Legal Question in Business Law in Massachusetts

Merchant Account Dispute From Non profit

In Sept my bank account was closed because my check book was stolen. My Merchant Services (Mastercard/Visa) company tried taking their monthly fee from this closed account. My bank told me all transaction from old checking account would automatically transfer to new account. In Dec. I contacted the company with the new account #. I've sent this company copies of my checking accounts, police reports etc. After 5 months they still have not updated the information and have been for the last 7 months trying to take my monthly fee from the closed account and charging me a $25.00 per month when they can't draw their fee from it. Since Dec. I've contacted them countless times, back in March they said everything was all set and I can go ahead and continue accepting credit cards, so we did. Still no money has been transferred to my new bank account. Now they are stating I owe them over $300. in fees and fines, even though we have processed close to $270. in credit cards. Bottom line - they say I still owe them $5. and according to my records they owe our nonprofit group $109. The rep has yelled at me on the phone, interupted me countless times when asking me a question, etc. Besides suing for $109. can I include any other damages.


Asked on 6/01/04, 10:53 am

1 Answer from Attorneys
Nance Lyons Law Office of Nance Lyons

Re: Merchant Account Dispute From Non profit

If Bank is MA bank contact the state Divisio of Banking - they regulate MA banks. If not, contact the office of the Attorney General Consumer law division, also the MA Office of Consumer protection. If your board has a lawyer on it, s/he could get involved and suggest a lawsuit with trable damages and attorney's fees will be filed under the MA Consumer Protection Law, Chapter 93A.

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Answered on 6/01/04, 11:35 am


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