Complaint Review: USA Card Services

When a Contract Can Be Canceled
So what happens when you want or need to break a written contract? Whether you've found the arrangement you agreed to wasn't such a great deal after all, or you simply can't afford to make the payments and want out, the facts are pretty much the same: you signed a contract and are now obligated to fulfill your end of the bargain. There are, however, several recourses you may have.

The Federal Trade Commission, the Truth in Lending Act, and most state laws give consumers a right to reconsider certain contracts within three days of signing. If you were not told of this right, you may have even longer to cancel it. Cancelable contracts include:

Door-to-door sales of over $25
Sales of over $25 if it was made someplace other than the seller's normal place of business, such as exhibits, fairs, and trade shows
Home equity loans and lines of credit
Timeshares
Health club memberships
Dating services
Credit repair services
Dance lessons
Camping memberships
Some purchases are exempt from this cooling-off period, so be particularly sure you want to go ahead with them before signing anything. These include car loans and leases, real estate, insurance products, and securities.

Still, even if the time frame has lapsed or it didn't apply to your contract, you may have other options to end the deal. There are legal ways to break a contract, called "contract defenses." They are:

Duress if you were forced against your will to sign the contract
Incapacity if you lacked the mental capacity to understand the contract
Fraud and misrepresentation if the seller deliberately misstated the facts about the product or service
Minors if you were under the age of 18 when you signed the contract (in most states)
Unconsionability if the terms of the contract are outrageous, or the bargaining process was thoroughly unfair
How to Cancel a Contract
When canceling a contract, be sure to do it the right way:

Sign and date the cancellation form that should have come with the contract. If the seller did not give you one, write your own (just a simple letter stating your wish to cancel will suffice).
Make sure the cancellation form or letter is post-marked before midnight of the third business day after the contract date.
Mail it to the address given for cancellation.
Keep a copy of the cancellation form or letter for your records.
When a Contract Can't be Canceled
If the contract cannot be canceled, you are bound by the terms of the agreement. For example, you may be held responsible for the remaining months' cost of a health club membership or apartment rental lease. Break a car lease or a cell phone contract and you could be faced with a stiff financial penalty. It all comes down to the contract that you originally signed the details will be in there.

If you fail to pay according to the terms of the contract, the original company may send the unpaid balance or penalty to a third-party collector, or even sue you for what you owe. In either case, credit damage is both highly likely and severe.

The moral of the story is that all contracts should be entered carefully and taken very seriously they can only be canceled if certain conditions are met. If you have trouble meeting the terms of a non-cancelable contract, make every attempt to work it out with the company before you miss a payment.

I received my third letter from A-1 Leasing's Attorney. This time he states that I should get an attorney in Michigan or contact the company and resolve the issue. My problem is I was told I would be making money with my website which I did not. Without income coming in I do not have enough income to afford monthly payments. The payments I did make caused my bank account to be overdrawn every month. I was struggling because I really wanted this business to be the real thing.

I have sent out a total of 4 letters and no one has told me my contract was cancel and no one asked me to return the equipment I returned the equipment using my own judgement. The only thing I have received are threat letters from the A-1 Leasing's attorney.

I plan to contact A-1 Leasing and try to figure out where this is going when I have to money to pay. Even if I have to go to court I still don't have any money.

I have been contact again by A-1 Leasing's attorney stating that I owe 8,056.16 When I discontinued payments in November it was only a little over 3,000 because I called to get the amount. Anyway how does the amount I owe go from a little over 3,000 to 8,056.16 in four (4) months.