An Alternate Name of Northern Leasing Systems
MBF Leasing is a merchant account 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 As of this review, MBF Leasing’s website is no longer active, but it appears that Northern Leasing still utilizes MBF Leasing as a business name.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.
Northern Leasing Systems Lawsuit Update 2020
In June 2020, the New York Attorney General won the 2016 lawsuit filed against Northern Leasing Systems, Inc, voiding thousands of fraudulently-induced credit card equipment leases. The ruling also vacated nearly 30,000 default judgments and banned 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, including MBF Leasing, 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.
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 continued to operate and had grown into a very large network of equipment providers until the New York Attorney General filed a lawsuit in April 2016 and reached a settlement in June 2020 effectively dissolving Northern Leasing Systems and its family of companies. Jay Cohen is listed as the CEO of Northern Leasing Systems (and, by extension, MBF Leasing).
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 750 public complaints.
- BBB Rating: MBF Leasing has an “F” rating with the Better Business Bureau and has received 224 complaints and 54 reviews in the last 3 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
We cancelled over 9 years ago, and just found out they’ve been taking $91.54 since cancelled, somehow this was missed by the accountant, as when she started, was unaware it had been cancelled. So approximately this company has illegally stolen almost $12,000.00 And due to Covid-19, James at answering service states company probably not going to open anytime soon to call us back. Crooks!!!
My involvement with MBF Leasing began on 12-20-2007. They were hounding me for unearned monies for years until I hired an attorney firm Chittur Associates from NY in the amount of $5000 to represent me. MBF went away until earlier today (12-16-19). There is now a judgment against me in NY. This is now going on 13 years. Anyone out there that has a solution to make this go away, I would be greatly appreciative.
Dennis,
This article should help: How to Cancel a Merchant Account Without Paying a Fee.
-Phillip
I got the same thing there a piece of c*** they like an they are trying to sue me but let them I’m on disability now an can’t work so let them spend all that money for nothing lmao
this company is not good for your bottom line – stay away from them
I could not cancel during my lease (without an outrageous cancellation fee), had to wait until my contract (which auto renews) was over. Extra fees (Read every little fine print), canceled when my lease was over, still had a $150.00 restock fee for return of equipment, & a $200 something fee to cancel even though my contract with them at that time was month to month. Ripping off their customers. If I ever switch credit card processing companies again, if they use MBF equipment I will NOT use that company! This is after I paid them every month for YEARS!
This post will help: Cancelling a Merchant Account Without Paying a Fee
-Phillip
If i could get a -0 star i would. I cancelled this terminal months ago. I am not under contract. I keep getting charges $26.73 for something i have not used. I actually have cancelled. This is a perfect example ..The right hand is not talking to the left hand
This post will help: Cancelling a Merchant Account Without Paying a Fee
-Phillip
We were approached by a Nicole Dickinson, Sales Agent, for Transmerit Merchant services. We agreed to go with them for our credit card services. She told us we had to use MBF Leasing LLC for our equipment. I signed the agreement before seeing that the monthly charge was $189.00. (They withdraw $209.00) I immediately called her, within the next hour that she had left and she never returned my call. We had serious doubts about the move and tried to get out of it immediately. (The very next day) That was 3 years ago. We are now in the process of closing and was told we still had 2 more years of monthly payments. All I keep hearing is that they have a signed agreement and we must adhere to it or else. Help!!!
This post will help: Cancelling a Merchant Account Without Paying a Fee
-Phillip
Lowlife company. I signed an ironclad 5 year contract with them. Even if I died, my heirs would be responsible for the remainder of contract.
I bit the bullet and leased their junk equipment that I didn’t need for 5 years , then they still wouldn’t let me stop business with them.
They had all kinds of “rules” that made it impossible to get rid of them.
Their equipment was obsolete after 6 months and didn’t even work anymore after 18 months.
Then my office manager finally dug up an address for them and sent them a letter stating we had been off that ridiculous contract for 2 years and she sent the equipment back to them.
I had to close that business account and open another to keep them from stealing more money from me.
After 6 years they are still harassing me and calling me threatening legal action if I don’t pay them for what I do not even know.
Just got a computer generated call yesterday threatening legal action.
Is this company run by the effing mafia? WTF!?
This post will help: Cancelling a Merchant Account Without Paying a Fee
-Phillip
Absolutely the worst company. Complete rip-off. The only way they can still be in business is for scamming many small businesses. It’s so sad that people would actually have the guts to do something like this.
This post will help: How to Report a Bad Credit Card Processor
-Phillip
Hello, I got a call from a New York number yesterday. Saying that if I dont pay $2000+
They will take me to court. This is for a terminal I stopped using in 2011 because of the bad service .
Can any one help plz.
This post will help: Legal Advice for Lease Finance Group Victims
-Phillip
So…
I get a ding on my credit report from a MDF Leasing. A inquiry. I don’t know who they are or why they are on my report. I’m thinking my identity has been stolen because they are using an address I haven’t lived at for 13 years.
So
I call today ….they tell me “Oh….you had our equipment in 2009 when you had your business”
I stopped her right there.
Told her….”I haven’t lived in that address since 2006 and haven’t had that business since 2006″
Its 2019….who do you think I am. BooBoo the Fool?!
Then she said “Well, I’m going to send to our legal department”
I told her “please do it”
They done messed with the wrong one now.
I’m getting ready to have my lawyer drag them from here to infinity.
They trying to put some damn equipment on my report and I never had they equipment!
Its on now.
This post will help: Cancelling a Merchant Account Without Paying a Fee
-Phillip