Northern Leasing Systems Lawsuit Update 2020
In June 2020, the New York Attorney General won the 2016 lawsuit filed against Northern Leasing Systems, Inc, the parent company of Lease Finance Group, voiding thousands of fraudulently-induced credit card equipment leases. The ruling also vacates nearly 30,000 default judgments and bans Northern Leasing from engaging in equipment leasing, effectively dissolving the company. The Attorney General’s victory will also force Northern Leasing and its related entities, Northern Leasing’s chief executive officer, and others who engaged in the fraudulent scheme to provide restitution to small business owners who were fraudulently induced into financing leases for credit card processing equipment from April 1, 2013 through the present. Northern Leasing is ordered to dissolve 60 days after providing relief. Restitution amounts are to be set by the court at a later date. Small business merchants are not required to take action at this time in order to receive restitution.
Part of the Northern Leasing Systems Network
Lease Finance Group is a merchant account equipment lease provider that goes by several alternate business names, including Northern Leasing Systems, MBF Leasing, Golden Eagle Leasing, and Lease Source-LSI, LLC. Lease Finance Group is not a merchant account provider; rather, it leases credit card processing equipment like terminals, printers, barcode scanners, and other point-of-sale technology. Lease Finance Group’s equipment leases are often packaged with the merchant accounts of payment processors, meaning that business owners are often unaware that they are signing up for service through multiple companies. The company is headquartered in Chicago, Illinois at 65 E. Wacker Place, Suite 510. Jay Cohen is the Chairman and CEO of Lease Finance Group’s parent company Northern Leasing Systems.
For a full analysis of the primary company in this network, please see our Northern Leasing Systems review.
Lease Finance Group Review Table of Contents
- Costs & Contract: Lease Finance Group offers 48-month, non-cancellable equipment leases that often cost many times the purchase price of the equipment.
- Complaints & Service: Lease Finance Group has received more than 750 public complaints.
- BBB Rating: Lease Finance Group has a “B” rating with the Better Business Bureau and has received 45 complaints and 59 reviews in the last 3 years.
- Sales & Marketing: Lease Finance Group allows independent sales agents to package its equipment leases with other merchant accounts and has received an extremely high number of merchant complaints about its sales practices.
- Rates & Fees: How Merchants Got The Best Rates With Lease Finance Group