Northern Leasing Systems Lawsuit Update 2021
In June 2020, the New York Attorney General won the 2016 lawsuit filed against Northern Leasing Systems, Inc, the parent company of Golden Eagle Leasing, 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.
In February 2021, the Supreme Court denied the Northern Respondents’ motions for discovery and a trial or evidentiary hearing, and denied the Attorney Respondents’ motion for summary judgment dismissing the petition as against them, effectively upholding the 2020 decision.
Additionally, according to EINPresswire, in November 2020, the OAG brought forward another, separate proceeding after discovering that Northern Leasing’s owners and officers had created two new entities — NLS Equipment Finance and Leasing Expenses Company — to continue defrauding small businesses using the same scheme barred by the court in the prior litigation, as well as to continue collecting on leases rescinded by the June 2020 court order.
The companies found liable by this ruling — also issued by the New York County State Supreme Court — were operated by former Northern Leasing Chief Financial Officer Ariel Schachter and former Northern Leasing officer Sara Krieger, and were owned by trusts that benefited the families of Northern Leasing’s owners, Jay Cohen and Leonard Mezei. The court found that these companies had “risen on [Northern Leasing’s] ashes” in an earlier December ruling that granted a temporary restraining order barring them from collecting on any equipment leases. In February, 2021, New York Attorney General Letitia James issued a decision and order in February 2021 effectively shutting down Northern Leasing Systems’ alleged attempt to continue to enforce illegal leases, including those voided in the 2020 decision. The parties named in this proceeding include Leasing Expenses Company LLC; NLS Equipment Finance LLC; Leonard Mezei; Ariel Schacter; Sara Krieger; Jay Cohen; a Jay Cohen Family Trust; Fieldston Capital LLC; and JS Ventures Holding LLC.
Despite the extensive and public legal action against the company, Northern Leasing Systems appears to be still operating at some level, as per a promotional article from March 18, 2021 celebrating the company’s 30th anniversary penned by founder and president Jay Cohen posted to PRWeb, a promotional website. Additionally, some former customers report to the BBB that they continue to receive bills from Northern Leasing Systems, including for properties that the customers no longer own. According to some comments from customers, Northern Leasing Systems no longer answers communications, though they continue to list a phone number on their website.
An Alternate Name of Northern Leasing Systems
Golden Eagle Leasing is one of several business names used by the equipment lease provider Northern Leasing Systems, whose Chairman and CEO is Jay Cohen. Others affiliates include MBF Leasing, Lease Finance Group, and Lease Source-LSI, LLC. Golden Eagle Leasing was originally a subsidiary of Hypercom, but was sold for $30 million to Northern Leasing Systems in 2003. The company has since been wholly absorbed into the Northern Leasing brand, but it appears that some leases continue to be sold under the Golden Eagle name. Northern Leasing does not seem to maintain an independent website for Golden Eagle Leasing at this time.
A Tricky Equipment Leasing Company
Golden Eagle Leasing is not a merchant account provider; rather, it leases credit card processing equipment like terminals, printers, barcode scanners, and other point-of-sale technology. As with Northern Leasing and Lease Finance Group, Golden Eagle’s equipment leases are often packaged with the merchant accounts of payment processors, meaning that the company’s customers are usually unaware that they are signing up for service through multiple companies.
For a more complete analysis of the primary company behind this network of lease providers, please see our Northern Leasing Systems review.
Golden Eagle Leasing Review Table of Contents
- Costs & Contract: Golden Eagle offers 48-month, non-cancellable equipment leases that often cost many times the purchase price of the equipment.
- Complaints & Service: Golden Eagle has received more than 700 public complaints.
- BBB Rating: Golden Eagle has no rating with the Better Business Bureau.
- Sales & Marketing: Golden Eagle 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 Golden Eagle
My merchant service company from Irvine California uses this company for its cc equipment. Do not use this company. I paid $40 monthly for an inexpensive cc machine for 48 months. At he end of the lease, they demanded an extra $150 restocking fee. I leased many automobiles, copy machines, company equipment and was never asked to pay a restocking fee. The fee was mentioned in the fine print of the Merchant Services contract. So read the contract for any hidden fees. You will find them when dealing with Merchant Services and their sale rep will not mention them. Stay away.
This is a terrible company. One of there sales Reps Jack Bridges sold me this equipment. He said it was a month to month lease. No contract for the equipment or the processing. Just a 60.00 monthly lease. After many years of using there services si find out that they been taking out 89.00 A month. You try calling them and you get no answers. I just retired and been trying for almost 6 months to cancel there service with no luck. I called jack Bridges he won’t return my calls . They took out the 89.00 while the business was closed. I Retired. I had to cancel my bank account for them to stop taking out money. Now there sending be statements saying I owe them back payments. How can a company get by doing business like this. I called the BBB got no help there. So all I can do is put this on the internet. And I hope people read this and stay as for away from these people as possible . there a horrible company. Ronnie Palmisano
This post will help: Cancelling a Merchant Account Without Paying a Fee
-Phillip
This company is horrible! We terminated our lease YEARS ago, and were unaware that they were still taking money from our bank acct! When we told them we had not used cc “machine” in MANY years, they proceeded to harass by phone and by mail, threatening OUR credit! We have been in business since 1945, and our credit is spotless! This company is the worst!!! BBB score- F Our BBB is A+! We have been fighting them since last year! Our lawyer will sue them. This is ridiculous.
This post will help: Cancelling a Merchant Account Without Paying a Fee
-Phillip
This pseudo-company is a complete scam. Never sign a contract for any of their equipment. We signed a lease-to buy agreement with what turned out to be an independent agent representing them in 2008 for a 4 year contract which then would ownership of the equipment. Foolishly, we allowed them to take $40.15 a month from the business checking account. When we moved our business in 2012, we tried to contact them to finalize the arrangement, and since we had paid over $1900 for a $400 piece of equipment, we thought we were through with them; however, they continued to charge our account monthly. We tried 4 different times to contact them and have them stop the withdrawal to be told that the contract was still in force. They were impossible to get hold of and if you did get someone to answer the were totally rude and unhelpful.We stopped payment on our account only to have them change the amount to $40.17 and continue collection. We finally had to completely change our bank account to stop payment. This finally led them to contact us today and if we paid a one time payment of $175, they would close the account. We agreed to this total ripoff just to get rid of them. If we didn’t pay that they would leave the contract in force and report it to the credit agencies. Never do business with this company or any of its variations and warn others to avoid.
This post will help: How to Report Bad Credit Card Processors
-Phillip
They are threatening me. I had billing after equipment was returned. I was attached to a rip off merchant service paid until merchant service contract was over only to find equipment still had to be paid. Not what was told to me. I blocked payment and am constantly being harassed over less than 400.00. I do not or ever will feel I owe them a penny. I paid per month for over a year without even having the equipment or service merchant. And the fee kept going up from the promised 65.00 per month for nothing towards the end of contract these companies were taking over 200.00 per month. I simply blocked them from taking any more money and am now being harassed with very scary threats.
From The Editor
This Post Might Help: Cancelling a Merchant Account Without Paying a Fee
Avoid!!! After 2 years having received my equipment, I get charged a $150 restocking fee. Called and finally spoke to someone after 5 transfers and a 20 minutes wait who explained this. Wanted payment today. I said next month. Said I have to call back in October and hung up. Lower company with poor personnel
From The Editor
This Post Might Help: Cancelling a Merchant Account Without Paying a Fee
Not sure why they keep calling me. asked them to stop. Have know idea how to make it stop. Calls saying they are with a lawyers office when asked which one they hang up.
From The Editor
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Never sign anything with this company – they do not return phone calls and make excuses for any issue you bring up to them. They are a scam
This company is terrible. They are taking money out of account that I have not given permission to do so.
they are not even providing service.
Golden leasing company work with merchant service and charge thousand of dollars for many years for equipment that cost less than five hundered dollars and they profit by not allowing you to cancel the lease which you never know you had with them as they tie up with merchant service and they do not disclose these policies. Please be careful and do not lease with them or else you will lose thousands of your hard earned dollar to these folks who are not in right kind of business.
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You are so right. They have harmed by business under false salesmanship. I need to get out of this and don’t know how to go about it. They are the lowest of the low.