Northern Leasing Systems Overview
A Leasing Company of Many Names
Northern Leasing Systems, Inc., (northernleasing.com) also known as MBF Leasing LLC, provides credit card processing equipment leasing services to merchants and businesses in the United States. Northern Leasing also does business under the names Lease Finance Group LLC, Golden Eagle Leasing LLC and Lease Source-LSI, LLC. Most publicly available complaints about this company mention either Northern Leasing or Lease Finance Group. Launched in 1991, the company primarily leases point-of-sale terminal and other payment devices, enabling customers to accept credit and debit card payments. Northern Leasing is based in New York City, New York, and Jay Cohen is listed as the founder and president of Northern Leasing Systems.
First New York AG Lawsuit
In March 2013, the New York Attorney General reached a multi-million dollar settlement with Northern Leasing and its affiliated companies over a scheme to drain nearly $11 million from the bank accounts of small business owners. The case alleged that Northern Leasing had created a shell company called SKS Associates LLC, through which Northern Leasing misled customers and began withdrawing lease payments from merchants’ bank accounts long after their leases had expired. Although this settlement concludes the Attorney General’s lawsuit and appears to be the end of SKS Associates, Northern Leasing and its related companies are still doing business and have grown into a very large equipment leasing network.
Current 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. It was allowed to proceed in December 2017 and has not yet been resolved. 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.
Northern Leasing Systems Review Table of Contents
- Sales & Marketing: Northern Leasing Systems exclusively uses third-party independent sales agents to market its products and has received a high number of complaints about its sales practices.
- Costs & Contract: Northern Leasing Systems offers a four-year lease contract that cannot be cancelled.
- Complaints & Service: Northern Leasing Systems has received more than 400 public complaints.
- BBB Rating: Northern Leasing Systems has an “F” rating with the Better Business Bureau and has received 445 complaints in the past three years.
- Rates & Fees: How Merchants Got The Best Rates With Northern Leasing Systems