What to do if I canceled my merchant account after the initial contract term was up but the processing company says that there was an automatic renewal since I didn’t contact them in writing?
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What to do if I canceled my merchant account after the initial contract term was up but the processing company says that there was an automatic renewal since I didn’t contact them in writing?
Is this binding? Since the orginal company sold to another company, is the orginal contract binding with the second company? They have now stopped responding to my calls and charged my account $650. We have asked for several documents but no luck. What can I do?
Asked on April 10, 2013 under Business Law, Oregon
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
First, the original contract is most likely still binding, if the original company was purchased by another. Second, if the contract/agreement said that any intention to not renew had to be presented or provided in writing, that condition or term is legal and enforceable; therefore, if there was such a term in the contract--though ONLY if there was such a term in the contract; the company cannot add new or different terms than were in the agreement--then yes, the failure to provide written notice could have resulted in automatic renewal.
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