On November 11, Tennessee Attorney General Herbert H. Slatery III and the Tennessee Division of Consumer Affairs announced that it had settled allegations against credit card payment processor Elavon, Inc. to resolve claims that it violated state consumer protection laws by misrepresenting the cancellation policy of its credit card processing equipment leases, the duration of credit card processing equipment leases, and the compatibility of credit card processing equipment. Elavon and its subsidiary, Ladco Financial Group, LLC, provide products and services that enable retailers to process credit card transactions.
The settlement required Elavon to accept the cancellation of services of the return of goods as promised and to issue timely refunds or credits. It also mandates that the company clearly disclose the basic terms of its offers to customers including the contract length, the cancellation policy, and the customer’s monthly payment amount. Additionally, the settlement requires Elavon to resolve disputes regarding equipment incompatibility within 15 days of receipt and allow the customer to terminate without penalty and receive a refund should the problem go unresolved.
Most notably, the settlement also set aside funds to compensate Tennessee residents who previously filed complaints against Elavon, or who file complaints by February 27, 2016, with the Tennessee Division of Consumer Affairs, the Better Business Bureau, or the Federal Trade Commission.