If you Google this company, you'll find more than just my word on the subject. They're scam artists. And I send them many virtual stabbings with my evil thoughts.
I started my business in earnest, and set up a merchant account, in 1999. The company I use is separate from Northern Leasing, who provides the equipment needed for running credit cards.
Although they swear I do, I've got no written agreement with them. They SAY I do, but all I've got is a mention of them and the fact that I would be leasing my machine for $36.40/month. Being stupid, I didn't realize that $36.40 is around 1/4 of what the machine costs. You can buy one used on eBay for $50, or new between $100-200.
Nevertheless, I signed up for the lease. $36.40 x 48 = $1747.20. I'd say that's more than enough of a profit margin for them, no? But that's not all.By I was entrenched in the Rob stuff, and as I deteriorated over the years, I did nothing about that monthly charge. It wasn't until this summer that I finally called them, got a bitchy, chilly reception, then sent them a nasty email.
They simply continued to make the deductions. A lot of these were putting me in the red and costing me bounce fees.
So now DOUBLE that $1747.20, and add some, and THAT is what I've paid for this machine. 35 times what's it's worth - at least! Maybe 70 times more, if you consider its age!
During the phone call, I was told I could buy it out for about $200. I refused. AFAIC, I've already paid that $200 and then some.
I let it go a few more months, then finally decided it was time to really do something. I talked to my bank, and the woman who took my call was EXTREMELY helpful. She put a stop-payment on this auto-debit (ACH), and didn't charge me for it. She set me up with a new account, so that I can move legit deductions to the new account, then close the old one, locking Northern Leasing out for good. The stop-payment is good for six months so, although I'm behind on the weaning off of this old account, I figured I was still in the safe zone.
Last week, I got an invoice from Northern Leasing. They were charging me for two months they couldn't debit, plus an extra $5 per month because it's no longer an ACH. I called and told them we were all done and this invoice needed to go away. The bitch on the phone wouldn't hear of it. She was all about my paying $200 to buy the machine out. I said I've already retroactively done so, but she wasn't buying it, of course. I talked about small claims court. She said to go ahead.
I then wrote the company. As was the case the first time I emailed, I received no response. Except for this: a quiet debit of $211.12, which the stop-payment didn't catch because of the amount. Clever! F*wads. I've called my bank, gotten the information I need to dispute this and have already written a letter and am about ready to fax.
But this won't be the end of it. No. They'll invoice me. They'll threaten me. I'm going to have to bring them to small claims. I don't have the time for this, but as long as I do, I think I'm going to demand a more than reasonable refund so that both parties can be satisfied. The way I see it, they've still made an enormous profit - more than most lease companies and ANY direct sales company, so that should make them happy. As for me, I will still have overpaid in a big way. But maybe I can get $1500 back?
Wish me luck!
I will always be interested in fighting these people. I plan to take them to small claims. If anyone is interested in including me in any sort of effort against them, please let me know here (or email me through my profile if you can do so.) I've put a lot of money into these jerks, and I'm about ready to take some back.
Cape Cod DesignYarmouth Port, Massachusetts
U.S.A.
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