Consumer complaint received 2024-09-14 00:00:00
Product: Debt collection — Other debt
Issue: Attempts to collect debt not owed — Debt is not yours
Company: FISERV FINXACT CORE
State: MD

Complaint narrative:
I sold my business/corporation XX/XX/XXXX after 37 years of practice. The new owner acquired the company including the Tax ID. A merchant account had been in place through XXXX XXXX  and their merchant partner, First Data/Clover , that provided/leased the credit card machine since XXXX. When the credit card machine stopped working, a replacement machine was sent. XXXX nor First Data informed me that with the replacement machine, I was automatically signed up for a new 4 year contract. The new owner of the company continued to use the existing machine until XX/XX/XXXX. XXXX set up a new merchant account with the new owner, and provided her with another credit card machine. My understanding was since I no longer owned the corporation and everything transferred to the new owner, I was no longer responsible for any equipment. I was never informed that the company stopped using the existing credit card machine and began using a new machine attached to a new merchant account with XXXX. The new owner unknowingly paid monthly charges for 2 merchant accounts through XX/XX/XXXX. 

Sometime in XXXX, the companys XXXX business account was compromised and XXXX changed the account number. When First Data tried to put through the XXXX payment, it could not be processed. I received a letter at my home dated XX/XX/XXXX from First Data stating I owed {$49.00} for the leased credit card machine attached to the old merchant account. When I called to follow-up, I informed First Data that I no longer owned the business and was not liable for any payment. First Data said the contract was non-cancellable and I was liable. I requested and received a copy of the contract. Upon reviewing the contract dated XX/XX/XXXX, there was an electronic signature for me and the personal guaranty was Xd out in red. As stated, I did not realize that requesting a replacement machine automatically entered the company into a new 4 year lease contract. 

On XX/XX/XXXX, I reached out to XXXX bank and had a conference call with XXXX, First Data, and the new owner of the company. First Data informed me that the only way I could get out of the contract would be to pay it off for the time left on the lease contract ( {$530.00} ) and the outstanding balance ( {$57.00} ). I explained that the contract is under the corporations Tax ID and not my personal SS #. First Data says my SS # guarantees this lease agreement. I also pointed out that the personal guaranty is Xd out on the contract that was dated XX/XX/XXXX and received from First Data. First Data says I am still liable. I also explained that neither me or the new owner was given clear directions re : use and return of equipment. First Data on the initial conference call confirmed that the old equipment in question was returned. Later in the process, it was determined that the credit card machine was not returned. I had one of the company employees search the office and she located another credit card machine. I picked up the Clover machine and confirmed it had the serial number that was covered by the contract in question. I still have the Clover credit card machine in my procession. 

The new owner and I both went into a XXXX branch office as we were advised in order to smoothly make the transfer in ownership and get the bank accounts turned over to the new owner. There were mistakes made by XXXX, First Data, and the company ( because the new owner and I were not given correct information ). 

I have had numerous phone calls with XXXX, First Data, and the new owner trying to resolve this problem. Through searching for a resolution, I was informed by First Data that the lease contract is non-cancellable. I was also led to believe that I should have signed a First Data transfer form for the new owner. I later discovered that even if this transfer form was signed, I would still be liable. I kept getting referred back and forth to the First Data customer service and the collections departments ; and XXXX  business relationship manager, XXXX merchant services, and the XXXX executive client relations department. I was intimidated by First Datas threats to damage my personal credit and had to repeatedly go over the same information with their agents. I felt that First Data was bullying me. 

At the end of XXXX, after this issue had escalated to the executive levels of XXXX and First Data, XXXX informed me that there was nothing more they could do and I would have to work it out with First Data. I updated the new owner and she asked for a bill to review before considering payment. I was told by First Data that I could not be sent a bill because the account was already in collections. I was given an email address : XXXX to request the bill and the email address did not work. 

On XX/XX/XXXX I received a call from XXXX XXXX XXXX ( a collections agency ). They informed me that I now owe {$710.00}. I went over the entire issue with the agent and again requested a bill. I informed the agent I have never received a bill and I no longer own the practice. I confirmed that the current owner also had not received a bill. I explained that I can not be expected to send {$710.00} to any company without a bill. There is too much fraud going on and I can not pay without a bill. The agent said she would follow-up with her supervisor and call the new owner. The agent called me back twice and on Friday XX/XX/XXXX, she presented me a settlement : XXXX ) return the equipment and the account would be credited for the machine. XXXX ) The balance left would be discounted 35 % and therefore, I would owe {$350.00}. The agent said she would email that information to me and I have not received anything in writing. That is when I decided to call the Federal Trade Commission, CFPB.

Company response to consumer: Closed with explanation