Complaint Review: Citedel Equipment Financing

I sell equipment and many times refer my clients to leasing companies.  I have used leasing companies myself before in expanding my own business and I got ripped off once. 

I am now more aware of scandalous business practices so consider this just a heads up.

My client found Citadel on his own and submitted an application.  He was asked to send a $2500 deposit with his application as a 'good faith' deposit.  When he asked me about it I told him NO, do not send money until you get confirmation of a valid lease approval along with a terms sheet. 

Asking for $2500 on a $15,000 lease makes no sense anyway!  Even if it was a first and last month deposit, that is way too much!

So my client asked for a confirmed letter from the underwriter approving the lease and a terms sheet outlining the payment, the term, and the buyout.  Instead he got a form via email that as much said the lease is not approved and if Citadel approves a lease (any lease) but the client declines, THEY KEEP HIS DEPOSIT! 

Well this is how I got ripped off.  Years ago I did the same thing.  I was quoted one payment on the phone a day or so after completing a telephone application then once the lease was 'approved' the payment was so high it equated to about a 45% finance charge and a 20% buyout and I said NO!.  They tried to keep my $1250 deposit but I raised so much fuss they eventually sent all but $250 back!  I posted the truth about them and promised to take every opportunity to alert the public of the way I got ripped off.

So beware.  You should never send a 'good faith' deposit to a leasing company before they approve the lease and you accept the terms.  NEVER!  If you do, you will be chasing your deposit money for months and years because they are probably just a fast buck scam.  Also check The Ripoff Report as you probably are not the first.  Check with the BBB to see if there are negative comments on file. Check with the state Attorney General to see if they have a case on this company.  Remember, it is your money...protect it!

Another leasing company I use looked into Citadel and could not find any licensing with the State of California and said their office is a low-budget rented space.  Definitely not the building shown on the 'Contact' tab of their website.  Their website looks convincing enough but heck, anyone can put up a site like this in a few days. 

I called them myself a few times to check on the status of this 'lease' as did my client and it takes days upon days to get a reply.  One time I hit all the buttons on their phone log including Operator, Technical Support, Customer Service, and Billing and guess what?  Everybody must have taken lunch at the same time because no one was available...even Adam and I called back several times that day.  It was not a holiday either!  To this date now 7 days later, not one person has returned my call.  Sounds suspicious to me.