The scrutiny credit card companies and those that work with them are facing from those in power has not come to an end. Recently, Washington state Attorney General Rob McKenna filed a lawsuit against Merchant Processing Inc. The reason? The lawsuit alleges that Merchant Processing Inc, which is based in Beaverton, Oregon, has used deceptive tactics in order to sell its services to small business owners throughout the state.
The suit names Merchant Processing Inc. as well as its affiliates, Direct Merchant Processing of Tigard and Vequity Financial Group of Beaverton. The suit claims that Merchant Processing used deceptive tactics by promising the businesses would save money and would receive their payments more quickly if they switch from their current processor to their company.
The suit alleges that businesses actually had to pay higher fees when the switched to the services of Merchant Processing Inc. In addition, the suit alleges that companies did not receive their payments within the time frame that had been promised and they were unable to terminate their lease with Merchant Processing Inc. without having to pay high penalties.
According to McKenna, the Federal Trade Commission also sued Merchant Processing Inc. and its affiliates in Oregon. The reason behind the lawsuit was that the company violated the Federal Trade Commission Act. The Federal Trade Commission was able to successfully place a temporary straining order that froze all of the assets of the company and its affiliates.
Its bad enough that credit card holders already have to worry about thieves and con artists, but it is truly sad to me when cardholders and business owners need to watch their backs when it comes to dealing with supposedly reputable credit card companies. The attempt by credit card companies to mislead consumers in order to trick them into using a card is a sad state of affairs. Now, according to what is being alleged by this lawsuit, businesses also need to watch how they are treated by credit card companies and related companies.
This story just goes to prove that, if you are a business owner, it is imperative that you do your research and only do business with those companies that can back their claims and that have a high level of customer satisfaction. Doing your homework before signing a contract that can be difficult to shake will be well worth it and will save you from a number of headaches down the road.