Contract ends, billing continues.

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  1. #1
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    Contract ends, billing continues.

    Hi, I have a business that leased a copier for 4 years under contract. Prior to the contract end, we notifies the company by phone that they could pick up the copier because we had already signed with a new company before their contract ended although we continued to pay through the contract end date. The company is still billing us saying that we did not send an official letter saying that we wanted to end the lease. The company said that according to the contract, we have to send them a letter in order to end the service. Is this legal? The actual contract ended. If we did not sign another contract with them, are we obligated to continue payments bar a letter. Thank you for any advice you can give. Julie


  2. #2
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    What does the contract state with respect to what happens if you don't cancel? Does it continue month to month, year to year?
    I am not a lawyer, this is not legal advice.

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    Thanks for your help. The contract states it renews on a month to month basis. With this in mind, I did send an official notice of our cancellation at the end of November. But again we just received another billing statement charging us for January 2012 as well as the past due payments. We had contacted the company by telephone numerous time since May 2011 informing them we would not be renewing and that if they wanted, they could pick up the copier prior to lease end because we signed a new contract commencing in June 2011. The sales rep even phoned us several times to renew the contract and we informed him of our intentions as well. Never once was it mentioned to us that we should send a letter with our intent of not renewing the lease or how to proceed. I understand that I should have read the small print on the contract, but they used our ignorance to capitalize on the situation. How should I proceed at this point? Should I dispute the charges? Thanks again.

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    Yes I believe you should dispute all the charges although in the end this may end in some type of litigation (possibly in small claims court depending on the amount). You can also contact the BBB and post reviews online about the company on websites like ripoffreport.com.
    I am not a lawyer, this is not legal advice.

  5. #5
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    I appreciate your advice and I'm willing to see it all the way through! I already posted my complaint on ripoffreport.com. After performing a search, I found numerous complaints...many with the same issue as me. By the way, this poorly run company is KONICA MINOLTA based in Chicago, IL. Thanks again!!

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    You can dispute the payments but unfortunately many companies have this written in their contracts. You see this a lot with companies that are set-up on recurring revenue models ie. support or annual maintenance agreements. The contract probably states 30-60 day notification of your intent to cancel the agreement. If its in the contract its pretty hard to dispute.

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    This is a common ploy in office equipment contracts. Once the initial user ends their usage of a machine, rarely does another business want to lease a used machine of unknown quality.


 

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