MBF Leasing/Vericomm Electronics/Robert Jernigan MBF Leasing Scam New York New York

I am a 20 year old small business owner from NC. I was approached by a Vericomm sales rep last November. He told me he could save me money on my cc processing fees. I told him I was happy with what I had and he asked to see my cc processing statements and we reviewed them together. He showed me where I could save money.

He also told me that the cc machine that I purchased for about $400 was worthless and that his equipment was, quote, state of the art. He told me he would sell my credit card machine for $1200 to a guy he knew who bought credit card machines and leased them out to people. He also told me that he would cancel my previous cc processing account and pay any early termination fees. I was reluctant to sign the lease and told him that $129.95 was a lot to pay. He told me that the equipment was worth thousands and that he would re-negotiate the lease after I had the equipment for 6 months because he had the authority to do so and I wouldn't pay near what the equipment was worth.

He assured me that he had a lot of experience in this type of work because it is what he did before he got sick with cancer and that vericomm and MBF leasing were great companies. He said that he would fill out the paperwork and everything and get it back to me in a couple days.

The day he came back I was extremely busy. He told me that all I needed to do was sign my name in a few places and that it would only take two seconds and that the equipment would be here quickly and I could start saving money. I was only presented the first page of the Lease Agreement and received the rest in the mail at a different date from MBF leasing.

The equipment arrived and he came to help me install it. My credit card processing expense went from $26-$56 a month to over $295/ month. I was also receiving service charges from my other cc processing account that had not been cancelled. I though I would just hold off about six months and everything would get better b/c he would re-negotiate the lease at that time.

I contacted him again to reassure myself and he said I had nothing to worry about. I contacted him again regarding my old machine because I was wondering why he did not attempt to sell my old machine like he promised. He told me that no one wanted my machine because it was a piece of crap. Four months into the lease I became fed up with all the money I was being charged. I went to him again about all the charges and he claimed that he had cancelled my old cc processing account and did not know why they were still charging me. He also told me I still had to wait 6 months.

I later called my old processing company and they said that they had where a man called and told them that he worked for my business and they wouldn't let him cancel so he hung up on them. Later, he sent me a letter saying that he would buy out the lease he had gotten me into and take over whatever debt there may be as long as I paid him $60.95 for 24 months and I would own the equipment free and clear.

After he sent the letter he came to my business on April 6, 2007 and I told him I did not want the equipment anymore and he demandingly gave me 3 options: A. I could take the offer B. He would buy out the lease and put my old equipment in his wife's new shop that she would be opening and I would not have any financial ties to it. C. I could keep my lease and keep being overcharged. I was given till Monday April 9, 2007 to make up my mind. I was so on to his scam!

I told him I no longer wanted anything to do with him or the companies that he represents. He told me he would get the paperwork together and all I had to do was sign the lease transfer agreement and give the equipment over to him. I found the information stuck in my door after lunch on April 12th, it contained his business letterhead and a contract he had wrote up in his office. The next page showed an invoice where I owed him $250 cancellation fee. He deducted $100 for the bogus billboard advertisement that was suppose to be up in march so the invoice was for $150.

On the next page was a Lease Transfer Agreement with my current lease info filled in in his handwriting. I contacted MBF about it they said that I would have to request it personally and would be charged for $100 and that it would not be filled in by hand but would be typed.

Anyways when I signed the Lease Finance Agreement I believed my existing equipment would be sold and that my lease would be legally re-negotiated otherwise I would not have agreed to the terms set forth and entered the agreement under false pretenses. I believe that MBF leasing tells these sales reps what to do and who to prey on and they need to be stopped asap. I cancelled my bank account so they cannot get anymore money out.

They are now after me about the lease and have ruined my credit and are now trying to sue me for the money. It is hard enough running a small business without people trying to mess you up. I am getting married next year and I don't know how I'm going to buy a house with this on my credit report. What should I do?

G
Reidsville, North Carolina
U.S.A.