Leasecomm has finally run afoul of the law and is canceling $24 million in judgments against consumers (story).

Gina of LaGrange KY (5/29/03):
Leasecomm sued my husband for a lease on a credit card machine his corporation was using at the time it was in business. When the Corp. went out of business the equipment was returned but Leasecomm sued my husband personally for a corporate debt. My husband was never notified until 4 years later (2003) when they called one Saturday morning @ 8 a.m. to inform us they were going to garnish his wages. He had to file personal bankrupty to avoid paying a Leasecomm bill he did not legally owe.

My husband is now 36 years old and will have this on his record until he is 46 all because they sued the officer of a corporation who shouldn't have been and made sure the requests to appear in court went to an obsolete address so he lost by default.

Barbara of Albany GA writes (12/18/01):
I started a business in 1996 and in 1998 my business was lost in a flood in our city. I called LeaseComm with this information and was told that I had a noncancelable lease and they wanted their money.

I overpaid them some months and underpaid them several months because I was having financial problems but I always thought that if you showed that you were trying to pay people would work with you, Not LeaseComm. This was June of 1998, leaving me with 19 months left on my lease (eighteen to be exact because I had paid the last month in advance, which was a total of $1136.34 that I thought was due them).

I stopped the bank draft because I closed the business account and started paying them by personal check I later learned that this created an additional charge being added to the outstanding balance. July & August of 1998 I doubled my payments and missed paying them in Sept and October and that was when my problems started to get out of hand. I paid them some amount each month from November 1998 until July 1999.

In August 1999 I received a statement from them stating that I owed them $234.54 on remaining payments and $523.43 on open invoice which I questioned. Keep in mind that I had paid them from July 1998 until July 1999 a total of $985.65 and the total amount due on my lease was $1136.34 prior to the payments and yet they still said I owed them $774.39. Each time I called I was never able to talk to the same person twice. The same with their letters, they seldom came from the same person and when I would call and ask for a certain individual I had to always start from ground zero.

I was totally confused so I stopped paying them. Well, they filed a suit against me in small claims court in 2000, in the state of MA, not for the $774.39 that they said I owed in August, 1999 but for a whopping $1625.11. There were additional charges added to that balance, sometimes as much as $30 a month for collection charges and most of these charges were during the months when I was paying them and I was doing most of the calling.

There was a charge of $50 for a letter that they wrote me and to top it all off a charge of $300 for Mass. Legal Suit Prep Fees, $5.48 for serving of process fee these charges were then added to the outstanding balance and then I was sued in small claims court and I still don't know what happend.

Here in Georgia the courts serve the papers by mail or processer. So when I was served by LeaseComm for small claims court I thought that it was another one of their cheap tricks and wasn't aware of the foreign judgement clause in my contract and didn't know what it meant anyway. I thought that they would have to sue me here in Georgia because here if you have a small claim against someone you have to sue them in the county where they live so I didn't take that seriously. My thinking was they will have to come to Georgia and I will get to present my case also.

Well what happend is they won their case in MA and they filed a foreign judgement suit here in Georgia and I have to pay them the full amount they asked for. I never denied that I owed them but I feel like I have been held up or had my purse snatched.

This is a very hard lesson but one every small businessperson needs to learn. Leases mean exactly what they say and most leasing companies will not make any adjustments for any reason. As for the venue of the suit, if Barbara reads her lease she will probably find that it specifies that all disputes are to be settled in Massachusetts courts.

Philip of Las Vegas (12/18/01):
I wanted a internet website. These group of companies told me they could do it in a turn-key operation. I paid for 7 months and no website so I stopped paying. Now I have a judgement against me and still no website.

Philip must pay the lease. His dispute is with whoever sold him the services, not the leasing company.

Harry of Independence MO (9/24/01):
I have a lease but have no need for it. I called them to have it cancelled, but they refused. I have never used the lease for any purpose. Leasecomm deducts $59.95 monthly from my checking acct.

We don't understand why Harry signed a lease that he had no use for but if he checks the language he will find that it is non-cancellable.

Tim of Louisiana MO (8/28/01):
December 6, 2000 I signed a lease with Leasecom for my web business through Themeware. 1/17/01 Themeware sent me an email saying they would no longer be in business. I tried to get my products for my website through Themeware from their so-called virtual warehouse. There's no product anymore there will be no money any more.

Lance of Colorado Springs (8/24/01):
I signed up with the Internet Toolbox who had AL Borlen from the TV show Tool Time pushing there product. It was software to build your own website. I built the site and requested a shopping cart service. The next thing I know I have signed a contract for 48 months for the software. I still don't have the software, but I have a ding on my credit report. I also have had some extremely harsh and threatning conversations with leasecomm.

Derek of Bartlett, TN, wrties (6/21/01):
On March 21, 2001 Leasecomm bought the contract from C.C.T Industries inc. The contract was a lease for a merchant account with a credit card machine. I was rushed by Mark A. Zone to sign the contract and everything was fine until Leasecomm started to excessively debit my business account. I tried to contact them and I got Serge Brodsky and he said that he would contact me and never did. I then tried to contact him and he was always busy or was not there.

This has resulted in a strained relationship with my bank. I had gotten this machine to start a business and because of their actions this has severely hindered me. I told both companies that we were going to be seasonal but they kept charging my account and as a result numerous overdraft in excess of $190 was accrued.

Aletha of Wichita, KS, writes (6/19/01):
I answered an ad in a newspaper for a job. I arrived at a seminar for a get-rich-quick scheme. I was young (18) and stupid. I have spent long hours remembering how stupid I was. I signed up to work with this company. I signed several papers, front and back. In the process I signed a credit check (I thought) for a company called Leasecomm.

Several days later my "mentor" put me on the phone with a man and told me to agree to whatever he said no matter what. I trusted her (no matter how displaced) and agreed to what he said. He asked if I had the equipment and I said yes. A few days later, I received $1400. I don't know what this was for and it was never explained to me. My mentor had me buy product with it to sell. The equipment turned out to be a credit card machine that I was leasing. I also discovered that I could not cancel the contract for 48 months. I am now severely behind on a payment that I didn't want in the first place. I would never have signed anything had I known that I could not cancel it for 4 years.

In the dealings with this company, I have become in debt far beyond what I can afford to pay. I am in college and trying to pay out-of-state tuition. I feel I was tricked into signing and agreeing to a contract I did not fully understand. This has caused severe strain on my family's economic capacity. I wonder every day if I have ruined my life and credit for this one stupid mistake of thinking I was getting a credit check when in fact I signed up for a credit nightmare.

I have reached the end of my rope and I don't know what to do next. I believe the company will sue me soon and I also known of another woman in the office I was at that did the same thing. I overheard her husband "discussing" that nobody told his wife that she couldn't cancel it for a very long time. This company is causing a lot of financial and emotional strain on people.

Clarence of New Bern, NC, writes (6/14/01):
For over a year I have been getting a bill from Leasecom every month. After three months I call to find out what's up with these bills. I'm told that I signed a lease for their equipment and that I had better pay my bill or face a lawsuit. I then told them that I truly didn't know what they were talking about.

Before the letters came I didn't know who this was, and why I began to get these bills. I'm told that I have some equipment that belongs to them and they are going to sue me for $5,000. A few weeks later an attorney from the company calls me, and wants to talk about a settlement.

To date I don't know whats going on or why. The only thing I know for sure is that I don't have what they want, or know what they're talking about. Leasecom has a judgement against me now -- a new lawyer from South Carolina called today to inform me that legal papers will be served this week.

Rae of Georgetown, TX, writes: (5/31/01):
I was duped and even after canceling with the proper companies in the legal time, I am being sued by Leasecom for what they say I owe. This is the worst company with gastapo collection tactics.

Hugo of Jersey City, NJ, writes (5/16/01):
I did understand at the time of my meeting with Mr. Galarza that I was leasing the credit card machine equipment. My problem appeared when I had called to find out about ending my lease. This is when it was explained that I was purchasing their equipment and that I had to keep the machine. I agreed to pay the remaining 23 months. They said that I had to pay for the machine and insurance coverage. I told the representative that I do not want a machine that I do not use and that I haven't used since November of 2000. I also had a problem with them when I requested a copy of my contract.

After several months of calling since February 2001, I finally sent a certified letter and received a copy within a week. I feel that their service are very poor and I do not feel that I should have to keep this machine. After all I did request a spanish representative, which I did receive, but they seemed to have left out that I had to keep this machine. Not once was this mention from Mr. Galarza. Not only that I also do not understand English and can not read or understand this contract. Mr. Galarza had gone over it and explained it to me. I do agree to pay them the remaining months in full at the amount of $49.95 per month. I do not feel that I should be stuck paying any extra fees.

Kia of Memphis, TN, writes (4/18/01):
I signed a contract with Leasecomm in 1999 but I found out later that I was not provided with the services that I was paying for. When I asked them about it they said it was my fault cause I didn't test the alarm. I paid for home monitoring services that I didn't receive and they refuse to cancel contract without me paying penalties.

Angelina of Los Angeles (4/3/01):
A friend of mine called me and asked if I could take over her lease for a Hitachi handheld computer because she could not afford it and the only way out of the agreement is to transfer it to someone else. I agreed because I like the computer. I began to research the computer and the company that is leasing it (I like to educate myself on anything I purchase) and I now believe that my friend has been cheated.

A few months ago she attended a seminar. This seminar was one of those "start-your-own-home-based-business" type things. During the seminar she was "lured" and/or "coaxed" into leasing a computer she didn't need. My friend already has a personal PC at home that is less than 2 years old. She told me that the reason she leased it was because it was "part of this home-based/internet business package program". I believe the program is a ruse to lease computers to low-income earners and people with poor credit history. The retail value of the computer is roughly $1400, that includes the accessories they provided. To date, she has not received any assistance in starting a home based business other than a few documents and the computer. I don't know much about the law but if it is not criminal to coax someone into buying something, at over three times the market value, under the guise of getting rich then it should be.

My friend is stuck with a computer worth approximately $1400 that she paid $3500 for. She is no closer to starting her homebased business. She is unable to claim the cost of the computer on her taxes; but even if she could, it would nowhere near compensate her for the excess costs she incurred by being drastically overcharged.

Maria of New York (1/2/01):
I agreed to a 48-month non-cancellable lease which started Oct 3, 1996 and ended Sept 3, 2000. The rate was $39.95/mo but by Sept 3, 2000 it had reached $48.95/mo. The total I paid was $2,277.60. Shortly after signing the lease I learned from the Dept of Commerce that there were fraudulent companies charging thousands for credit card terminals that could be bought outright for $600/$800.

I called Leasecomm and complained that I had not been told I could buy the equipment outright. Their answer was that I didn't ask and they didn't have to tell me. They said I was bound by the lease and so I decided to just pay them. I was told the terminal would be mine at the end of 4 years. I called Aug 2000 to confirm the date of the final payment and spoke to someone called Alda. She said I'd owe $198.93 after the final payment as the buyout agreement or I'd have to return the terminal. I asked her to send me a copy showing my signature that I'd agreed to that. She said she would.

Oct 2000 $48.95 was taken from my checking acct. I enlisted the help of a bank Mgr to get that credited back to my acct and called Leasecomm. I complained that I hadn't received a copy of the alleged agreement this time speaking to someone named Kevin. First he said no one named Alda worked there, then he agreed to send me a copy of the agreement. To this date I've received no copy at all. I've received instead 5 letters harrassing me stated that they were submitting a negative report on my credit record and demanding an additional $255.33.

Initially I was happy to have a terminal for my clients. The following month however I learned of an additional $2.70/mo for insurance. At years end there was a $1.00 increase. When I questioned that I learned there'd be a $1.00 increase each year for the entire lease. Each time I learned of these additional charges I'd get distressed because I was not informed beforehand to know what agreement I was entering into. Additionally when I learned from the Dept of Commerce that I could've bought the terminal outright for so much less I felt I was scammed. My business is now 10 yrs old. It was only 4 yrs old back then and I was struggling to keep it going so it was an economic hardship.

Kelleyene of Van Nuys, CA, writes:
This company has destroyed my husband's credit rating with eronious allegations that they were unable to charge my credit card for payment. They charge excessive fees for unexplained processing, they charge and get declined for charging two months at a time on my credit card (for which they are only authorized to charge once per month, $49.90). I do not use this card for any other purpose but to pay this lease off.

I have never received a "truth in lending act" disclosure. The most recent shows that they charged my card twice in Feb. in the amount of $30.00 each. My monthly payment is $49.90 per month. I have now been charged 4 $15 "credit card charge back" fees, on the exact same day for each. My most recent statement shows that they had already charged my card on 2/10, the "due" date. But on that same day they automatically charged the 4 fees. On this same statement they indicate that they had charged on 2/4, the first $30, then on 2/9 the second $30. As well on my statement, they are trying to charge me for March's payment with a "credit card charge-back" fee attached to that as well.

This isn't the first time I've had to go around in circles with this company. They have terrible business and reporting practices. I have spent numerous hours talking to a variety of agents and customer service managers, all reassured me this sort of thing would NEVER happen again. They also have a practice of sending out copies of the same letter, that they charge an upwards of $15 per letter for, out daily for three days in a row. The "say" that they make phone calls and leave messages, (we don't have an answering machine), then charge us $5 each phone call, sometimes 2 to 3 calls a day, according to the billing. I don't know if this is something worth looking into for you, but I have documentation for the majority of the problems that this company has caused me, all the excess fees, and conversations with agents.

Rebecca of Houston:
I bought a computer from Potomac Capital Corp. in Houston, who then sold the note to Leasecom. My computer has a two-year warranty and I am having problems. On my monthly bill is a number to call in Houston if having equipment problems. The company, In Touch America, does the service work for Leasecomm. Ron, at ITA told me he no longer can do any work for them because they owe him so much money and won't pay. I then called Leasecomm and eventually talked to Marie, who denied they owed ITA any money, denied I had a warranty, said the company I bought it from originally holds the warranty, anything but that Leasecomm holds the warranty. I need a computer now, this one continues to crash.

Stephana of Houston (12/5/00):
I was sold a credit card machine and a business in a box by a company called 2Xtreme. I paid $4000 for all of this and used a credit card. 48 hours later I received a contract from LeaseComm via overnight delivery and a phone call from LeaseComm saying I had to sign this contract and return it next day air in order to get my deal.

When I found out what they were doing (they had been taking monies out of my checking account as given by 2Xtreme) I sent back the package, unopened, unused and wrote the company. Then I received a lawsuit for the contract. I understand that you can say, well, you are in with a big crowd as far as the loss. This is not ok, it is obviously still going on. I see hundreds of postings just in my city alone and lawsuits. It looks as if the company is really in business to use a loophole in the law to defraud people and take their money. This is wrong no matter how you justify it. Sorry consumer affairs, but this is wrong whether it is stupidity or whether I had a gun to my head or not. If it were you or your mother, you might think differently.

I have spent now 3 years with harassments, in court and working to uncover this group. I have suffered severe depression as a result of their continued threats and harrassments. I have spent hundreds of dollars not to mention the thousands of dollars they already took from me.

Kyle of Burbank, CA
I have a balance due of $400+ on an account. I paid $200.00. The company filed a Small Claims against me for $1400 for the full amount. I attempted to settle this with them and they told me that they were looking at one of my credit card accts and they would settle for $1100 because that is what I had available on it.

Sherry of Loranger, LA:
I entered into a partner in business dealership through www.profitbig.com. I filled in the application at the website and profitbig e-mailed a response to me. They offered an e-commerce website w/a full search feature and a database of over 50,000 products with a full feature shopping cart for $89.90 per mo. for 4 years.

I accepted and Lori Carter from E-commerce called me the next day. She verified that I would get everything that I told her they offered. She mailed the papers and I signed and mailed them back. Well,that was the beginning of a nightmare.

They set me up with a basic website selling NWC computers. I e-mailed NWC and told them it was not the right site. They acted like I was stupid, and said they had no order for my site. After a few more e-mails I called Lori at E-Commerce, she said she would take care of it. I waited & waited, it was never fixed. I e-Mailed the CEO at NWC (Mr James Polino). He did not reply, but Steve Rhodes did. He said I could upgrade my basic site for $1800.00. This is the site I was supposed to get from the beginning.

Finally I called the sales manager at E-Commerce (Mr Joseph Kilgannon) and complained to him, he said he would fix it. Well,NWC added a few more products and a cart, but no search feature and certainly not the site I was supposed to have. I e-mailed Lori and told her to close the account, to no avail. I am getting bills from Leasecomm and Merchant Solutions for something I have not received.