Complaint Review: Leaders Merchant Services LLC - Calabasas California

Leaders Merchant Services is a disreputable "fee-mill" that uses deceptive "bait and switch" sales tactics, classic "run-around" excuses, and a nasty "it's your fault" attitude to continually debit your business checking account for fees you did not authorize or expect.

To illustrate their unsavory tactics, if you tire of the customer service run-around and demand to speak to someone in their executive offices, they'll tell you "they don't know" or that they "don't have that number."  Note that their place of business is not prominently posted anywhere on their web site (as it is on most reputable corporate web sites) and good luck finding the name of a CEO, senior manager, or anyone in charge.

Leaders is a faceless "virtual" company that deliberately erects walls of electronic anonymity to camouflage its unscrupulous business tactics and to avoid responsibility.  In doing so, they've debited my account for more than 3x the expected fees.

Now my story.  

When we originally signed up with Leader's two years ago, we were promised low set-up and monthly fees, although we clearly stated that we would be infrequent and low-volume users.   

But the very first month we were hit with nearly $200 in fees over and above what we were told to expect by their sales agent.  Included were additional set-up fees allegedly charged by the credit-card issuers, opt-out "insurance" fees, and "support" fees for our "free" terminal and "fee" imprinter.  All were of course buried in ambiguous 6pt "fine print."

Worse, the so-called "customer support" agent was rude, condescending, and blamed me for failing to understand "their" terms.  After a bout with the agent and his supervisor, Leaders agreed to refund the additional sign-up fees and to remove us from their opt-out "insurance" program, but they only partially made good on those promises.

Then, months later, we still were being hit with fees that were nearly triple the "low" fees were promised.  Once again, they were unable to explain why they didn't do as promised or it was "our fault."   So after spending hours on the phone, they would again agree to rescind the additional fees for a few months, only to inexplicably raise them again.

About a year ago, when I asked to be released from my contract due to their false representations and poor service, I was told they wouldn't to release me without charging me a $375 termination fee.  So much for fairness and equity. They demand yet another fee for poor service and deceptive business practices.

Similarly, before my contract was due to expire, I notified them of my intention not to renew the contract.  After faxing them the form they requested, I was charged a $99 annual fee.  When I called to inquire, they claimed to have no record of either the termination form or the fee they had levied.  In typical fashion, they demanded that I prove to them a fee was charged.

After again faxing them the termination form, they finally closed my account. But although I was told they'd process the request for a refund of the annual fee (once I proved to them it was levied), today I was told by the same department that they have no such power to do so.  

After explaining that I was already told they would process the refund, only then did they admit that such was already in the record.  Even though they still claim to be "unaware" of the fee, they nonetheless were able to explain to me that it was an annual fee levied by "another" department which they have no control over and don't even speak to!

I was also told today that many of Leader's revised fee practices were enacted due to the deterioration the economy and that they "had a business to run."  Such is typical of Leader's condescending attitude and so much for the fundamental obligation to honor your commitments first!  

Others have complained to Repoffreport.com about Leader's new "security" add-on fee, which is true.  Like the airlines, they're raising fees to bolster their falling revenues.  But unlike the airlines, you can't opt out of Leader's and your only notice of the new fee is another debit from your checking account.

So to recap my personal horror story, it is clear that Leader's in one of those unscrupulous and exploitive companies that lures you in with lots of verbal promises only to nail you with 6pt fine-print clauses and opt-out fees.   They take no responsibility for their actions, blame you for your dissatisfaction, and then erect a kangaroo court to handle your objections.

Based upon their initial promises, Leaders should have only charged us about $400 in fees over the life of the contract (excluding per transaction fees.)  Instead, we were charged well over a $1000 in monthly fees, despite our numerous objections.

Leaders should be avoided by consumers and shunned by all reputable credit-card companies.