How To Get Out Of A Lease On Credit Card Equipment

A Leasing Nightmare

Leasing can be a very frustrating experience.

This particular lease had expired after 5 years, but he was still unsuccessful getting the leasing company to stop taking money out of his checking account.

Your Processor Is Not Your Leasing Company

Many merchants are surprised to learn that the credit card processor and the leasing company which owns the leasing contract a merchant signs are two entirely different business entities.

Why Leases Are So Hard To Get Out Of

One reason is because the leasing company has already paid an upfront commission, which can be as high as $1,000+, to the salesperson who got you to sign a lease.I hate leases. The Eternal Lease

Not only will you pay for the full term you agreed on for your lease, but the majority of leases will never end unless YOU STOP THEM. This is true even after the initial term of the lease has expired.

How To Legally Get Out Of The Lease

1. A $1.00 buyout. This means when the lease expires you can get out of it by paying $1.00 and you now own the equipment. As far as leases go this is the one that's the most fair (other than outright owning it, which a few rare contracts allow)

2. Fair market value This is saying that at the end of the lease term the leasing company will determine the current market value and require you to pay it to keep the equipment and end the lease.

3. Lease buyout This is where they want you to pay for the remaining months of the contract and then the lease is over.

With options like those listed above it's no wonder they make sure to get your voice on record over the phone agreeing to the terms they state before you get the equipment. Unfortunately, they don't disclose all the facts. If they did you probably wouldn't go through with it.

Basically, they only get you to verbally commit to a "non-cancellable" lease, at "x" amount of dollars, for "x" number of months.

My suggestion? If I was obligated to an equipment lease I would immediately get out my contract and do the following:

• Understand the terms of ending it... i.e., $1 buyout?, fair market value?, return equipment? etc.

• I would find the exact month the lease was scheduled to expire - and

• I'd get out my calendar and mark it for 60 days before the expiration date, upon which time I'd -

• Send a certified letter stating that I want out of the lease on the expiration date