What Happened: Blackstone Solicitors were instructed by a firm of debt recovery agents following a breach of contract by a merchant services provider (card machine) in respect of the percentage fees applied to transactions taken by way of credit and debit card.
Our client has been in a 5 year agreement with a merchant services provider but had the option of a break after 3 years. The banks agent, represented that a percentage fee could be fixed on favourable terms. The representation induced the client into remaining with the bank for the further two years and signing a contract to that effect.
Damages: Following our clients commitment to the revised contract, the bank, in breach of contract, revised its fees due to alleged “industry changes”. Those fees represented an increase on our client’s standard monetary transaction of almost 300% from what had been agreed.
What Blackstone Did: We issued proceedings in respect of loss and damage caused by the breach. The Defendants defended the claim robustly and, in particular relied on a number of limitation/exclusion clauses which we contended were unreasonable under the Unfair Contract Terms Act 1977.
Outcome: The matter settled at mediation on positive terms for our client.