- Report: #167852
Complaint Review: Northern Leasing Systems - New York New York
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Northern Leasing Systems
132 W 31 St New York, 10001 New York, U.S.A.
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Northern Leasing Systems fraudulent lease, summary judgment New York New York
In 1998 I decided to supplement my single mom household by starting an Internet business. I received an email from Total Merchant Services promising to help me with no money down (selling computer parts). They set up everything for me including a merchant account and credit card processing.
4 months into the new venture I was defrauded by an individual using stolen credit cards to purchase goods and due to the enourmous back charges was put out of business.
I notified everyone involved and attempted to close all my merchant accounts. Northern Leasing summarily informed me that I could not cancel my lease and was liable for four years of lease payments on my virtual terminal (I had no equipment, just a website address to process the CC's). They continued drafting monthly fees of 37.95 plus various other fees for another two months before I finally closed the account.
After that I was bombarded with collection letters and phone calls for another year or so. Each time I told them, I had NO equipment, I was out of business and I wanted the lease cancelled. Eventually in Dec. 2002 they filed a judgment against me in NY and received a default judgment since I was unable to travel there to defend myself or hire a lawyer.
This has been sitting on my credit report ever since and although my business went under in 98 it will continue to sit there for another 4.5 years ruining my otherwise good credit.
I've written to all the CRA's but they will not take it off unless NL vacates it.
Here's my contention:
1) I never saw the miniature fine print on the back of the lease to sign, just the first page. The remainder was mailed to me after I signed it. Had I known I could not cancel this, I would've NEVER signed it. Incidentally, I noticed that the copy of the lease NL sent to the court with the judgment is NOT the copy of the lease that I have in my possession - very odd.
2) I never received any processing equipment, just a website address. Plus, their so-called "terminal" was NOT secure and hence allowed anyone to make purchases - even with stolen credit cards. The sales rep had insured me that everything was safe and verified - obviously NOT the case. The credit card company came after me for almost 8 grand of bad charges!
I read the FTC decision on Leasecomm and I would be VERY surprised if NL wasn't another of Microfinancial's shady subsidiaries since their modus operandi is identical! I also feel confident that with the right attorney I can go after them to have the judgement vacated and be reimbursed for the expenses, stress and lost opportunities I had fighting this for almost seven years.
I urge anyone going into business for themselves not to do business with this company - it will only spell trouble!
Regina
Charlotte, North Carolina
U.S.A.
4 months into the new venture I was defrauded by an individual using stolen credit cards to purchase goods and due to the enourmous back charges was put out of business.
I notified everyone involved and attempted to close all my merchant accounts. Northern Leasing summarily informed me that I could not cancel my lease and was liable for four years of lease payments on my virtual terminal (I had no equipment, just a website address to process the CC's). They continued drafting monthly fees of 37.95 plus various other fees for another two months before I finally closed the account.
After that I was bombarded with collection letters and phone calls for another year or so. Each time I told them, I had NO equipment, I was out of business and I wanted the lease cancelled. Eventually in Dec. 2002 they filed a judgment against me in NY and received a default judgment since I was unable to travel there to defend myself or hire a lawyer.
This has been sitting on my credit report ever since and although my business went under in 98 it will continue to sit there for another 4.5 years ruining my otherwise good credit.
I've written to all the CRA's but they will not take it off unless NL vacates it.
Here's my contention:
1) I never saw the miniature fine print on the back of the lease to sign, just the first page. The remainder was mailed to me after I signed it. Had I known I could not cancel this, I would've NEVER signed it. Incidentally, I noticed that the copy of the lease NL sent to the court with the judgment is NOT the copy of the lease that I have in my possession - very odd.
2) I never received any processing equipment, just a website address. Plus, their so-called "terminal" was NOT secure and hence allowed anyone to make purchases - even with stolen credit cards. The sales rep had insured me that everything was safe and verified - obviously NOT the case. The credit card company came after me for almost 8 grand of bad charges!
I read the FTC decision on Leasecomm and I would be VERY surprised if NL wasn't another of Microfinancial's shady subsidiaries since their modus operandi is identical! I also feel confident that with the right attorney I can go after them to have the judgement vacated and be reimbursed for the expenses, stress and lost opportunities I had fighting this for almost seven years.
I urge anyone going into business for themselves not to do business with this company - it will only spell trouble!
Regina
Charlotte, North Carolina
U.S.A.
4 Updates & Rebuttals
Jimmy
Seattle,Washington,
U.S.A.
We need to go together to fight them back
#2Consumer Suggestion
Fri, December 23, 2005
o: The FTC, the President of the United States, and all Attorney Generals We, the hard working, honest citizens of the united states are being plagued and terrorized be the Northern Leasing ,that freely violates federal laws and statutes, and targets those that are trying to make a better life for themselves and their families, cash poor, and have less than perfect credit, The Northern Leasing , a division of Leasecomm Corporation and Microfinancial Incorporated, violates the Fair Debt Collection Practices Act, they claim their contracts cannot be canceled, this is an unfair and deceptive act and practice, which is illegal under the Fair Debt Collection Practices Act and the Consumer Protection Act, they add false charges to their bills, chage for collection contacts, even when they do not follow through with the contacts they charge for, without refunding the money for those collection contacts, they charge well over 10 times the fair market value of their leases, and they do not state the fair market value of those leases on the contracts, this is a direct violation of the Truth In Lending Actwhich forbids thier jacked up charges and and requires the fair market value to be written on all leases. We, the victims of the Northern leasing ,need to go together and citizens of the United States DEMAND and administrative order to refund ALL funds, to remove the negative marks from our credit ratings, stop ALL COLLECTION ACTIVITY AND LEASING, and to cancel all contracts. Sincerely,
Regina
Charlotte,North Carolina,
U.S.A.
Additional information
#3Author of original report
Tue, December 20, 2005
I forgot to include in my last update that I have also informed the following (via snailmail with copies of EVERYTHING) - NC Atty General NY Atty General Atty's for the FTC My congressman My representative CNN MSNBC ABC FOX I filed another complaint with the FTC directly (first one against this company in 2000). If EVERYONE affected would file complaints and alert their Atty Generals etc. I think we can get this moving a lot quicker. I will keep looking for additional consumer protection avenues and send them copies of everything too. I am NOT rolling over for these folks or cowering in fear of a court reprisal. Seven years ago I may have been naive and inexperienced, but I've come a long way since then and have learned enough to make a LOT of noise with the right people to defend myself.
Dirtnap300
Stafford,Virginia,
U.S.A.
Good Luck!! i am keeping my fingers crossed
#4Consumer Comment
Tue, December 20, 2005
What was the name of the lawyer? Im sure the people here would love to be able to contact him/her.
Regina
Charlotte,North Carolina,
U.S.A.
Northern Leasing, Default Judgement
#5Author of original report
Mon, December 19, 2005
Received a nice little notice from a "collections expert" at Northern Leasing today - about a week after I filed the ripoff report! They miraculously added another $1000 to the judgment amount and are threatening me with garnishment. How about that? There is a class action suit going on in NY and I've just spoken with the attorney that is leading it. So I'm hopeful to join that as soon as he has reviewed all the paperwork. If anyone else has problems with these criminals, join that lawsuit!
