Legal Question in Civil Litigation in Michigan

Lease Contract Question

So basically I thought trying to start my own business would be a good idea. As a result, I did probably the stupidest thing ever. I signed up with USA Card Services and Ladco Leasing, and now I am basically leasing a credit card terminal that costs like $300 for $108 a month for 4 years. I knew it was stupid after the initial excitement died down and I actually read the contract better. I thought I was getting more than I did. Anyway, I sent a letter a couple of years into it saying that I was having financial problems and I asked them to cancel the contract, I also sent them what I called in the letter and wrote on the check a $500 cancellation fee, hoping to show that I was not completely trying to skip out. Then they cashed the check, so I figured they accepted, I was wrong. My question is, do I have anything there? I was never late on payment for the lease or anything I was completely caught up and did not owe a payment at that time, would me stating that it is a cancellation fee and them taking the money acceptable as a contract? I assume the answer is no because I suspect they know more about the law than me, but I just want to make sure. By the way I am in Michigan, they are in California.


Asked on 6/27/07, 2:34 pm

1 Answer from Attorneys
Audra Arndt Audra A. Arndt & Associates, PLLC

Re: Lease Contract Question

If you wrote a letter asking/requesting to cancel and paid the cancellation fee, and they accepted and cashed your check, then that is considered them accepting your cancellation and you should not have to pay beyond the cancellation.

Have you talked to anyone about the contract, or put anything else in writing? Keep track of who you talk to. You should send them a letter indicating that you canceled the contract on X date, paid the cancellation fee and provide them with a copy of the check that they cashed. If they still don't terminate your contract and/or are trying to claim you owe them money, contact a lawyer.

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Answered on 6/27/07, 9:49 pm


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