Can Credit card leasing Companies report to the credit bureaus?
I signed up with a company to accept credit cards for my small business. The company I Choose to do business with totally misrepresented the amount of fees to be taken out of my account. I have since cancelled with them. However, I signed a 48 month lease with the company who provided the terminal equipment. They have now stated taking the fees out of my checking account on different days of the month which has caused my account be be overdrawn many times. I am a small business just starting and do not always have the money in my account. My question is – If I return the equipment and refuse to pay the additional terms of my lease, can they report that to the credit bureaus. I can’t afford that either.
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Unfortunately, if you signed a lease for the equipment as well as the service you are bound by the contract.
Unless you can prove that they misrepresented their services or did not meet their contractual agreement, then you are stuck with the debt.
Check your contract to see if there is a time limit as to when you can cancel your agreement.
You can cancel your checking account, but must make payments to a legal firm to hold in escrow until the dispute is settled. This will prevent them from further legal action until a settlement is reached.
Yes they can report to the bureaus but like anything else that is reported you can dispute it. If indeed the fees were misrepresented then you may have a way out of the lease that they are trying to hold you to. I would suggest trying to get out of the lease with the company in such a way that they let you out without reporting it as broken lease with owed money. If you cannot come to an agreeable termination with this company then I suggest you dispute any derogatory information they report to the bureaus. The way in which you dispute this information will greatly affect the likelihood of being able to have it removed so do some home work on how this is done. The website below has good information on disputing items to the bureaus.