ED Magedson – Founder
Lease Financial GroupNationwide USA
Lease Financial Group or Global Leasing Company business fraud, fake leasing contract, merchant contract cheating Los Angeles, Chicago, New York City Nationwide
Lease Financail Group (LFG) advertised low-cost merchant service to customers. But a very expensive credit card leasing contrasct was hiden into the merchant service contract. In my case, the card reader values about $500. But LFG charges monthly $125 leasing fee by the contract. Actual charge is about $140 - $160 very month after unknown "service fees" are added. Since the charge is bundled together with merchant contract. I can not cancell it if the merchant contract is valid. Eventually, I cancelld the service by closing my business account. LFG sued me from NY city. I am currently just replied its sommons. I descibe LFG's businss fraud as following so that others do not get into the trap designed by LFG.
A sales represent (about 30-year-old man) stopped by Hydration Café in City of San Jose, California, on or about November, 2011 to market credit card merchant service. The sales person requested a statement of my previous merchant service in his first visit.
The sales person came back after about a week and told me that my merchant statements had been carefully reviewed by him. He could provide a new merchant service so that I could save at least a hundred dollar credit card transaction service fee each month. Therefore, I decided to sign a new merchant service with him.
The sales person brought merchant service agreement documents. Before signing the documents in his third visit. I asked the sales person if I can cancel the contract. The sale person answered me that “Certainly, you can cancel it at any time with $250 penalty charge”. Thereafter, the sale person explained the merchant service to me and I signed the documents. No “equipment lease agreement” was mentioned by the sale person. With my best knowledge, I did not sign any “equipment lease agreement” at that night.
Then, the new merchant service was setup and we received first merchant statement after a month. The total merchant service fee was more expensive than my expectation. Therefore, I carefully reviewed the first statement and found an unknown $145 USD charge.
My wife immediately called merchant service company and she was informed that this charge was equipment lease fee by an equipment lease company. The merchant service gave my wife a Chicago phone number. Thereafter, my wife called the equipment lease company in Chicago to cancel this charge.
But the equipment leasing company informed us that I had signed a “NON-CANCELLABLE” equipment lease agreement. As a result, we could not cancel the lease agreement.
Thereafter, the equipment lease company sent me the lease contract that was “signed by me”. It was the first time for me to see the so-called “Equipment Lease Agreement”. The sale person did talked about this contract to me. I never reviewed this contract before. But it showed that the contract was signed by me. I was surprised, and realized I unfortunately became a victim of the business fraud.
I immediately denied the lease agreement to the equipment lease company in Chicago. But the equipment lease company in Chicago reject my denial. I request the address and contact information of the sales man who came to my cafe and signed the merchant service with me. But Chicago side rejected to provide any information about the sales man.
I search internet, the equipment (VeriFone OMNI 5100) had price of about $600 USD at that time. It is only $104 USD today in Amazon (amazon.com/Verifone-Vx510le-Credit-Card-Machine/dp/B00C2K8WAQ/ref=sr_1_1?ie=UTF8&qid=1403029257&sr=8-1&keywords=VeriFone+OMNI+5100). But the equipment lease company charges $126 basic fee plus other fees so that we paid about $140 - $160 USD each month. How does a machine with value of $104 - $600 obtain monthly lease fee of $140 - $160 USD?. It is obviously a business fraud. My wife and I rejected to pay the bill.
Eventually, a customer service person of the equipment lease company proposed to add 25-cent fee into each transaction that is charged to my customers. As a business owner, I could get extra 25 cents from each transaction and could use this money to pay equipment lease fee.
My wife and I had no choice but accepted this proposal. We have to use credit card processing service every day for our business. If the merchant service is on, equipment leasing were automatically charged from my business account without my permission. Without the equipment, merchant service did not work either. We have to pay penalty to cancel merchant service. It was hard for us to argue at that time.
After we agree to this proposal, a technical support guided my wife to reconfigure the equipment (VeriFone OMNI 5100) to add 25 cents into each transaction.
After we use the service for several months, a few customers began to complain the hidden 25-cent charges in their transactions. A couple of customers warned us that it was illegal to add hidden transaction fee, and we might be sued by the improper business behavior.
Some of my customers become unhappy with the 25-cent charge and I am at the risk of lawsuit. I decided to stop the leasing service.
I have no any knowledge to sign this equipment lease agreement. I deny the agreement until someone proves that the agreement was signed by me in front of him.
The sales person was the only witness who can witness if I signed the contract. I asked the equipment lease company in Chicago and in New York City to provide me the address of the sales person (about 30-year-old man). They denied to provide any information about the sales person.
This report was posted on Ripoff Report on 07/03/2014 05:36 PM and is a permanent record located here: http://www.ripoffreport.com/r/Lease-Financial-Group/nationwide/Lease-Financial-Group-or-Global-Leasing-Company-business-fraud-fake-leasing-contract-me-1159477. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.
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