I am making a complaint for a friend so I am copying and pasting part of his affidavit.
2. I dont recall the reasoning, but the IMS representative made it seem that if I didnt sign all agreements and send them in immediately, there would be a prolonged delay in being able to set up my account.
3. On or about May 19,1998 I received numerous agreements by fax to sign and fax back to International Merchant Card Services (IMS), in order process credit cards for my company Graphix Plus.
4. This was the first time I had ever set up a merchant account for my small business and was unaware of what was customary for the set-up of such an account, and so I was very dependant on the representative of IMS to present all agreements in a straight forward and honest manner.
5. The equipment I received was a single floppy disc containing software called Softpay. Similar software products were available to be purchased on the open market for $290. The software was designed to enable me to verify credit cards via a dial-up connection. I was not offered the ability to purchase the software outright, neither was I offered any alternative software programs.
6. Further, I was unaware that I was actually leasing a software package. I was simply faxed forms to sign after the representative for IMS asked me whether I wanted to do the transactions by an actual terminal in which to swipe the card through or with a dialup service. I understood by the IMS representative that I was paying for a service in the amount of $39 per month.
7. Upon receiving by Federal Express a copy of the signed document I had submitted via fax, I was alarmed to find what I believed from my best recollection and belief, that the documents looked like they had been altered with white-out and the rates changed from what I had signed.
8. The rates which we had verbally agreed to and what I believed were on the original document that I signed and sent by fax were 1.86%, and it looked that the copy had been amended with white-out to read 2.39%. A copy of the merchant processing agreement is attached hereto as Exhibit B.
9. Further, the Lease Agreement had a backside which was never supplied when I originally signed or even when copies were provided several days later. The second page is attached as Exhibit A in the plaintiffs complaint.
10. The first Merchant Statement I received on or about June 3,1998, revealed that I was being further charged as a non-qualified transaction rate of 3.52%.
11. I made numerous attempts to resolve my concerns with IMS, but no one would return my phone calls.
12. Without the ability to resolve the billing errors, I was forced to close my checking account and find a new merchant service provider which rendered the software useless.
13. I performed a total of four credit card transactions, from May 21,1998 through June 1,1998 with a total sales of $1,613.44. A copy of the three Merchant Statements for the months ending May, June and July of 1998 attached hereto as Exhibit C.
14. On or about August 28,1998 in response to an Invoice from Northern leasing, I spoke to David Allen who explained what I understood was that they had purchased IMS and that all agreements with them were voided. Upon Mr. Allens approval, I returned the software by UPS in like-new condition with original packaging. Upon my information and belief he was releasing me from any future obligation. A copy of the receipt is attached hereto as Exhibit D.
15. A few days later, I received a letter from Mr. Allen, demanding payment of the entire lease. At this time I received both pages of the lease agreement with a copy of the Bill of Sale between IMS and Northern Leasing Systems, Inc., for the sum of ten dollars. A copy of the Bill of Sale is attached hereto as Exhibit E.
They are now suing him for approx $2100 in NY courts (he lives in TN) plus interest. Further, they were taking $45.17 from his bank account... Not $39.
We are persuing a class-action. I encourage everyone who has had dealing with this company to file a complaint with the Federal Trade Commission. This fraud is exactly like the Leasecomm fraud which was just settled with the FTC for 24 million.
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