FROM THE BEGINNING

In OCTOBER of 1999 I decided to go forward with obtaining a credit card terminal in order to process credit cards through an e-commerce gift site I was creating. It was my uncontained enthusiasm and immaturity that convinced myself this was the right move. You have to remember, this was before the days of Paypal, or the widespread use of really any sort of credit card processing. I wanted to play with the big boys, so I took that step.

I contacted E-Commerce Exchange (www.ecx.com). How I came to hear about them I do not remember. A rep named Rick Clark (I will NEVER forget that name, curse it) called me back and we talked on the phone about what I wanted to do. He seemed like a very nice person, and told me all my options.

The option we settled on was a "lease to own" of a Nurit 2085 (which I still own) at $69.95 a month for the lease from their "sister company" LEASECOMM. Also, through their other "sister company" IPayment I was to be charged $25 a month for the ability to process transactions, and then a set percent amount per transaction and so on, through CreditCards.com (no longer the same business). It was a 2 year (24 month) lease and at the end of the lease I could buy out the terminal for fair market value. Rick said that fair market value at the end of the lease was $0.00 and that at the end of the 2 years I would owe nothing and have to do nothing.

Rick overnighted me the contract. It was greek to me. I called him and had him walk me through the contract. I could not find where it said the fair market value was $0.00 at the end of 24 months, so he emailed that to me (I still have that email). My dad smartly told me to get that in writing, at least in email, so I did. Rick had no problem, as I would find out later, flat out lying to me to make the sale.

Everything to this point is fine. They begin automatic drafting of my checking account, the $69.95 and the $25.00. Now this is where it begins to be my stupidity that didn't prevent this, but never-the-less does not give them free reign to draft my account. They began drafting TWO (2) payments of $25. I did not notice it, for one because I am a horrible accountant, and for another because at the time my online checking showed a duplicate transaction for each transaction made. In reality their were 4 x $25 because of the two duplicates, but they were scattered and I didn't catch it. I am the type of person who (at that time, not any more) would get his bank statement and just put it in a pile. Trust me I have learned, expensive lesson but I have learned.

With that said, I continue to try to grow the business. I am basically failing miserably, and over the years it gets put to the side. I knew I was under contract, so I did not call to break the terminal lease.

Approximately 30 months after I signed the lease (early 2002), I notice my account was still being drafted the $69.99!!! I call up and question it, and they tell me I was supposed to call them up to buy the terminal out a month before my lease was up. THIS WAS NOT WHAT RICK TOLD ME. This was also poorly written into the contract, but in actually did not even apply to me. I have the contract right here and the wording is such that it wouldn't apply to me. At this point I have been charged an additiona $400 or so dollars for the terminal that should have been mine free and clear by now. The total I have paid for the terminal alone is about $2000 over the 2 year period. Basically, I was ripped off. Actually, raped is a better word in this case.

To add insult to injury, they allege the fair market value is still some $100+ dollars. I convince them to let me call it even, because of the lying of Rick. Who, by the way, no longer worked there (left about a month after I signed up) and who they say did not represent them and could not have said what he said. I told them I had the email to prove it, they said that didn't matter. Anyway, we called it even, and I felt lied to, abused, intimidated and violated, in that they in my heart and mind stole money from me, and there was nothing I could apparently do about it.

Move foward about 3 months. At this point I am so angry with myself. I am a failed business man and the worst possible accountant. It has cost me and my dad alot of money, yet this entire time my dad has been as cool as someone could be. He layed into me a few times verbally, but nothing I didn't absolutely deserve. With that said, I decided to make it my goal to become better at balancing the books and keeping good financial records. I started going back through my old statements and files and this is when I noticed the double drafting of the account for the $25.

I immediately called up E-Commerce Exchange and asked them what the heck was going on. They did some research, and apparently they created a DUPLICATE account for my one contract!!! I was told to type of a formal letter stating that I wanted to close account #xxxx, as that was the duplicate account. I was told that was the first step to getting my money back. A representative there named "Brandi" admitted that it was a "clerical error" on her part, and that she would pass this up to get my $825 (33 months x $25/month) back to me. She said they had a policy of only giving back the last 3 months prior to when it was caught, and that since it took me 33 months to catch it they would only give me back $75. But she said that was not fair, and said she would go to bat for me to get as much as she could. I made it clear to her that I wanted it all back, because it was never theirs to begin with. She said she would try. This was the middle of 2002. She said it would take two weeks.

A month later I call up, and she is not there. Another lady tells me that it went up to the review "board" and they denied any and all of a refund. I explained to her the situation and she told me once again she agreed with me, that this was their error, and that she would work on getting my money back. I never heard from her again.

Several months go by. I am full time school, ROTC, and work. I started going through my records and reading up some more about this situation. I realize that I have seriously been wronged and that it is something ECX needs to make right. I once again begin to take steps to get my money back.

I call up a little over a month ago, and this time apparently ECX and IPayment are now doing customer service in the same building. I talk to the person who supposidly makes the decisions, Scott, and explaint to him the situation from the beginning, exactly how I have stated it here. He tells me he will look into it and get back to me.

A week goes by. No phone call. I call him back and say, "This is Matt, we talked, the other week..." He responds, "Yeah, where did we leave off?" I am floored. I bring him up to speed that we left off that he was going to check on this and get back to me. He literally responds, "Yeah, ok can I call you back. We need to go pull an old file since there are no notes of this in the system." I tell him that I remember specifically Brandi and the other girl telling me they were noting everything. I find it EXTREMELY fishy that they now do not have notes of my conversations, and they do not even have record of the duplicate account they "accidently" created. How convenient.

I tell him fine, to call me back on Friday no matter what, just to update me. I explain to him everything about Rick, how I have been lied to, and have never had one phone call returned (except when I was a prospect of course). He says not a problem, and he would be happy to call me back.

Two more weeks go by. You have to understand I work from 8 or 9AM, come home at 1 or 2PM, and I'm out the door at 3 or 4PM and work at my second job until 10 or 11PM. During that 2 or so hours, I'm driving home, taking the dog out, sometimes eating lunch, feeding the dog, getting changed, and driving back to work. This is not every day, but nearly every day. The days I don't work like this are the ones that I spend calling Scott, only to have him either not there, busy, voicemail, or tell me he'll call me back.

So, two weeks ago I talked with Scott one last time. He informed me that they were ready to offer me the last 3 months, that was their "policy", and that is what his manager said he could say. I asked if his manager was there, but of course she was not. I said, "Scott, that is not going to work. I know full well that that is your policy, but I do not care. I have been very calm throughout this entire process, been very patient, and frankly at this point I am ready, willing, and able to do what I need to do to get back the money that E-Commerce Exchange ILLEGALLY, albeit accidently, took from my account. Scott, where I come from that's called stealing. I did not want it to come to this, but this would be an open/shut case in front of any small claims court judge, and I am prepared to do that if it comes to that. I do not want to be mean here Scott, but that money was NEVER E-COmmerce Exchanges, and they took it from me. I want it back. ECX created a DUPLICATE account based upon ONE CONTRACT I signed Scott, I signed ONE CONTRACT. Therefore, your 'policy' does not apply because I never signed the second contract for the duplicate account. It was an addmitted 'clerical error' on the part of E-Commerce Exchange that the second account was created, and I want ECX to maket his right." Scott replies, "Ok Matt, I will pass this on to my manager, about the one contract and what not. I will call you back."

Now, two weeks later, I am still busting my *** at work and today I had 3 hours between jobs. I call him up, and of course he is not available. I leave a voicemail for him to call me back ASAP, and I leave the time. I just got home from Best Buy at about 11PM and there was a message from him on my answering machine from I think around 5PM, asking me to call him back.

This next phone conversation I will record, as I already have the device hooked up and ready to go. I will outline my patience, how long I have waited for this to be resolved, I will ask him if he agrees that I have been kind and willing to let them fix this on their end. At that point I will ask him for his full name, his boss's full name, and his boss's boss's full name. I will notify him that I will be serving him with the small claims court paperwork, and that I hope it's obvious to him that it will cost ECX alot more then $825 to defend this in court, especially since it is undefendable.

That is where we are at now. My apologies for the length of this. Funny thing is I know I have probably left some details out, but this is to the best of my knowledge after working a 13 hour day.

Regards,
Matt

 

Many times small claims court threats wont do much because you dont need a lawyer in small claims. Often though, sending a letter that you are bumping the court case to Common Pleas - which in most cases requires the presence of a lawyer -- will scare a lot of companies into fishing out you rmoney rather than letting a lawyer eat it all up. $800 is about 2-3hrs of representation and legal counsel anymore -- if that.

At the very least I would NOT threaten small claims. I would go Common Pleas at the very least, see what their next move is, and decide whether you can arbitrate it among the parties or if you decide its not worth getting a lawyer if they decide it is, you can drop the case and walk away. At least you are forcing their hand as they have to respond to the suit and get a lawyer if they intend to fight it.

Im NOT a lawyer though. I may be giving horrible advice. A lawyer needs to fix whatever Ive said wrong.

 

"They claim their policy is they are responsible for the last 3 months, and I claim I don't care what their policy is, that the law, goodwill and common sense superceeds their policy. "

you should claim that the law can only prosecute you for killing them if they catch you. . . . "

 

bump.

Any other opinions after reading the entire details of the situation?

-Matt