First Data Merchant Services - confused :-/

[madcowbeads]

Hello!

In excess of 5 years ago, I signed up with BOSMS - who then farmed out the business to First Data Merchant Services.

Reviewing my costs led me to realise that my current set up (FDMS plus SagePay payment gateway) was a bit old fashioned and expensive, so I was considering cancelling. Particularly as only a very small % of customers were paying by credit card - mostly they seem to like Paypal, and if that's how people want to pay me, who am I to argue...

Anyway, then on 26th March, FDMS hiked my rates considerably.

This prompted me to cancel my account, which I did, in writing on 18th April. They acknowledged receipt of the letter and stated there was a £200 termination fee.

I rang on 8th May, and they stated that the contract I had was open ended and (quote) 'even if you had the account for 30 years and then cancelled, you still pay £200'

I pointed out that a) I was a small trader that had probably processed less than £200 in the previous year. b) They'd changed their terms and so surely I could cancel the contract.

They agreed on both points and said nothing was stopping me cancelling, but I owed them £200 termination fee. We couldn't agree, and the operator said that they would get someone more senior to call me.

No one called. Today (7th June) , I received my invoice with £200 termination fee.

I called again today and they said that there is no negotiation, small business, sole trader, whatever. I owe them £200.

I have requested a copy of the agreement, signed by me in order to check. I knew it was a 60 month contract, because I thought long and hard before signing. Even if I've been really stupid and really signed an 'open ended agreement' then I feel that this is an unfair contract - as I have no way of ending it, and FDMS can just hike up rates knowing that I have no choice but to take the charge, or cancel and pay £200?!

Anyone had any experience of this? I'm quite articulate and happy to go on a 'crusade' if necessary...

Georgie

 

[mhall]

We have had similar experiences in the past with other card people, their contracts are possibly the most one sided things I have ever seen. I am stubborn enough to see it to the bitter end but ended up with over a hundred nasty phone calls from our ex provider and countless demand notices for payment. I answered every letter with the same letter, they then sent me a letter telling me I was summonsed to appear at Derby Magistrates Court. When I got there, no such summons had ever been lodged with the court- it was just another scare tactic.

Even now, four years later, every few months I get a letter from another debt collection agent who has obviously bought the debt. They get the same response and silence reins for another few months. I still have their machine as it has never been collected.


I feel sure that, should it ever get to court, the contracts would be deemed as "unfair", and I would happily take that risk - they just won't actually take me to court. I wish they would.

 

[madcowbeads]

Thankyou for replying.

I agree. But now I need to get them to take me to court. I am fully prepared for hassle, 'for the greater good' and all that. There is a very bad smell about this I think.

It may be a scenario where knowing someone who is a tv journalist might be very useful... as a conventional approach is more difficult for the 'little people' (like me!)

Wish me luck!
Georgie

 

[Bonnieone]

Wouls love to hear how you are getting on with this as I have had the same conversation not 5 minutes ago. I got tricked into this contract 4 and a half years ago. Was sold the machine etc by some oily oik in the BOS Branch. Tried to cancel at 18 months and was told I was now locked into a 5 year contract and if I cancelled I would have to pay machine rental for 5 years and a £200 cancellation fee to First Data. Took it on the chin and beat myself up for my stupidity and decided to see it through to the end as it would be too expoensive to cancel.

As I approached the 5 year anniversary I decided to get my ducks in a row only to find the £200 cancellation fee applied to the Merchant Services contract no matter what? I was not told this when I took out the contact and nor was I told that the £200 would apply FOREVER when I was talked out of cancelling 3 years ago. Had I known I would have taken the view that I would take the hit early to save fees in the long run. Now I fiund I have been stitched up on fees for nearly 5 years AND lumbered with the cancellation fee I so diligently tried to avoid.

FUMING!

So would love to know how you are getting on and what tactics I can employ!

 

[madcowbeads]

Hiya -
Well, a couple of days after my OP I phoned them again and asked for a copy of the contract I had signed, including the clause about the £200 'forever' termination fee.

FDMS customer service chap was nice & friendly and kept saying he would send a copy of the t&cs. I stuck to my guns and said that I didn't want a copy of the t&cs I wanted a photocopy of the actual document with my signature on where I signed to agree to an open ended termination bonus.

He finally understood what I was saying and put me on hold. It felt like a long time, should've timed it(!) Anyway.. then he came back and said he would put it in the post that day. I reiterated that I required a copy of the signed original agreement. He said yes that was fine.

I got the distinct feeling that this was a fob off, but gut feeling means nothing!

Nothing has arrived in the post in over a month now. I know they have my address because I have the termination letter with the £200 debt showing on my statement.

I'm going to sit tight and wait until the debt collectors start. Then I'll go to court if summoned. Then they'll *have* to produce the documentation to prove the debt. If they do that, I'll pay it at that point in order to avoid a CCJ.

If they don't produce it, then I will win the payment fight I think - although in my mind, the fight really should be about one sided contracts.

I do have a plan for this but it's very much wait and see.

Good luck. If you're a member of the FSB I'm sure they would be interested to hear from you
Georgie

 

[madcowbeads]

Hi

Just to say that after my phonecall, when the operator said he would send a copy of the agreement that I signed. (It took me a while to explain this - he kept saying he'd send me a copy of the t&cs, which is, of course, not the same thing at all...)

Anyhow, heard nothing for a couple of months. I'd cancelled my DD the minute I got a sniff of this whole thing going sideways...

Then I got a letter confirming that my account was now closed and that the amount of £15 was outstanding. (It was outstanding, it was my DD for monthly fees, within the notice period)

SO - I carefully filed the letter, sent a cheque for £15 with a note saying this was in full and final settlement of account xyz

They cashed the cheque. Heard no more about it.

All I can guess is that they didn't have a copy of the t&Cs signed by me and I convinced them that I was serious about pursuit.

Who knows?

All sorted anyhow

Happy trades1
Georgie

 

[nb999]

Hi Georgie,

Did you also get FD to waive the 190 restocking fee. If so, how?

 

[madcowbeads]

Hiya,

I just did as detailed in the posts above.
There was no restocking fee in my agreement - I didn't have a POS machine

Best wishes
Georgie

 

[fathippy]

I have had similar problems with First Data, and I have to say I am gobsmacked by their (lack of) customer service. I am not sure they have any interest in long term business and just want to drain their customers for everything they have got - hence the 5 year contract otherwise everyone would leave after one!

I am currently having to go to the ombudsman to sort this out, so if any of you other two want me to chip in your stories whilst I am at it then PM me.

I did a review of my accounts in 2011 and asked for quotes for the lot (10ish counter top terminals) to move in one go. I picked FDMS through Payment sense as they were the most competitive. The first thing that struck me as odd was that the contracts were for five years. I spoke to the sales person and said I was unable to sign up for five as a lot of the businesses had only been around for 2 or 3 and I had no idea how long they would be around for. I also didnt want to be unable to merge companies or move business around just because of onerous card accounts.

After a week or so of standoff the salesperson relented and said that they would only use this clause to prevent me going to a competitor and would not use it in the event of liquidation or corporate activity. Stupidly I accepted this at face value, and signed up, even though technically nothing had been altered on the paperwork - BAD IDEA!

At the end of 2011 one of the small companies - the smallest by a mile - was struggling to make a go of it, so I spoke to the salesperson about this and he organised a collection of the terminal (which was almost brand new - had only been used about 10 times over the year). This was all quite quick.

About three months later I was contacted to ask why rental payments had not been made. I pointed out the terminal had been returned. I was then told that I had to pay 4 years worth up front. I said that this had not been the agreement. They said the paperwork said otherwise. I asked them to talk to the salesperson about this. They said he had no comment to make. I then asked for him to call me so I could ask him what happened. Unsurprisingly he never did, and didnt pick up my calls - I eventually got through to him using someone elses number and he denied ever having discussed this issue. This left me fuming and I suggested that if it went to court he might want to perjure himself on this point.

Since then I keep getting threatening letters even though the company is being wound up, and I have no recollection of signing any personal guarantees. I put this to them and they seemed to suggest that because I gave my home address and personal details this was enough ??!? Not only that but they have concocted a ridiculous cover story from the salesperson that the delay in signing the paperwork was due to me "trying to get a better rate" even though this is always the first thing you do before even starting the paperwork.

Sorry that this has dragged on a bit, but like the previous posters I am appalled by the behaviour to date, and am happy to put it all down for anyone to read.

As said before, if anyone else has any interesting stories please let me know as the more I can demonstrate to the ombudsman the better!

 

[sp3n]

Hi
Any help on the following would be greatly received.

I signed up to FDMS back in March 2010 for what i think was a 2 year contract, when calling them to say i no longer required the service because of their ridiculous rate increase (which were increased back in March 2012) so i wished to close my account, as above they said £200 fee please, i told them i was no longer in a contract with them and was not going to pay it, he said i was now in a 30 day rolling contract and the fee still applies. I asked for a copy of the contract, which i have now got and yes it does mention a termination fee of £200. Surely they cannot charge this as the original contract has ceased. Also they have increased my cc rates which should allow you to get out of any contract???