People get away with things. I signed a contract with Northern Leasing Systems, Inc. For a credit card processing machine. I was (am) a sole proprietor and in the first 2 years of my business I was able to support that overhead until my health failed and I had no insurance. To reduce the COGS, I terminated my contract with Northern Leasing Systems, paid the penalties and returned the equipment.
The company told me to return the equipment, but did not give me specific instructions for the procedure. I returned the equipment to the same address from which it was shipped (to the distributor in Chicago IL). I used FedEx and tracking but the supplier signed off with a fraudulent signature and kept the equipment. Then Northern Leasing came back with a ding on my credit report for $1400, stating that I defaulted on a contract and they "wrote it off".
What actually happened was, I paid IN FULL, and Jackie Vinceslao released and discharged me of all lease obligations after she threatened to ruin my credit and prosecute me for theft. I paid it within 30 days.
So here it is, and my business is very solid and sound. I apply for a loan and what happens? My credit was denied because Northern Leasing Systems had the ability to walk away and not clear my debt with the credit bureau. How nice of them.
First they literally stole the leased equipment then they threatened me and forced me to pay for it, and last but not least, they left me with a negative credit report that delayed a much needed loan by a least 30 days. The moral of this story? Never do contract business with a company that is 1800 miles away and uses a third party supplier for their equipment. They can screw you to the wall and walk away.
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