Am I responsible for a fee that was charged to me for a service that I applied for but never use?

Question

A salesman walked in my store and offered me his company's business as credit-card processing services. He talked me into replacing my existing service with his company's by assuring me better benefits with no cancellation fees. And if I apply it, I'll be given a free software. So I did applied it and signed the application without reading a statement saying that if I terminated the agreement at my sole discretion, a termination fee is applied.
I was asked to call their 1-800 number to set up and activate the account once I canceled my old service, but I never did. So I never used their service. But they sent me monthly statement and charged me some fees by automatically debiting my bank account.
Too slow I closed my business and acknowledged them about it. They then threaten me about the termination fee. I told them that I never used their service and that their sales person told me over and over verbally that I could cancel at any time
without any fee. But the collection continues

My business was in the form of LLC. And I had my personal name on the application. The amount involved started from $200s and added up to the $300s with interest.

Apparently they have submit the case to the collection agency. And they have been calling and sending out letters ever since. I always ignored them. I felt cheated!

Does anyone have any clue what's going to happen next? Any clue what I can do to win this?

The problem that I have is that my account wasn't activated yet so there was no transaction whatsoever. They just approved my application, that's it and I never called them and activated that account because I shut down my business not long after that.

Answer 1

If you signed a contract saying that there were termination fees, you're liable to pay them.

It doesn't matter what a salesperson says, in a court of law it will be your word against his, what matters is what you signed.

Answer 2

Sorry. You had the service available to you. They kept their part of the deal. You wouldn't expect a refund from a cable TV company because you didn't watch it, or from a garbage company because you forgot to put out your trash, would you? Are you really ready to make yourself crazy, and damage your credit, for only $300. Pay it and make the problem go away. If only all problems were so easily disposed of.