Ashok Pandya and PayPoint are at loggerheads.

Many of you will be familiar with this scenario. Ashok has a 3R terminal in his store, Jolly News in the East End of London. He got a PayPoint terminal in May 2010. He queried terminating his 3R terminal, but was told that this would require 26 weeks’ notice, or a payment of £495 + Vat + another £200 + Vat to HBoS. 3RT suggested that, since Ashok was only using his 3R terminal to process debit and credit cards, it should not affect his new contract with PayPoint.

However, Ashok also began processing top-ups through the 3R terminal because it gave him a very favourable deal.

PayPoint agreed that, had Ashok been doing credit/debit card transactions only through the competitor terminal, there would be no issue. “However, he confirmed in August that he uses it for mobile top-ups and refused to stop doing so unless we gave him a rent-free credit/debit machine,” said spokesman Peter Brooker. “Clearly, he is in breach of contract and we are, therefore, applying the charges as detailed in the contract with us.”

PayPoint has suspended Ashok’s terminal and has informed him that the remaining costs to PayPoint would be £1,600 + Vat (for the 44 months remaining of the initial term x £25 per month + £500 early termination cost).

He wrote back in protest, but this was swiftly answered by a letter from Irwin Mitchell Solicitors acting on behalf of PayPoint, which said it had been instructed to issue legal proceedings unless payment of £1,920 was received within seven days.

Ashok will be putting in a counter claim, also for loss of business, which amounts to £6K.

I will bring you the result as soon as I hear.