Rental nightmare
Leasing can be a very frustrating experience. I used to call a businessman with three different leases, and he was not even sure about their use. After checking his business check account statement, I was able to help him determine who the lease was and what they were attached to.
It turns out that he has a terminal lease, another separate rental mat, and a third lease of $89 a month, he has paid for six years, not even sure what it is. This particular lease has been going on for five years, but he still has not succeeded in getting the rental company to stop withdrawing money from his checking account.
You ask, how is this possible?
This is a good question and you will be able to answer this question after reading this article.
Your processor is not your rental company
Many merchants are surprised to find that credit card processors and rental companies with lease contracts are two completely different business entities of the merchant logo.
This means you can switch experts at any time [except that your card processor has locked in one of the manipulative "early termination fees" contracts I often object to] and it has no effect on your credit card terminal. Your new processor simply downloads the new software to an existing terminal.
Why is the lease difficult to get rid of
When signing a merchant agreement [especially for the first time], merchants will not stop and consider that the lease they sign is not cancelable, with very few exceptions. This means that you will pay the full amount unless you breach the contract or negotiate a problem.
why?
One reason is that the leasing company has paid up to $1,000 in prepaid commissions to salespeople who signed the lease with you. Therefore, they will definitely recover the fees they paid. But it goes beyond this.
Another reason why it is so difficult is because they recorded your voice before agreeing to the terms of the contract by phone before they can get the device.
I hate the lease. Yes, I made a good prepaid commission. But if I do this, I will also force my merchant to pay up to 10 times the value of the device when the lease expires. Forget it. I also want to be my customer friend in the next 5 years.
Eternal lease
Not only do you have to pay the full term of the lease agreement, but most leases will never end unless you stop the lease. Even after the initial term of the lease Expired from
.
How could this be?
simple.
The contract usually indicates that if it is valid for the ____ years, it will remain unchanged and continue beyond that until either party stops it. Typically, they insert a clause that stipulates that it will automatically renew in one-year increments unless the merchant stops in writing at least 30 days before the due date. This means that the contract will be permanently updated until the merchant ends it.
This means that unless you have read the contract and wrote it down at the end of the contract, you may end up being "permanently bound". [How ugly the way to do business].
How to legally take a lease
To end your lease, you need to know the terms and exact content of the contract. Here are 4 ways to deal with most of the leases I have encountered, designed to save you from further obligations - from "good" to "worst".
- Buy out $1.00 . This means that when the lease expires, you can get it by paying $1.00, and you now have these devices. In terms of leasing, this is the fairest [except for having it directly, some rare contracts allow]
- Fair market value This means that at the end of the lease period, the leasing company will determine the current market value and ask you to pay to retain the equipment and terminate the lease.
- Return it . I think this is particularly disgusting. After paying 10 times the machine value during 4 or 5 years, the rental company asks you to return the equipment to them, otherwise they will continue to debit your checking account - "permanent".
- Lease buyout This is where they want you to pay the remaining months of the contract and then the lease ends. I have listed this as the worst, but if you just started leasing, it's just the worst, which means it can cost thousands of dollars, and - again - up to 10 x & #39; terminal value of s [or many].
In summary
With the options listed above, there is no doubt that they make sure to record your voice over the phone and agree to the terms that are stated before you get the device. Unfortunately, they did not discriminate against all the facts. If they do, you may not experience it.
Basically, they will only make you verbally promise an "irrevocable" lease, at " X "amount is" X "The number of months.
My advice? If I am obligated to rent a device, I will immediately sign the contract and do the following:
- Understand the terms that ended it...that is, $1 buyout? , fair market value? , return equipment? and many more
- I will find the exact month when the lease plan expires - and
- I will take my calendar out and mark it for 60 days before the due date, after which I will -
- Send a certified letter stating that I would like to retire the lease before the due date
Note: What most merchants don't understand is that in most cases, the lease won't end unless you take action. This means that even if it is called a "36 month" or "5 year" lease, the timeline simply states when you are eligible to end it - not when it ends.
Just writing about how these companies do business is almost enough to make me excited. When renting credit card equipment, you should be cautious!
Orignal From: How to get rid of the lease of credit card equipment
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