Consumer Law, Warranties Merchant Account Equipment Contract

[braden]

Hi,

I signed up for a merchant account last year. The contract was only a year. I cancelled that this month. Along with my merchant account, I signed a contract to lease the equipment. The lease for the equipment was 24 months (one year longer than the merchant account). Since I no longer have my merchant account, I do not need my equipment anymore.

I tried contacting the company that has my lease and was never able to get through. I left numerous messages and they called back once (which was a recording stating to call them back). I received a letter in the mail today stating that my contract is non-cancelable but based on my request; they will accept the buyout amount of $922.90. I find that this is outrageous! I have had the equipment for a year and the monthly amount due is only $19.95.

I feel that I should owe only $239.40 as I only have a year left on my lease. They then sent another letter stating a buyout amount of $820.39 and requiring me to send my equipment back. According to my contract, the equipment is mine once the contract is paid for.

Is there anyway that I can get away with only paying $239.40? The company is based in Colorado or Arizona but my business is based in Kansas.

Thanks!

Braden

 

[Michael Wechsler]

I'm sorry to hear about your problem. Without seeing the contract it is impossible to help you find remedies. If your obligation is $20 a month then you are correct - the maximum you owe is $240 according to the simple math. But how and why did the company come up with $922 and $820 - what piece am I missing here?