now say that since they didn't receive a letter by 6/28/12 that my contract is renewed and they will not let me out. Is there anything I can do?

BizAttorney :

Hello, I am a professional here to assist you. I appreciate your use of this service.

BizAttorney :

Hello

BizAttorney :

I see that you have joined me.

BizAttorney :

Before we get started I would like to provide a brief explanation of how this system works.




In essence, when we are done you will leave a rating for my answer.




I only receive credit for assisting you if you leave a positive rating. The rating only applies to my answer. In some situations I will supply accurate legal information to customers who feel that information is "bad news." Please do not hold me accountable if the information provided was not what you were hoping to hear. We answer questions relying on an honor system with the hope that customers will do the rights thing and provide a positive rating so that we are credited for your work.


 


 




BizAttorney :

Please let me know if you are ready to start.

Customer:

I am ready.

BizAttorney :

Great.

BizAttorney :

Did the contract contain an address at which a notice of cancellation must be delivered?

BizAttorney :

Unfortunately, your situation is not unique. Canceling these credit card processing contracts is often difficult.

Customer:

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.

BizAttorney :

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.

Customer:

so what can I now do?

BizAttorney :

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.

BizAttorney :

In those situations, sometimes the processing company will pursue a claim in court or attempt to retain funds in their possession.

BizAttorney :

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.

Customer:

just a moment please

BizAttorney :

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.

BizAttorney :

yes

BizAttorney :

Have I lost you?

Customer:

no sorry tied on phone for one second

BizAttorney :

No problem

BizAttorney :

Do you understand the information I posted?

Customer:

I do understand but can they legally bind me to another year?

BizAttorney :

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.

BizAttorney :

If the company tried to retain your money, then you would be forced to court to try to recover the funds. t

BizAttorney :

The issue would be whether the renewal is enforceable.

BizAttorney :

That largely turns on the language in a contract.

Customer:

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?

BizAttorney :

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.

BizAttorney :

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.

Customer:

Should I at this point reserve legal counsel? I am very unhappy with this processor!!!

BizAttorney :

Do you understand?

BizAttorney :

That would certainly be a good idea. Sometimes a letter from an attorney can resolve these issues.

BizAttorney :

These companies want to avoid litigation due to the expense involved.

BizAttorney :

I hope that you will be so kind as to leave me a positive rating as this ensure I receive credit for assisting you.

BizAttorney :

The session will end when you leave a rating, but you can always post questions to me later if you think of anything else even after leaving a rating.

Customer:

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!

BizAttorney :

I understand and appreciate you not holding me accountable for the difficulties the law can sometimes present.

BizAttorney :

Thank you again

BizAttorney :

If you have any problems with the rating feature please let me know.

BizAttorney :

Are you still with me?

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