• Report: #101195
Complaint Review:

Norvergence - IFC Leasing

  • Submitted: Thu, July 29, 2004
  • Updated: Tue, August 17, 2004

  • Reported By:Houston Texas
Norvergence - IFC Leasing
www.norvergence.com New Jersey, New York U.S.A.

Norvergence - IFC Leasing Ripoff, Telecommunications Scam on a National Level, Leasing Agencies In On It New Jersey New York

*REBUTTAL Owner of company: Norvergence-IFC Leasing Scam

*Consumer Comment: Dealing with Norvergence / IFC leasing scam

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We are a small family owned business in Texas. Our company was approached by a sales rep from Norvergence. He told us a great fairy tale about a magic box called a Matrix box that could reduce our total telecommunications bills by 20-30%. All he needed was our current bills to give us an estimate.

He returned with a grand promise to lower our expenses by almost $8,000 a year. We just needed to sign a few documents. We asked him what would happen if the company went out of business since the agreement was for 5 years. He told us they had agreements in place with such giants as Sprint, Nortel, Qwest Communications and T-Mobile. These companies would guarantee us service for the full five years and at the current rates regardless of Norvergence.

They coupled our T1, 6 phone lines, cell phones, 800 numbers and fax lines into one bill. It was alleging to save us good money. It had the Giants of Communications logos at the top of their letterhead. I called 20 references in the Great State of Texas and all said they had done what they said would. So, we signed the leasing agreement of the Matrix box.

They sent us a new phone system for free. It is a nice phone system. It sat in a box for 5 months before it was ever installed. The magic Matrix box sat in a closet for 4 months before it was installed. The services were NEVER connected.

As part of the agreement, they promised to buy you out of your present contract with your phone companies. They never did that. We paid both our old phone company and the lease payments for 4 months. Norvergence promised they would send assistance checks to cover our expenses for paying two companies. We got one and never another.

We signed in December. Our lease was sold to IFC leasing in March '04. We got bills from them but no communication. We got our cell phones in June! JUNE!

Norvergence was forced into Chapter 11. The courts turned it into a Chapter 7, liquidation. Qwest terminated all service to Norvergence customers. Sprint and T-Mobile were allowed to do the same. Sprint contacted us, however, and helped us port our numbers over to them directly and gave us a deal on cell phone usage. The leasing companies were now demanding that we make our payments and threats were issued on numerous occasions. We have made all our payments despite the fact that the equipment is useless.

We contacted our old carrier. WE HAD NEVER BEEN REMOVED FROM THEIR SERVICE! They never recieved anything requesting that our numbers be moved to Norvergence. They hadn't even been contacted. They sent over a tech guy to inspect our lines. The tech guy removed the Norvergence box from the wall and unplugged it. NOTHING HAPPENED! Nothing was connected to this box. Everything was just as it had been before this nightmare got started. We had been paying for nothing. We had been paying for a black box to be installed in our telephone closet as a decoration.

We contacted the leasing company and informed them we were sending them the equipment and stopping all payments. They informed us they would accelerate our payments and seek legal action to force us to pay in full. 60 months at $500.00 a month is a $30,000 useless piece of equipment!

The bankruptcy hearings were held in New York the first week in July. Norvergence was represented. The Giants of telecommunications were represented. The leasing companies were represented. The 11,000+ customers that signed contracts with Norvergence were not represented at this hearing. All of us are left trying to find a legal way out of this hostage situation.

The leasing companies are holding us hostage to these leases despite their invalidity. Small business all across America are struggling paying their leases and their new service they had to get connected when Qwest terminated services. Not to mention a lot of these companies were issued back bills from their former communications companies that Norvergence never paid. Where does it end?

This was a scam of the largest proportions that specifically targeted small companies across the country. The media isn't picking up this story. It needs to be heard. There are others out there that need to join with us to get out of our leases.

Inflexion is being presented to businesses as we speak. This is the Norvergence scam with a new name! Be careful!!

Houston, Texas

This report was posted on Ripoff Report on 07/29/2004 12:34 PM and is a permanent record located here: http://www.ripoffreport.com/reports/norvergence-ifc-leasing/new-jersey-new-york/norvergence-ifc-leasing-ripoff-telecommunications-scam-on-a-national-level-leasing-age-101195. 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 REBUTTAL Owner of company

Norvergence-IFC Leasing Scam

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

We are a small business in South Florida that fell for the Norvergence - IFC scam in an attempt to save several hundreds of dollars per month on cell phone bills that were ironically never delivered.

They finally installed the MATRIX closet ornament in June and promptly sold the lease to IFC Leasing...the same company that complained to the New Jersey BK court in July that IFC had several hundred accounts in default at an expected default cost of 10 million dollars.

It is hard for IFC Leasing to argue they were innocent victims of Norvergence when they continued to buy leases from Norvergence when most customers were not even making their first payment.

How can IFC Leasing expect to collect from accounts that were sold non-tranferrable, worthless Adtran equipment without service when their own Master agreement with Norvergence transfers the account back to Norvergence if the customer never makes a payment or subsequently defaults on the contract?

Besides the obvious FTC and UCC concerns regarding the complicent relationship between corporate officers from both companies, more important is the RICO "bait and switch" standard is met and should trigger an order for injunctive relief prohibiting the LC's from issuing demand payment letters prior to the completion of a complete investigation by the FTC.

Please post if you have been issued a demand payment letter or lawsuit notification letter or the like from IFC.
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#2 Consumer Comment

Dealing with Norvergence / IFC leasing scam

AUTHOR: Andrew-John - (U.S.A.)

My small company is also a victim of the Norvergence / IFC scam. Recently, we attempted to return the Matrix equipment to IFC. They said that they paid Norvergence for it in advance, so it belongs to them. Since we are no longer interested in doing business with any company involved with the Norvergence scam and we were not going to make any more payments on the useless equipment & non-existent service, it wasn't right for us to keep the equipment.

Last week, we sent it to IFC via UPS and they refused it, the package was marked "refused, not ordered ". Now the package has been returned to the mailing center from which it was sent.

We haven't heard from the IFC collections mob in a few days, but still don't know what to do next...

Have any complaints been made to the FTC ? Is there a place to seek relief from this terrible situation ?
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