Equipment lease scam
Posted Mar 2, 2011 by anonymous | 162 views | 0 comments
As a small business owner, I signed a contract with a credit card processing company. I signed a lease for the credit card processing equipment and I approved an ACH debit authorization on my bank account. After four years, I terminated the contract. But the company who leased the equipment (a different one, I discovered later) kept on charging me for it long after: 1)it was paid for; 2)I had terminated my contract. I end up paying close to $5,000.00 for equipment barely worth $300.00! Their excuse: on the contract I signed, it says that they can keep on withdrawing the lease payment every month until I return the equipment. This was never mentioned by the sales rep from the merchants services company. And after the first 48 months, the lease was automatically renewed without my being made aware of it. Apparently, I was the one to remember to cancel it at that time! I found out since on the internet that 1) the merchant services company was the subject of a class action lawsuit for fraudulent business practices and 2) the leasing company, Lease Financial Group, has been scamming small businesses like mine for years!
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