I have been stuck in a 48-month "non-cancellable" lease with Lease Finance Group (a division of CIT Financial USA, Inc.) for a credit card machine terminal that I could have purchased out-right for $250-$500. As a new small business owner, I was not yet aware of their fair market value and got suckered into a lease for 10 times the value.
I was promised a package deal that consisted of: a free check service, free custom designed business cards and a free customized & designed website. I felt the value of the lease lay in the customized cards, checks and website.
I made several attempts to contact Gloria Gray, the Account Executive, about my website and business cards. I was alwasy referred to someone else. The web development individuals there were less than helpful and after a few attempts to work with them on my website, I gave up and abandoned the prospect of getting my business cards, site, or checks.
After 1 year of paying the lease, I called to cancel it only to be told that the only way to get out of the lease was to get someone else to take over my lease or pay a buy-out amount of $2,107.56. I mentioned that I would return the equipment to them seeing as I had already paid more than it was worth. I was told that if I did that, I would be turned over to a collection agency for breaking the lease.
I recently moved out of state and went out of business, so I closed my business bank account. Once they found that they couldn't automatically collect on the lease, I began to receive several calls daily from them. To make matters worse, I had given them my cell phone number as a contact number and they continue to use it to this day when my payments are late. Even when I tell them that a check is in the mail, they still call. One time, I told them to please stop calling and they hung up on me. At other times, I get calls and answer them only to hear music on the other end.
It's been 2 years now that I've been paying for this equipment. I continue to make the payments for fear of hurting my credit score. My payments are currently $57.29 per month which is made up of the lease payment ($49.99), a $2.50 fee for not having the terminal insured (ridiculous), sales taxes ($4.05) and a property tax management fee ($. 75).
I want others in my situation to know that they're not alone. What CIT/Lease Finance Group/Freedom Charge Merchant Services is doing to unsuspecting business owners is deceptive and wrong and should therefore be considered illegal. I have read the advice in this site and will also take similar action in writing to the Attorney General of Illinois.
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