I have recently opened a small second hand business that is my sole support. After a year of being in business, on September 1 Gene Olson came into my shop and told me he could save me money on my credit card processing. Gene claimed to be with iPayment and that he could cancel my other contracts and save me money on my processing.
I was nervous about canceling my other contracts, so before I would sign the contracts with Ipayment Inc. And Northern Leasing Systems, Gene assured me that he had settled everything with my other contracting companies and that it had "cost him more than he thought it would" and that he could recoup some money by selling my other (better) equipment which he took with him and I haven't seen since.?
In addition, because of my reluctance to sign the contracts, Gene Olson also signed an agreement with me personally that he would transfer all equipment and service fees into his name in the event I was not happy with the services.? The merchant services contract and lease with Northern Leasing had both been altered after I signed them.
After I discovered he had not canceled my other contracts and I was paying for 4 services, I tried to contact Gene with no success. I spoke with the person named on the Northern Leasing agreement as the previous "owner" of the equipment Gene brought to me - Mike Biehl (509-362-7572) who had signed the agreement as Vendor's Bill of Sale. He told me that he is Gene Olson's brother-in-law, that he “works” for Gene Olson, and that "you can't pick your relatives". He was evasive as to how he got this equipment and couldn't remember the name of the business he had when he used this equipment. He told me that Gene Olson has now moved to Grants Pass in Oregon and is working with iPayment and that John Tortola works for Gene Olson. Another business owner in Spokane that was defrauded by Gene Olson has the name of John Tortola as the previous "owner" of the equipment provided to her by Gene Olson. I expect my equipment is now being leased to another small business owner.
After one month of using the equipment and merchant services (early November) I received a bill from my previous merchant service, Payment Systems.? I called them and was advised that Gene Olson had not contacted them and that I was still in contracts with them and the equipment leasing company.? I immediately tried to contact Gene Olson at the numbers on his business card - both personal numbers I had for him which were no longer in service and I called John Tortola (the sales representative's name that was put on the contract with iPayment after I signed...) out of Portland (541-761-5450) and John assured me that Gene would be in to sort things out in the next few days.? I also sent Gene Olson an email at the email address on his business card.
I received a phone call from "Tim" from the iPayment office in Portland responding to my message left at the Portland office of Ipayment.? Tim advised me that Gene Olson was not a representative of Ipayment and that he had been fired some time ago.? Tim's # is 503-987-0277.? Tim did advise me to write to iPayment to get the matter resolved, which I did and have received no satisfaction. I have also filed a complaint with the Attorney Generals in Washington, Oregon and California about iPayment and who have written iPayment with no response. I filed a complaint with Spokane Police and they have been unable to locate my equipment or Gene Olson. My searches have revealed that Ipayment Inc. Is not licensed in Washington, nor is there a City business license.
I have been dealing with calls from New York, collections for Northern Leasing and did provide them with an Affidavit of Fraud and they have advised me that after reviewing matters they believe they have a valid contract and will be pursuing me in court.
I believe that the contracts with iPayment and Northern Leasing were fraudulently obtained and are not legal. I am aware that there are lots of other businesses defrauded by iPayment and Northern Leasing and I'm at a loss what to do and would like help in dealing with these companies!!!
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