Legal Question in Business Law in Illinois

To whom it may concern

I am one of the owners of Bankcard Services. I am looking for some legal advice on a situation that my business has encountered. A merchant leased 2 credit card

processing machines(terminals)on 10/11/2012 through my company. This requires a

verbal conversation between the merchant and the lease company. Once this was

completed, the merchant was now able to use his terminals to accept credit cards

from his customers on purchases. The merchant used his account for over 3 months.

After the 3 month period, merchant closed his bank account, which resulted in the

lease payment defaulting. Once the payment was defaulted, the lease company deducted $2424.65 from our bank account. The merchant still has the 2 terminals in his possesion. I have in my possesion the paperwork the merchant signed.

I do not understand how the lease company is holding me responsible for the

merchants obligation since he signed the lease agreement.

The way I see it the merchant should be arrested for deceptive practice, fraud,

forgery, electronic wire fraud, and receiving stolen property.

Your thoughts on this matter would be appreciated. I am not sure if I would require legal representation, or if I am able to go to the local police station to press charges.


Asked on 1/16/13, 8:38 pm

1 Answer from Attorneys
Frank Johns Johns Marino LLP

I suspect your attorney did not review the agreement before it was executed. In my experience, businesses do not know what they are getting into with these lease agreements and only learn the true nature of their liability exposure when things go badly. Your recourse will all turn on the nature of the lease agreement and your dealings with the leasing company. More facts would be needed to adequately respond to your query and you likely will need to talk to an attorney about how to proceed.

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Answered on 1/17/13, 10:16 am


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