Kindly note the following points regarding the history of business proposal offered to me by New Merchant Services
One day I received a phone call from Madam Lori Lyon of New Merchant Services proposing a lucrative home business. She claimed that they are more than just processors but they are my partners She said New Merchant Services will set up the business, train me and in three months if I am not satisfied just simply call them and they will terminate my business.
After several phone calls from them I agreed to try this business proposal and Lori Lyon told me that she will be sending a few agreement papers with New Merchant Services which she said it is only for the formality sake. She highlighted the signature area and sent me the bunch of papers. She said that I must have a credit card processing equipment to start with a business. She never told me the cost of the equipment and later on I came to know that it costs less than $ 250. She never told me that New Merchant Services will lease the credit card processing equipment through MBF leasing, LLC.
I signed at the highlighted areas and sent back the agreement papers to Lori Lyon of New Merchant Services. The credit card processing equipment came to me from New Merchant Services by UPS and it has never worked. I called New Merchant Services repeatedly and they asked to start the training first and later on every thing goes smoothly. New Merchant Services arranged my training program every Wednesday. It went smoothly for two Wednesdays and after that there was no support for the training.
During this period of time MBF Leasing, LLC has never contacted me regarding the leasing of the credit card processing equipment. I presumed that since the equipment has come from New Merchant Services and they are responsible to establish my business from start to finish.
Mean while MBF Leasing, LLC started charging my debit card $ 70 + $ 5 for invoice every month. In the month of December 2005 I called the New Merchant Services to terminate by business. They told me that I will have to pay $ 250 for early termination fee for which I agreed. I asked them to inform MBF Leasing Company not to deduct any money from my bank account.
Even after several request MBF leasing, LLC continued to deduct $ 75 from my account every month. In order to avoid this I kept my bank balance below $ 50 and to my surprise they have attempted collect money from my bank account every third day and in return my bank charged me $ 35 for every attempt they have made and total my bank charged me over $ 600 due to insufficient fund as financial charges. After that as per my bank advice I closed my account so that bank will turndown their request as account closed.
After this I started receiving phone calls from MBF Leasing, LLC several times a day to collect the money. They said I have signed an agreement for 48 months lease which comes to $ 3600 for the equipment costing merely $ 250. I did not agree with it and I told them that my business relationship is with New Merchant Services and not with the MBF Leasing. I told them that I have returned my credit card processing equipment to New Merchant Services who have sent me the equipment.
Now MBF Leasing, LLC has referred it to Northern Leasing Systems, Inc. as a collection agency for outstanding balance of $ 3455.92 and they are not giving me the detail break up and justification of this collection amount of $ 3455.92.
I believe it is a scheme to entrap small business in to equipment leases with undisclosed charges and erroneous terms.
After this I made further research on MBF Leasing, LLC and Northern Leasing Systems, Inc. which are published in rip-off Report.com and my doubts were cleared that these are the companies of dishonest, undisclosed charges and misrepresentation schemes of MBF Leasing and Northern Leasing.
In view of the above they will have to return all my money including my bank charges and compensation for the damage done by both collaborating companies.
Instead of returning my money they are taking the support of various credit collection agencies and reporting it to my credit file, as a result I have been declined any new credit cards.
In view of the above I request you to kindly intervene and advice me a free legal services so that I can take legal action on the company and settle the dispute at the earliest. Please also educate me how to deal with such fraud companies in future who offers business proposal on phone.
Thank you for your consideration and I look forward to your response.
San Francisco, California
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