COMPLAINT:
LeaseComm
LeaseComm.com website states it is a lending institution that finance eMerchant Accounts, in addition to other products with values ranging from $500 to $10,000. LeaseComm boast that they are a leader in the microticket industry, when in LeaseComm.com is a subprime lender which extends credit at higher rates and higher fee loans to persons who are considered to be higher risk borrowers. LeaseComm is not only a subprime lender, but is debt collector. As a direct quote from the company's president, "The underlying product is not relevant... Collecting the receivable is what is relevant. I make my money by collecting.", Peter Von Bleyleben, president and CEO of Microfinancial Inc. (LeaseComm)."* LeaseComm.com participated in the OLE M-L-M Scam by having full knowledge of what type of company OLE operates, as OLE's retention is in operation of and endless chain of recruitment of new distributors and not specifically on the sales of its products. LeaseComm.com has been with OLE during several phases of faulty/over-priced product sales & failed recruitment. LeaseComm.com has financed the over-priced poor quality computer promo, then the over-priced eMerchant Account promo, and now LeaseComm.com is currently financing OLE's 2-website promo. LeaseComm.com joined together with OLE to push the Truth- In-Lending statues as far to the edge as possible in the creation of their contracts of adhesion. LeaseComm.com & Ole contracts are so inconceivable an unconscionable that they are a full misrepresentation of the truth and borders federal & state fraud.
a. LeaseComm.com assumed we were a poor credit risk without running our credit report,
consequently signing us up with a lease with an unspecified fair market value.
b. LeaseComm.com failed to disclose its interest rates.
c. LeaseComm.com induced the OLE accounts to lease a questionable Merchant Account that is
grossly over-priced and the product it calls an eMerchant Account was discovered to be a virtual password only. We have not received anything: no software, no equipment, nothing! What is the $89.95 per month for 48 months for?
charges its customers $495.00 as a one-time fee, then monthly charges, but, with the blessings of OLE, signed us with LeaseComm charging over $4,317.60 over a 48 month period! Especially when other online pay systems are free to join with little to no monthly cost such as : Paypal for FREE, Yahoo Pay Direct for FREE, and website hosting companies like Homestead.com are FREE, while others charge $15.95 and up.
hype to bind unsuspecting entrepreneur hopefuls via their personal/consumer credit. Most of the distributors/leasees have not been set up for legitimate business, yet LeaseComm suckered us into signing a commercial lease, then reports delinquencies to our consumer credit.
b. LeaseComm.com' s collection tactics are to continually harass leasees with phone calls. Our first few
phone calls were irate and accusatory with statements such as you made the loan, why don't you pay your bill, this is a commercial loan and I can call you anywhere and as often as I liked! The collector's voice was fast, high-pitched & condescending. We were also informed that every time he called we will be billed $7.00 for collections. We asked if he could just stop calling and take the collections to the next level, COURT. He continues to call once a twice a week, to which our opinion have not change, we will not pay until a court hears our claim. We had to work on calming him down then advise him that we will be taping all future phone calls. The calls are now more manageable.
then proceeded to debit our personal checking account for commercial lease payments.
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checking account. LeaseComm.com induced us to commingle personal & business funds, by deducting its fees from our personal checking account. Especially since their contract requires initials to approve them deducting from our business checking account.
Exchange.com to lease us a virtual password only, when some distributors received equipment and the password. We did not choose this software solely as an eMerchant account. Initially, we were told we would get equipment as well.
beginning in October 2000 to May 2001. LeaseComm.com thereby contributed to our Leasing Account delinquency, as we felt we were not going to pay for a product we did not have nor use.
e. Even now, LeaseComm.com has full knowledge that we OnlineExchange.com is in breach of contract with us, but maintains we signed a lease with LeaseComm.com and we need to pay, irregardless if the products/services were provided or not.
a. LeaseComm.com failed to have qualified representatives at the meetings to explain it's actual
products and cancellation policies. The LeaseComm.com contract did not provide a 3-day notice of cancellation, nor were we given a copy of said contract, as they had to send them in. We never received a copy, unless we asked. We signed & gave a money order of $89.95 on 6/9/00 and mailed them in, eCommerce Exchange then back-dated their signature to our date and stating LeaseComm .com lease commencement date is 07/06/00, then LeaseComm person signs on 08/01/00, yet deducts from our personal checking account on 07/10/00. It appears their paperwork dates are fraudulently in order, as we were never informed with a copy of same nor was their a representative their to assign these numbers & dates.
b. The Opportunity Meeting is not the proper forum to adequately review the lease. The products leased are not received in 30 days, hence 3 days is not enough time to consider the product, etc. Even then, the Upline trainers/distributors are coercing the new distributors to focus on recruiting rather than using the products purchased.
c. LeaseComm.com allowed unqualified OLE trainers/distributors represent the sale of its
lease. The OLE trainers failed to address LeaseComm.com policies and procedures.
d. The OLE trainers/distributors possessed a conflict of interest when selling the LeaseComm.com lease, as they are more interested in recruitment, rather than the retail sales of products & leasing of same.
e. LeaseComm.com failed to advise us that the lease they boasted of as transferable is not
without conditions, that transferee must apply & be approved by eCommerceExchange.com, then pay an additional $495.00 (Where is that in BOLD WRITING?). eCommerceExchange.com also stated we need not be affiliated with LeaseComm to have the eMerchant Account for $495.00+ monthly bankcard serving fees.
f. LeaseComm.com failed to disclose that the lease is really not transferable because it
does not attach to anything. We later discovered we are leasing a password only.
a. LeaseComm arbitrarily bound the OLE distributors to a commercial lease, which affects our personal credit, not our commercial credit. Their contract stated they would deduct payments from our business checking, but they deduct from our personal checking.
b. LeaseComm.com joined together with OLE to lease to all of OLE's accounts (distributors & retail sales) as high-risk creditors at a rate that they have failed to disclose even now.
c. LeaseComm.com failed to inform us that we are leasing a virtual password and that at the end of the 48-month lease. LeaseComm.com failed to disclose that at the end of the lease we would then given an opportunity to purchase the PASSWORD outright.
without us having a business license or business checking account.
only prominently displays costs claims of low monthly payments of $89.95 for 48 months.
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c. LeaseComm.com misrepresented its lease, as it does not provide a fair market value of the product it is leasing, to date LeaseComm has failed to supply a break down of products & finance rates of the lease.
The lease contracts are very vague and in small print. The lease doesn't spell everything out, what we
are buying and from whom. The fair market value, the front-in cost, nor the final buyback price is anywhere to be found on the contract. LeaseComm.com failed to adequately disclose the front-end lease charges at the signing of the lease, verbally nor in the contract, even now upon inquiry. LeaseComm.com and OLE collaborated to focus on the hype of low monthly payment of $89.95 for a 100-Page website, limited website hosting, and a Merchant Account.
a. LeaseComm.com is in violation of Electronic Fund Transfer Acts, as we never gave LeaseComm.com permission to collect funds from our personal checking account. LeaseComm.com initially had us initial the contract form approving that LeaseComm may deduct payments from our BUSINESS checking account, yet, we did not have a BUSINESS checking accounts. eCommerceExchange.com then gave LeaseComm.com our personal checking account info to have a commercial business deductions debited.
Injurious Conduct by financing high risk creditors then seek to destroy the credit them with a
predatory collection plan, which includes immediate lawsuits, they average 16,000 or more per year, by suing in
the state of MASSATUCHETTES and when the leases can not report, LeaseComm hire attorneys in consumers
state to collect judgement. LeaseComm.com raids their leasee's checking account once or more per month when
they fail to pay, Even in personal bankruptcy, LeaseComm forces the consumer to pay on a COMMERCIAL
LEASE by upholding its judgement, even when the product has long been returned and/or never fully used.
a. LeaseComm.com is unfair & unreasonable in its collection practices. As reported in one of several class-action lawsuits: " The complaint further alleges that Leasecomm has sued thousands of its customers in Massachusetts pursuant to the forum selection clause in its lease agreements, although "few customers reside or have a place of business in Massachusetts or any other New England state at the time of signing the lease agreement or at the time of being sued by Leasecomm in Massachusetts." 99-4177-E Parties: LARRY A. CLARK & others(1) vs. LEASECOMM CORPORATION & another(2) County: MIDDLESEX, ss. MEMORANDUM OF DECISION AND ORDER ON DEFENDANTS’ MOTIONS TO DISMISS
a. As a lender, LeaseComm.com must register with the state of California and have done so. LeaseComm.com also has Agent of Service in the state of California, but at every turn, has attempted to delay the process, first by denying there is an agent for CA, then confirming their Massachusetts address for actual service.
REMEDY:
We are petitioning the court to have LeaseComm render the following:
remedies, as these companies have never fully cooperated and it has been a
constant unraveling of the truth.
payment from our credit reports and send us a copy of their actions via certified
US Mail as soon as possible.
III. Pay all related court cost in this claim, totaling: ______________________
*A Walk in the Park
, This story is reprinted from the June 21, 1999 edition of Specialty Lender Weekly.Page 3 of 3