MBF Leasing Overview
An Alternate Name of Northern Leasing Systems
MBF Leasing is an equipment lease provider and DBA of Northern Leasing Systems. In addition to Northern Leasing and MBF Leasing, the Northern Leasing family of companies includes Lease Finance Group, Golden Eagle Leasing, and Lease Source-LSI, LLC. As of this writing, MBF Leasing’s website is no longer active, but it appears that Northern Leasing still utilizes MBF Leasing as a business name. This is surprising due to the negative reputation MBF Leasing has built for itself through poor business practices, which ultimately resulted in a lawsuit and the creation of a large, independent merchant forum specifically built to warn business owners against using the company.
Tricky Non-Cancellable Equipment Leases
MBF 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. Like other equipment providers, the company’s services and products are often packaged within the merchant account contracts of credit card processors. Because of this, merchants regularly sign equipment leases through MBF without realizing that they are entering into agreements that are separate from their merchant account contracts. As with other Northern Leasing Systems companies, MBF Leasing’s contract terms are non-cancellable and usually run for 48 months.
Initial New York AG Lawsuit
In March of 2013, MBF Leasing and its associated companies paid out a multimillion-dollar settlement to hundreds of small business owners as part of an agreement reached with the New York Attorney General. MBF Leasing and its DBA, Northern Leasing, stood accused of creating a shell company called SKS Associates LLC, which it used to deceive merchants and withdraw money from their checking accounts after their contracts had expired. Although the Attorney General’s lawsuit ended the existence of SKS Associates LLC, the Northern Leasing Systems family of companies continues to operate and has grown into a very large network of equipment providers. Jay Cohen is listed as the CEO of Northern Leasing Systems (and, by extension, MBF Leasing).
Pending New York AG Lawsuit
In April 2016, the New York Attorney General filed a lawsuit against Northern Leasing Systems, Lease Finance Group, and MBF Leasing “for their fraudulent and deceptive practices that trap small business owners across the country.” The lawsuit alleges that Northern Leasing Systems and its subsidiaries knowingly deceived thousands of business owners into buying overpriced equipment and then abused the judicial system by filing suit in New York to collect on overdue lease payments. The lawsuit seeks to vacate default judgments obtained by Northern Leasing against business owners, enjoin the company and its owners from further deceptive practices, obtain restitution for merchants, dissolve Northern Leasing, and force the company to notify all three major credit reporting agencies that the default judgments have been vacated. This marks the second action that the New York Attorney General has taken against Northern Leasing Systems. Merchants who have been harmed by Northern Leasing Systems are instructed to file complaints here or call 1-800-771-7755.
For a full analysis of the primary company in this network, please see our Northern Leasing Systems review.
MBF Leasing Review Table of Contents
- Costs & Contract: MBF Leasing offers 48-month, non-cancellable equipment leases that often costs many times the purchase price of the equipment.
- Complaints & Service: MBF Leasing has received more than 700 public complaints.
- BBB Rating: MBF Leasing has an “F” rating with the Better Business Bureau and has received 430 complaints in the last three years.
- Sales & Marketing: MBF Leasing 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 MBF Leasing
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