Back in Sept. 1999, I switched to a new Credit Card Processing System. They informed me that my equipment was outdated and I needed to upgrade to a Tranz 460. The sales rep., JUDITH GAYNOR, informed us that we could lease the equipment, that would cost us about $1500.00, for only $52.99 a month over a 4 year period.
It sounded like a good - so after all the other paper work was filled out she gave us the lease agreement that would allow the lease company to withdraw $61.00 a month from our bank account. Her exact words were "Here - this is just your lease agreement - (as she points to the amount) saying you pay $52.99 a month (and then points to the terms) for 48 months."
In March of we closed our old bank account after we noticed $61.00 being drawn from it monthly. Immediately, we got a phone call from CIT Lease Finance Group - stating we owe them money. This in turn caused us to do some research. Here is where I have a problem.
First. The equipment is not worth $1500.00. You can buy it at merchantwarehouse (dot) com for $369.00.
Second. The term of the lease will have you pay $2928.00, thus netting the lease company a profit of $2559.00 (You pay for the machine 8 times.)
Third. THE LEASE DOES NOT END AFTER 48 MONTHS! You lease a car, the dealership notifies you about the termination of the lease.
You lease an apartment - the landlord notifies you when the lease is to expire. You get a lease from CIT - it is your responsibility to notify them, within 30 days, to agree on a buy out price for the equipment (remember you paid for it 8 times already). If you fail to notify them, they will continue to rent you the equipment for the $61.00 a month. They knowingly put this clause in the lease since most people will forget about the lease!
fourth. When the CIT Collection Specialist contacts you, their goal is to make sure you keep the equipment and the lease in tact.
They are very confrontational, which I did not expect from a large corporation. When I asked why I was not contacted about the lease expiration, they replied - "Did you read the lease?". I told them I would gladly continue to pay their $61.00 a month, if I could get a statement in writing that I was robbed, ripped-off, and taken full advantage of by them. Once again, knowing they legally got me, he replied - "Sir why did you sign the lease?" As you can see we have paid an additional 6 months beyond the terms of the lease (now making it paid for 9 times). Since most equipment leases have a $1.00 buy out at the end of the lease, it would be safe to assume - we have purchased our equipment with a rebate due of $365.00!
I'm sure there are thousands of people out there who signed the same lease not knowing the implications and I wish I could inform everybody of their intent to deceive all potential customers.
I also disagree with David - Mishawaka, Indiana rebuttal to Anissa's letter. One, CIT words the lease we signed not the person selling the processing system. It is their terms that we sign to agree too. Second our issue is with the lease company, since more times than note the rep. Only works for the company no more than a year or two. I do agree that you should read everything before you sign it, which is why CIT has this lease written the way it is. They know 95% of the people who sign it will not read the fine print nor will they comprehend what it actually contains nor do they have time to have a lawyer review every agreement they sign. CIT know that if the latter happened nobody would ever agree to sign such garbage.
Russell
Oakland, New Jersey
U.S.A.
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