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Can a credit card processing equipment leasing company charge me for not having insurance under IN contract law
Osgood, IN
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Posted about 1 year ago in Debt / Lending Agreements
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Predatory lease agreements:
I leased some credit card processing equipment from what turned out to be a very unscrupulous company. I sold my business and returned their equipment. They claim the lease is "Uncancellable." I have continued making regular rental pmts. They are also trying to charge a $5 per month "Insurance noncompliance fee" on equipment that is no longer in my possession. They acknowledge receipt of the equipment. Can they legally charge me for not having insurance on something not in my possession. Too late, I learned the company has hundreds of BBB complaints, and I should have checked them out better. I have sent a complaint form to the Attorney General in the state where they are based, but I am sure that will take time to process . I am keeping the account current as they are threatening my credit.
Additional information
Are companies who offer leases that obligate the leasee to payments totaling over $2,000 legally obligated to offer any right of recission document or period? Is a lease still valid if information is added after the signature of the leasee was obtained ? Whenever I communicate by letter with this company they always enclose a copy of my lease with the repy, and it has information which is not on my carbon copy that the sales person left. The added information does not change the amount of money obligated, but was nevertheless added after the document was signed. The sales representative totally misrepresented the agreement, but I assume that is irrelevent since I signed the contract. MERCHANTS TAKE HEED, IF YOU NEED CREDIT CARD PROCESSING SERVICES READ YOUR CONTRACT CAREFULLY OR HAVE YOUR ATTORNEY REVIEW IT. There are a lot of scams out there, and they seem to be getting away with it. Answers (1)
David Alexander Phipps
This attorney is licensed in California.
Posted about 1 year ago.
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"Are companies who offer leases that obligate the leasee to payments totaling over $2,000 legally obligated to offer any right of recission document or period?"
Generally, No. All such rights of cancellation are exceptions to the general rule. In my state there is one such law home solicitation sales contracts. Every state has one or two such laws regarding the rights to cancel in specific circumstances. I don't know the rules in your state, but I expect that none of the right to cancel laws apply to business owners renting credit card equipment. Even the broadest such law that I have ever heard of covers consumer goods, not commercial goods. "Is a lease still valid if information is added after the signature of the leasee was obtained?" Generally, Yes. The added provisions are not part of the contract if they are unauthorized additions, but the other parts of the contract are valid, provided that the added parts are not essential to the legal validity of the contract, such as price, identity of the parties, quantity. Whether they have the right to collect the non-insurance fee depends on whether you still have the obligation to maintian the insurance. If you had such an obligation, it doesn't go away just because you don't have possessison. You will need to review your contract to find out what your obligation is. So your options are keep paying or stop paying and take the credit hit and risk a lawsuit. There is always a possibility that the company would not sue you for the balance because of the cost of litigation. Also, they might not report the non-payment to the credit reporting agency. Sometimes creditors don't bother. And sometimes the cost of keeping up the payments is so high that it overshadows the credit damage. This answer must not be relied on as legal advice for the reasons posted here: http://davidphipps.com/docs/Disclaimer.doc . And I am not your attorney. David |
