I was approached by sales people offering to lend business funds in exchange for switching to their visa mastercard proccessor, First American Payment Systems.
All new equipment including pin pad machine to facilitate debit card processing was promised at no charge. The loan was to be paid back out of credit card business futures at a rate of 22% of all charges processed. A loan of $10,000 was made and a fee of $3,999.00 was charged for the loan. This in August of 2007.
The loan amount was determined by the lender based on the last three months of statements from my prior processor.
The new processing arrangement was promised to me to save me several hundred monthly in fees.
The new pin pad machine failed to work from the installation time for seven months causing me to be charged substantially higher rates on debit card usage. Many time consuming events on the telephone were exhausted to finally work this out. When they finally got me equipment that functioned they charged me over $400.00 dollars (came right out of my bank account) for equipment fees. Finally after returning the faulty equipment they charged me restocking charges, etc.
First American Payment Systems refused to honor several valid and approved transactions on several different occasions because they were keyed in type transactions. Also using another excuse that a particular card holder had reached his monthly limit with First American Payment Systems even though his credit line was ok and he was able to use his card at other vendors. This caused me great difficulty in getting paid. Who could have known. My prior processor of three years had never refused such transactions.
When business slowed down substantially due to the economy First American Payment Systems suspended my usage and I was no longer able to due credit card business. They stated that if I did not process a certain amount of charges during a certain time period that they suspend.
That is when Advanceme Inc. out of Cobb County Georgia went to work on me. They tried harassing me and calling me many times per day and would not help rectify the situation with FAPS. Even though FAPS was their partner in this.
I lost thousands of dollars in business as I could not take credit card customers.All the while Advanceme demanding to get paid. And I could not switch processors as I had this agreement with Advanceme to use theirs.
Ultimately I lost my business and now Advanceme Inc. is suing me for $9,600.00 and FAPS is sending me dun letters for additional charges.
I am a single father with sole custody of a child and with no help. I feel tricked and swindled and don't know what to do about this lawsuit.
canoga park, California