Your leased copier has been broken for three weeks. The dealer sent a technician who could not fix it. They ordered a part that has not arrived. Meanwhile, you are still paying $400/month for a machine that sits in the corner producing error codes instead of documents.
This is one of the most frustrating situations in business equipment leasing, and it happens more often than dealers want to admit. Here is exactly what to do, step by step, to force resolution and protect your business.
Your Rights When a Leased Copier Breaks Down
Your copier lease and service agreement establish two separate obligations. The lease obligates you to make payments for the equipment. The service agreement obligates the dealer to maintain the equipment in working condition. A broken copier is a service agreement failure, not a lease payment issue.
This distinction matters because many businesses assume that a broken copier gives them the right to stop making lease payments. In most cases, it does not. The lease payment goes to the leasing company for the equipment financing. The service obligation belongs to the dealer. These are often separate companies with separate contracts.
However, if the service failure is severe and prolonged enough, it can become grounds for lease termination. The threshold varies by state and contract, but generally, if the equipment is non-functional for more than 10 to 15 consecutive business days and the dealer cannot provide a resolution timeline, you have a strong case for demanding action.
Step 1: Create a Written Record Right Now
Stop relying on phone calls. Every communication from this point forward should be in writing (email at minimum, certified mail for formal complaints). Your written record should include:
- The date the copier broke down
- Every service call you requested, with dates and times
- The dealer’s response time for each call
- What the technician diagnosed and attempted
- How many business days the copier has been non-functional
- The business impact (missed deadlines, outsourced printing costs, employee downtime)
Step 2: Formally Demand Resolution
Send a written letter to the dealer’s service manager (not your sales rep) stating: the machine has been non-functional for X business days, you have made X service requests with inadequate response, and you require a specific resolution (repair, replacement, or loaner) within 5 business days.
Copy the leasing company on this letter. This puts both parties on notice that the situation has escalated beyond a routine service call.
Step 3: Demand a Loaner Machine
Many service agreements include a provision for loaner equipment when repairs exceed a certain timeframe. Check your agreement. Even if it does not explicitly mention loaners, most dealers have spare equipment available and will provide a loaner to prevent a formal complaint.
If the dealer refuses to provide a loaner, document the refusal in writing and calculate the cost of outsourcing your printing (local print shops typically charge $0.10 to $0.25 per B&W page and $0.50 to $1.50 per color page). This outsourcing cost becomes part of your damage claim if the situation escalates.
Step 4: Escalate to the Manufacturer
If the dealer cannot or will not resolve the problem within a reasonable timeframe, contact the copier manufacturer’s dealer relations department. Explain the situation, provide your documentation, and ask them to intervene with the dealer.
Manufacturers take these complaints seriously because unresolved equipment failures damage their brand reputation. A call from the manufacturer to the dealer often produces results that months of direct complaints could not achieve.
Step 5: Evaluate Your Legal Options
If the copier remains broken after 30+ business days despite documented repair attempts, consult a business attorney about your options. Depending on your state and contract terms, you may be able to terminate the lease based on the dealer’s failure to maintain the equipment, recover the cost of outsourced printing and business losses, or file a claim for breach of the service agreement.
What Most Guides Miss: The Payment Escrow Strategy
Withholding lease payments is risky because the leasing company can report the non-payment to credit bureaus. A safer approach: continue making payments but send a written letter to the leasing company stating that you are making payments “under protest” and reserving the right to recover them if the equipment is not restored to working condition within 30 days.
This “payment under protest” approach preserves your credit while creating a documented record that you are not waiving your right to dispute the charges. Some business attorneys recommend placing disputed payment amounts in an escrow account to demonstrate both good faith and intent to seek resolution. For more on handling difficult lease situations, read our guide for businesses stuck in bad copier leases, and understand your complaint options at our copier lease complaints resource.
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