Complaint Review: Merchant Business Group (Charley Files Sales Rep) CIT Lease Finance Group - Chicago Illinois

I own a small business in Olympia, Washington, the state capital. In August 2005 I was visited by a Charley Files, a sales rep with Merchant Business Group,(Roy, Washington) selling credit card processing service, promising much lower rates for my business which had been experiencing large credit card sales growth.

Although I was happy with Bank of America as my processor, I was enticed by the lower rates and savings for my business. I owned my own processing equipment and he verbally notified me that I would need a more updated machine if I switched but that he would take my equipment and make sure I received a credit for it. He mentioned a $49 monthly lease which I assumed to be 12 months and assured me that I would still be saving money, even with the monthly fee.

I filled out an application which he said he would complete back at his office and contact me in a few days once everything was approved. I never thought to ask him how much of a credit I would receive for my equipment or how long the lease terms would be or even if it was cancellable. He presented himself as such an easygoing no pressure professional I assumed he was trustworthy.

He came back on 8/30/05 and switched out the equipment, my credit card machine and PINPAD. My store was open at the time and I was busy helping customers. He handed my a pile of paperwork and pointed out where to sign and initial, never offering me the opportunity to sit down and read it or going over the terms. He said he needed to leave for another appointment and took my PINPAD machine with him and my machine.

The PINPAD company, TASQ TECHNOLOGY, had sent a machine he said was the "wrong one" and offered to send it back for me. I said ok. I realized the next day I didn't have any copies of the contract. I tried to call him but couldn't get a call back.

I received a letter from CIT/Lease Finance Group the following week, which stated the terms of the lease were $49 per month for 48 months. I was aghast at the terms, which amounted to over $2300. I called them and explained I never received a copy of the contract and would never have signed a lease for those terms.

They faxed me a copy which bears my signature and initials and states NON-CANCELLABLE across the top. However, the machine listed was a Verifone Omni 3200, and I received a Hypercom T7 Plus. I don't remember seeing the boxes filled in that stated 48 months as the term. I believe it was filled in after I signed by Mr. Files.

I sent in a letter of dispute to CIT/Lease Finance Group on 9/22/05 after repeated phone calls to Mr. Files failed to result in any action. I never received ANY credit for my machines that he took with him. I also received multiple call tags from TASQ TECHNOLOGY for the two PINPAD devices that he never returned to them.

Finally, with the help of my husband, Mr. Files assured us the PINPAD machines would be returned (the one thing he actually followed through on). But he also told us he would return our equipment to us or comparable equipment (that never happened).

I was able to cancel my contract with TOTAL MERCHANT SERVICES, the credit card processing company, after filing a complaint with the Washington State Attorney General's Office, but they were no help in nullifying the invalid lease. I received a response to my dispute letter, with an offer to send out the correct machine on the contract, the OMNI 3200. I responded with a registered letter, stating I would not accept this machine and stood by my original dispute, which summarized, is this: the incorrect equipment was listed (a lesser machine was provided), the lease had no commencement date filled in, no total payments listed, and the contract was presented under duress, in a situation where I did not have adequate opportunity to read it, and I was then not presented a copy as stated in the contract terms.

After reading the similar reports against this company, I am interested in pursuing a class action lawsuit against CIT/LEASE FINANCE GROUP on the grounds of excessive lease charges, use of independent sales reps which allows them to be totally unaccountable for any claims or promises made, and contract fraud.

I am a small business owner with two children and a husband on Social Security to support; I don't have the finances or time to fight this battle but there must be some way to make these type of companies accountable for their deceptive business practices.

And yesterday I received a response from Ms. Nakia Akins, a CIT/Lease Finance Group representative which states: "Unfortunately I am unable to cancel the lease agreement you have with LFG based upon your allegations of what you and the sales representative discussed." I have no documentation to send them since everything was presented verbally.

This company needs to pay. It's not right what they're doing.

Sarah

Olympia, Washington
U.S.A.