In 1998 I decided to supplement my single mom household by starting an Internet business. I received an email from Total Merchant Services promising to help me with no money down (selling computer parts). They set up everything for me including a merchant account and credit card processing.
4 months into the new venture I was defrauded by an individual using stolen credit cards to purchase goods and due to the enourmous back charges was put out of business.
I notified everyone involved and attempted to close all my merchant accounts. Northern Leasing summarily informed me that I could not cancel my lease and was liable for four years of lease payments on my virtual terminal (I had no equipment, just a website address to process the CC's). They continued drafting monthly fees of 37.95 plus various other fees for another two months before I finally closed the account.
After that I was bombarded with collection letters and phone calls for another year or so. Each time I told them, I had NO equipment, I was out of business and I wanted the lease cancelled. Eventually in Dec. 2002 they filed a judgment against me in NY and received a default judgment since I was unable to travel there to defend myself or hire a lawyer.
This has been sitting on my credit report ever since and although my business went under in 98 it will continue to sit there for another 4.5 years ruining my otherwise good credit.
I've written to all the CRA's but they will not take it off unless NL vacates it.
Here's my contention:
1) I never saw the miniature fine print on the back of the lease to sign, just the first page. The remainder was mailed to me after I signed it. Had I known I could not cancel this, I would've NEVER signed it.incidentally, I noticed that the copy of the lease NL sent to the court with the judgment is NOT the copy of the lease that I have in my possession - very odd.
2) I never received any processing equipment, just a website address. Plus, their so-called "terminal" was NOT secure and hence allowed anyone to make purchases - even with stolen credit cards. The sales rep had insured me that everything was safe and verified - obviously NOT the case. The credit card company came after me for almost 8 grand of bad charges!
I read the FTC decision on Leasecomm and I would be VERY surprised if NL wasn't another of Microfinancial's shady subsidiaries since their modus operandi is identical! I also feel confident that with the right attorney I can go after them to have the judgement vacated and be reimbursed for the expenses, stress and lost opportunities I had fighting this for almost seven years.
I urge anyone going into business for themselves not to do business with this company - it will only spell trouble!
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