Legal Question in Business Law in California

Re: merchant credit card fees

What does your contract with the company say about this? Chances are that it expressly allows for such a fee if you cancel before the end of the contract term. If so, charging you the fee is perfectly legal.

The early cancellation itself is not something that should end up on your credit report. A delay in paying the fee, however, would probably be fair game.

Re: merchant credit card fees

What does your contract with the company say about this? Chances are that it expressly allows for such a fee if you cancel before the end of the contract term. If so, charging you the fee is perfectly legal.

The early cancellation itself is not something that should end up on your credit report. A delay in paying the fee, however, would probably be fair game.

Re: merchant credit card fees

You signed a contract; you don't get to ignore or change its terms just 'because'. If the contract provides for an early termination penalty, you should have thought that through before canceling the contract. Only if that term could be attacked legally for some reason, could you win in a lawsuit they bring. You'd pay substantial legal fees to fight this. Your credit won't be affected, as long as you pay the fee timely. If you don't, they can ding your credit. I suggest you negotiate a resolution to avoid being sued.