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?

Get Legal Help Today

 Secured with SHA-256 Encryption

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 8 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.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption