Tony Lux, MBF Leasing, Vericomm, I-Payment, Lied to and conned into signing a lease, with the promise of saving hundreds of dollars only to find out we lost hundreds. Cuba City Wisconsin
We are the victims of a deceptive white collar scam. I have been doing research on it, and have found out that this scam is as old as the hills...but it was new to us and some other businesses in the area. I am trying to find out if this is actually legal and if there is any recourse for us and our fellow businesses.
Tony Lux, Cuba City, WI, an agent for Vericomm, (Valentia, CA) came into our motel and literally made up a bunch of lies in order to get us to sign a lease for a POS terminal (used to swipe credit cards). He said he was representing Visa and that Visa started this company so that we could go direct and cut out the middle man with our processing, thereby saving a lot of money. He promised us a flat discount rate of 1.69% on the credit cards that we took and told us there would be no charge for taking debit cards. He promised us a lot of other stuff. He said that we would have to lease a terminal from his company because the software for the processing was only compatible with their equipment and also our terminal was obsolete. He said that his new terminal was state of the art and could automatically take the new credit cards that are coming out in the near future. He also said that the new POS terminal could automatically distinquish between debit cards and credit cards and therefore we would save a ton of money with that alone. He ran some figures and showed that we would save between $150 and $300 dollars a month with the new discount rates and that would more than pay for the lease and we would still have money left over to put in our pocket. And then after the lease was up, we would have all of the savings.
To make a long story short, we signed the lease and signed up for credit card processing, only to find out that it was all a lie. We are stuck with a lease for a POS terminal that is only worth $259 (and doesn't do what he said) and we are paying over $124 a month for 48 months which will end up costing us over $6000 before all is said and done. The rate of 1.69% is only for qualified credit cards, and the other rates were all higher. Also, there were fees and charges added on that he did not disclose to us when I signed the lease.
We are not alone as he has suckered other small businesses in this area into signing this ripoff lease and he is STILL out there suckering more hard working small business owners.
I understand that Vericomm is a big business, but someone has to stop them from allowing this to happen all over the country to unsuspecting business owners.
Vericomm told me that they are going to fire Tony Lux for the things he said and did, but the Vericomm company themselves are the ones who are using MBF Leasing as one of their leasing agencies. Even though they know how exhorbitant the cost is (equipment with a value of $200 to $300 being leased for $6000...talk about price gouging!) but yet they continue to send their agents out to sell this package (I-Payment Processing and MBF Leasing).
Vericomm also offered to pay for three of the monthly payments to MBF Leasing because they said they were sorry that I got lied to and mislead by Tony Lux. I would love to know what commission, if any, they received from MBF Leasing for our contract. I'm guessing it was a pretty good one if they are offering to give me around $370 back. I really am skeptical as to whether or not he will get fired. I really don't think so as he is making them a lot of money and that is their whole goal... BIG BUCKS!
As for I-Payment, Daniel, an employee of theirs, told me that I could cancel my agreement with them and switch to a different processor because he understood how I felt and he said that he was sorry this happened to us. But he also offered me a better deal on the rates than I had but not even close to the deal that we thought we were getting when Tony told us about it. I did tell Daniel that I really didn't know if I wanted to associate with a company that would associate with Vericomm, who hired Tony and allows their agents to rip off hard working small business owners with overpriced and outrageous lease contracts.
As for MBF Leasing, I called them and asked about the contract and they said it was noncanellable.
I have hired an attorney to look into this whole mess for me. I'm not sure what I can do. I've never had to go through anything so awful in my life. Being scammed, makes a person feel really stupid, and degraded. I can really feel for all the other people who put their testimonies on this website. We are honest,hard-working, kind, generous, trusting people who were caught off guard during a hectic, busy time of year. It was all cold and calculated on Tony's part. Hind sight is 20/20.
I believe there is strength in numbers. I have contacted two Sheriff's departments, the Lodging Associations, two Chambers of Commerce, the Federal Trade Commission (FTC), the attorney generals offices in four states, several newspapers,and individual businesses, etc. I really want to get the word out. I would love to stop Tony in his tracks.
My last words will be to urge anyone who has been the victims of a similar scam to PLEASE, PLEASE, PLEASE,come forward with your story. If not here, at least call or write to the FTC and the attorney general's consumer division. This is very widespread and if we complain enough, maybe we can get some laws in place to keep this from happening in the future. It really is a tragic, all-consuming experience!
Sally
Marquette, Iowa
U.S.A.
7 Updates & Rebuttals
Sally
Marquette,Iowa,
U.S.A.
Class Action Suit Against MBF Leasing Pending
#8Author of original report
Fri, December 01, 2006
I have contacted an attorney in New York who advised me that their is a Class Action Suit pending against MBF Leasing. If you are interested call Attorney Krisnan Chittur at Chittur and Associates at 212/370-0447. They will advise you. I am looking into this more carefully and advise everyone to check it out before you jump in. I have been scammed once and am wary of everyone now. I will be checking with the Hon. Sherry Klein Heitler,NYS Supreme Court - Civil Branch ,60 Centre St. ,New York, NY 10007 ,(646) 386-3291 . Evidently she is the judge who signed the Class Action Suit. GOOD LUCK TO EVERYONE WHO HAS BEEN SCAMMED AS WE HAVE. IT REALLY SUCKS BUT HOPEFULLY IF WE STICK TOGETHER AND SPREAD THE WORD SOME GOOD CAN COME OF IT.
Also, a word of advice to all of you receiving call after call from MBF Leasing: I wrote them a letter...a portion of it is reprinted below... and since I did, they have not called me once.
MBF LEASING
281 West 83rd Street
Burr Ridge, IL 60527
Subject: Lease # ________
To Whom It May Concern:
I am requesting that you STOP calling me at (phone number)or any other number. These calls are harassing to me and my employees at our place of employment and business. If you need to contact me you need to write to me at the above address.
According to the following section of the Fair Debt Collections Practices Act, I should have received a letter from you by now. I have not received anything from you, so I believe you are in violation of this section of the Act also.
Fair Debt Collections Practices Act, ? 809. Validation of debts [15 USC 1692g]
(a) Within five days after the initial communication with a consumer in connection with the collection of any debt, a debt collector shall, unless the following information is contained in the initial communication or the consumer has paid the debt, send the consumer a written notice containing --
(1) the amount of the debt;
(2) the name of the creditor to whom the debt is owed;
(3) a statement that unless the consumer, within thirty days after receipt of the notice, disputes the validity of the debt, or any portion thereof, the debt will be assumed to be valid by the debt collector;
(4) a statement that if the consumer notifies the debt collector in writing within the thirty-day period that the debt, or any portion thereof, is disputed, the debt collector will obtain verification of the debt or a copy of a judgment against the consumer and a copy of such verification or judgment will be mailed to the consumer by the debt collector; and
(5) a statement that, upon the consumer's written request within the thirty-day period, the debt collector will provide the consumer with the name and address of the original creditor, if different from the current creditor.
(b) If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or any copy of
a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector.
(c) The failure of a consumer to dispute the validity of a debt under this section may not be construed by any court as an admission of liability by the consumer.
According to the following section, you are also under violation of the Fair Debt Collections Practices Act, as your employees have constantly barraged my desk clerks with phone calls even after they were told that I was not there and that they would give me the message. These calls were annoying to them to say the least and actually interfered with their job duties as desk clerks who were hired to take reservations by phone and attend to customers and their needs.
Fair Debt Collections Practices Act:
? 806. Harassment or abuse [15 USC 1692d]
(5) Causing a telephone to ring or engaging any person in telephone conversation repeatedly or continuously with intent to annoy, abuse, or harass any person at the called number.
Sincerely,
Mike
Scottsdale,Arizona,
U.S.A.
just keep calling Verricom and let them know that you are contacting Chase corporate about how you were treated! Vericomm would be dead if they lost Chase as the backer
#8Consumer Suggestion
Tue, August 22, 2006
Sally, You need to go to your state attorney generals office and complain. I would think that this company would try to resolve your issue rather than having to answer to them about their business practices.
You also need to know how Vericom makes their money (Not this Tony guy) they make money from all of the credit card transactions that are processed by their customers. These transactions are actually funded by Chase Bank which Verricom is selling for them and is paid a percentage! Start writing letters to Chase corporate telling them that you were ripped off!! Again, I would think that they would want to resolve this rather than having anymore bad press written about them!
When you took delivery of your leased equipment did you verify the lease terms and payments with the leasing company? Did this Tony guy install and train you on it? This is usually a requirement for him to get paid. He made at least $1500.00 on your sale! If you did not verify the lease terms and payments verbally with the leasing company you have a out because someone had to for the billing to start!! These leasing companies record these conversations for this reason and when you tell them that you did not verify the lease they will pull the actual conversation. You can also inform Vericom directly that you never verified the lease and they will make your problem go away because they DO NOT WANT TO LOSE THEIR RELATIONSHIP with the leasing company and it is also pure FRAUD!! If you did verify the lease start calling the leasing company 2-3 times per day! I have known them to take back terminals if they have all original packaging and are in new condition so they can re-sell it.
Sally, just keep calling Verricom and let them know that you are contacting Chase corporate about how you were treated! Vericomm would be dead if they lost Chase as the backer of all of their transactions!
Good Luck!
Sally
Marquette,Iowa,
U.S.A.
Ethical people don't usually work for unethical companies for very long.
#8Author of original report
Tue, July 18, 2006
Thank you Ken, from Asheville. I have talked to one other representative/agent that told me the same thing about a company she worked for that did the same thing. She said she quit after the businesses she signed up were calling her and complaining that they weren't getting any of the savings or service they had been promised and they couldn't get out of their lease.
She also said that she would give Tony the benefit of the doubt.. that maybe it was the company that was telling him what to say and that maybe he really did believe what he was saying was legit. But if Tony has been with them as long as I think he has, I'm sure by now he knows what's going on. I believe that an ethical person would have quit by now...just as Ken did.
Ken, I sure could use your statement in case this thing goes to court. Please contact me. I own a motel in Marquette, Iowa, Contact the McGregor-Marquette Chamber of Commerce.
Thank you, Ripoff Report, for making this site available. The facts I have learned from your contributors has helped me a lot. I no longer feel stupid....just really, really angry and shocked that thousands of small businesses are going through this and there have been no laws put in place yet to prevent it. It really is worse than organized crime.
Where is the media? This thing should be busted wide open and exposed for what it is. I'm trying to do my part but I am very busy with our small family-owned business and can only dedicate so much time. We need a consumer watchdog to take an interest. Is there one out there willing to take this on? Please comment.
As for a rebuttal to Tony's comments... Stay tuned... I will refute EVERYTHING he said, sentence by sentence. I would do it now but I want to make sure that what I say is ok'd with my attorney first. From his comments, though, I can see he is still at it! By the way, what happened with Vericomm's promise to fire him... just as I thought... he will probably not be terminated unless Vericomm has to get rid of him to save their company's so called reputation. Or maybe Tony will quit when he realizes that the company that he loves to work for is using him just like they probably used others such as Ken from Asheville and others.
If there are any other ex-Vericomm employees out there reading this, please come forward. You could be helping a lot of good, honest, hard working people by entering a rebuttal. Maybe Ken knows of someone that would be willing to get involved. Remember... THERE IS STRENGTH IN NUMBERS!!!
Remember to check back to see my rebuttal of Tony's rebuttal.
Sally
Marquette,Iowa,
U.S.A.
Ethical people don't usually work for unethical companies for very long.
#8Author of original report
Tue, July 18, 2006
Thank you Ken, from Asheville. I have talked to one other representative/agent that told me the same thing about a company she worked for that did the same thing. She said she quit after the businesses she signed up were calling her and complaining that they weren't getting any of the savings or service they had been promised and they couldn't get out of their lease.
She also said that she would give Tony the benefit of the doubt.. that maybe it was the company that was telling him what to say and that maybe he really did believe what he was saying was legit. But if Tony has been with them as long as I think he has, I'm sure by now he knows what's going on. I believe that an ethical person would have quit by now...just as Ken did.
Ken, I sure could use your statement in case this thing goes to court. Please contact me. I own a motel in Marquette, Iowa, Contact the McGregor-Marquette Chamber of Commerce.
Thank you, Ripoff Report, for making this site available. The facts I have learned from your contributors has helped me a lot. I no longer feel stupid....just really, really angry and shocked that thousands of small businesses are going through this and there have been no laws put in place yet to prevent it. It really is worse than organized crime.
Where is the media? This thing should be busted wide open and exposed for what it is. I'm trying to do my part but I am very busy with our small family-owned business and can only dedicate so much time. We need a consumer watchdog to take an interest. Is there one out there willing to take this on? Please comment.
As for a rebuttal to Tony's comments... Stay tuned... I will refute EVERYTHING he said, sentence by sentence. I would do it now but I want to make sure that what I say is ok'd with my attorney first. From his comments, though, I can see he is still at it! By the way, what happened with Vericomm's promise to fire him... just as I thought... he will probably not be terminated unless Vericomm has to get rid of him to save their company's so called reputation. Or maybe Tony will quit when he realizes that the company that he loves to work for is using him just like they probably used others such as Ken from Asheville and others.
If there are any other ex-Vericomm employees out there reading this, please come forward. You could be helping a lot of good, honest, hard working people by entering a rebuttal. Maybe Ken knows of someone that would be willing to get involved. Remember... THERE IS STRENGTH IN NUMBERS!!!
Remember to check back to see my rebuttal of Tony's rebuttal.
Sally
Marquette,Iowa,
U.S.A.
Ethical people don't usually work for unethical companies for very long.
#8Author of original report
Tue, July 18, 2006
Thank you Ken, from Asheville. I have talked to one other representative/agent that told me the same thing about a company she worked for that did the same thing. She said she quit after the businesses she signed up were calling her and complaining that they weren't getting any of the savings or service they had been promised and they couldn't get out of their lease.
She also said that she would give Tony the benefit of the doubt.. that maybe it was the company that was telling him what to say and that maybe he really did believe what he was saying was legit. But if Tony has been with them as long as I think he has, I'm sure by now he knows what's going on. I believe that an ethical person would have quit by now...just as Ken did.
Ken, I sure could use your statement in case this thing goes to court. Please contact me. I own a motel in Marquette, Iowa, Contact the McGregor-Marquette Chamber of Commerce.
Thank you, Ripoff Report, for making this site available. The facts I have learned from your contributors has helped me a lot. I no longer feel stupid....just really, really angry and shocked that thousands of small businesses are going through this and there have been no laws put in place yet to prevent it. It really is worse than organized crime.
Where is the media? This thing should be busted wide open and exposed for what it is. I'm trying to do my part but I am very busy with our small family-owned business and can only dedicate so much time. We need a consumer watchdog to take an interest. Is there one out there willing to take this on? Please comment.
As for a rebuttal to Tony's comments... Stay tuned... I will refute EVERYTHING he said, sentence by sentence. I would do it now but I want to make sure that what I say is ok'd with my attorney first. From his comments, though, I can see he is still at it! By the way, what happened with Vericomm's promise to fire him... just as I thought... he will probably not be terminated unless Vericomm has to get rid of him to save their company's so called reputation. Or maybe Tony will quit when he realizes that the company that he loves to work for is using him just like they probably used others such as Ken from Asheville and others.
If there are any other ex-Vericomm employees out there reading this, please come forward. You could be helping a lot of good, honest, hard working people by entering a rebuttal. Maybe Ken knows of someone that would be willing to get involved. Remember... THERE IS STRENGTH IN NUMBERS!!!
Remember to check back to see my rebuttal of Tony's rebuttal.
Ken
Asheville,North Carolina,
U.S.A.
Vericom trains their reps to lie
#8UPDATE EX-employee responds
Tue, July 18, 2006
The problem is not with the salesmen who come to your store it is the company itself. I worked for Vericom 4 years ago and said the same thing your rep said. I didn't know the truth. Once I realized that everything I was quoting as a fact was actually a smoke and mirror pitch I stopped. Vericom hires everyone who answers an ad and gives them a pitch to follow- you show people that they will save money with the rates you quote but it never works out that way. Their is NO software in the terminals, their can use their own terminals if they want but their is no money in it unless they lease you a terminal. We were told we represented Visa but that was a lie. Vericom is actually just a sales office for EVO who is a sales office for Paymentec etc, etc ,etc,
Vericom has their salesmen jumping around like an old Amway operation= None of their reps have been their longer than 6-months, Hire in masses, put them in classes, kick them on their asses. Once the reps sell all their friends and neighbors they quit- then they have to move.
I'm sure Tony has been with Vericom a few months, I hope his kids don't mind moving to a new school.
Tony
Cuba City,Wisconsin,
U.S.A.
Slander is illegal!
#8UPDATE Employee
Mon, July 17, 2006
My name is Tony Lux and Iam responding to Sally's comments about me and the company (Vericomm) that i work for. First of all I have never been run through the mud like this before. I have never had any problems with any of my customers or potential customers, ever! This program that Vericomm offers doesnt allow for anything misleading or any misrepresentation period! ALL paperwork and quoted figures are gone through with the merchant in detail BEFORE the merchant signs any paperwork. There is no conning or lies! This processing and equipment program is currently being used by tens of thousands businesses in the country today. The reason for these comments from Sally is real simple she just does not want to pay for what she bought- period...bottomline! Another company or rep has told her she can get that same equipment for $249.00 this is TRUE! You can buy the equipment for that but you have NO software, NO programming, NO lifetime warranty, No servicing, NO processing- in lamens terms you have nothing but a machine that CANT do anything for you. The other thing is that Sally chose to lease the equipment not buy it outright. Leasing something typically means u have some interest involved in it, this does too. Vericomm seperates the equipment from the processing. What this allows for is the best possible rates on the processing for the merchant. The merchant pays for the equipment and gets the best possible rate on the processing. Sally knew all this before she signed any paperwork, she knew all the charges, she knew what her payments were going to be, she knew all these things! Now when it comes time to pay for it she wants to throw me and my company under the bus and try and get out of it. I love my job with Vericomm and they understand what Sally is trying to do. Its sad that in the country we live in we have people like Sally that will say anything just so she doesnt have to pay for something! Anybody with questions regarding Sally's slanderous comments can email me @ ********************** ((( ROR REDACTED EMAIL FOR SECURITY PURPOSES ))))
Tony
Cuba City, WI
USA