• Report: #238663
Complaint Review:

MBF Leasing - Leaders Mechant Services

  • Submitted: Fri, March 09, 2007
  • Updated: Sun, April 06, 2008

  • Reported By:Killeen Texas
MBF Leasing - Leaders Mechant Services
132 West 31st St, 14th Floor New York, New York U.S.A.

MBF Leasing - Leaders Mechant Services ripoff Hidden Leasing terms New York New York

*Author of original report: MBF Leasing

*Consumer Suggestion: Gregory, Quit trying to blame Leaders!

*Consumer Comment: Leader and MBF Leasing are the same

*UPDATE Employee: Leaders Merchant Services does not and cannot instruct merchants to return leased equipment when we close a merchant credit card processing account an

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Opened a merchant account with Leaders for our small business. As part of the Leaders account, Leaders acted as an agent for MBF Leasing and leased us the terminal equipment. As our business grew, our charge card transactions also grew. Suddenly Leaders could not process our transactions because the transactions went over $500.00 each.

After some discussion with Leaders, Leaders agreed to terminate our contract, which they did do, and also stated that the terminal equipment could be returned if necessary. As Leaders was acting as an Agent for MBF Leasing, the termination of the contract with Leaders also terminated our lease for the equipment - as described within Texas Law.

We found another merchant account and were told that the equipment we had was not compatible with their system. We purchased a new terminal at that time. We asked Leaders who to send the old equipment to, and they said MBF. We did send all terminal equipment back to MBF.

MBF Leasing claims that the contract can not be terminated and that we still owe in excess of $1000.00 and must either pay the lease in full or continue to monthly payments. The account was closed from which MBF was drawing the funds monthly. Next thing I knew was that MBF was drawing funds from another account that I had. This was done without my permission, and IS ILLEGAL in any state. Now we are getting the pesky phone calls at least 8 times a day (which is also Illegal), and the threatening letters.

The facts are that Leaders did act as an agent for MBF. And as such, any commitment made by them and terminated by them, was made and terminated for all parties involved. Secondly, MBF DID violate the law by somehow obtaining information about my other banking account and taking funds from that second account without my expressed permission. Additionally, MBF did receive the equipment back at the direction of their agent, Leaders.

As with most folks, taking this to court will cost more that the equipment lease. So we are all railroaded into a situation that is apparently not governed very closely and has run amuck. The only solution is class action as I look into my response.

Killeen, Texas

This report was posted on Ripoff Report on 03/09/2007 11:21 AM and is a permanent record located here: http://www.ripoffreport.com/reports/mbf-leasing-leaders-mechant-services/new-york-new-york-10001-3405/mbf-leasing-leaders-mechant-services-ripoff-hidden-leasing-terms-new-york-new-york-238663. 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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Updates & Rebuttals

#1 Author of original report

MBF Leasing

AUTHOR: Gregory - (U.S.A.)

As the originator of this report, I would like to make further comment. The issue was, and is, that Leaders acted as an agent of MBF. Secondly, MBF did take money out of another account, FROM A DIFFERENT BANK. I would like to know how they developed that ability. We are continuing to pay, as it would indeed impact on my credit report and is not terribly expensive every month. I had to pay for the education that I have, and this was another educational opportunity. After contacting an attorney in NY, we are indeed able to take action because of the way the situation actually was handled. However, the legal cost to do this was more than what is due on the lease, which makes it a moot point.

The point is that when leasing never, ever, take someone's word for something. Take the paperwork to an attorney before submitting regardless of the sales pressure - this WILL save you money in the long run. Also, deal with a reputable firms such as Royal Bank of Scotland or with Quickbooks Mechant Services. Quickbooks appears to have the best to offer right now.

We will now be faced with another issue once the lease is paid off. The equipment was shipped back to MBF previously at the direction of Leaders - sorry if the truth hurts someone, and I am sure when the lease is done they will want me to either buy the equipment for some price or ship it back - which I obviously can't ship something back that has been previuosly returned. Oh well, more lessons to learn.
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#2 Consumer Suggestion

Gregory, Quit trying to blame Leaders!

AUTHOR: Mike - (U.S.A.)

Gregory, If you are such a detailed business man as you claim to be you need to quit blaming Leaders for your problem! You knew that the lease you signed with MBF was non cancellable! (or did you just sign and not read the contract??) The MBF lease also states that if you close the account that is being used to deduct their monthly fees they have the ability to LEGALLY request the hosting financial institution to provide funds from any of your other accounts (YES IS IS LEGAL FOR THEM TO DEBIT YOUR OTHER ACCOUNTS AT YOUR BANK PER NACHA RULES) with out your approval! Leaders terminated your processing account to your satisfaction so do not blame them for your issues with MBF! Also, since you did NOT read your MBF lease you need to know that YOU are DESTROYING your personal credit by STOPPING mbf's ability to debit the monthly payment! YOU signed and listed your SSN and drivers license to this agreement!
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#3 Consumer Comment

Leader and MBF Leasing are the same

AUTHOR: Bruce - (U.S.A.)

Leader and MBF Leasing are the same business, they are part of organized crime ring. There are many other names that they go under. Leasecomm, Microfinancial, Northern Leasing, Vericomm , Universal Merchant Services and many other names. They are all joined together and are part of a nationwide scam and I am surprised that government has not stopped them because their actions are so blatent.
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#4 UPDATE Employee

Leaders Merchant Services does not and cannot instruct merchants to return leased equipment when we close a merchant credit card processing account an

AUTHOR: Sarah - (U.S.A.)

The merchant's credit card processing account was opened with our company on February 11, 2005. Due to issues concerning the merchant's average transaction value, LEADERS and the merchant mutually agreed to close the merchant's account. Please note that the merchant's account was closed 14 months after its inception.

The merchant also leased a credit card terminal through MBF Leasing and wanted to return the leased equipment after 14 months. Leaders Merchant Services is unable to cancel this lease or any lease with MBF Leasing. The MBF Leasing contract clearly states the lease for the equipment is non-cancelable and the merchant needs to continue to address this matter with the leasing company. We never tell merchant's to return leased equipment to the leasing company. This exceeds our authority and is contrary to industry practices.

The merchant's complaints should not be directed to LEADERS. We served the needs of the merchant for 14 months without issue. The merchant chose to leave our company and we complied with their request. But the leased equipment is from MBF Leasing and the merchant's complaint should be directed accordingly.
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