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Table of Contents

Lead Story

Financing options proliferate in payments sphere

News

Industry Update

It's a Square world after all

Patent infringement ruling favors card brands

PCI SSC releases encryption update

NY attorney general files suit against POS leasing firm

Trade Association News

Features

Harnessing the power of questions

The art of social media speak

Selling Prepaid

Prepaid in brief

What prepaid can learn from the EPA

Plastic Jungle unlocks new meaning of money

Views

Mobile technology and the acquiring chain

Mustafa Shehabi
PayCube Inc.

Education

Street SmartsSM:
How to avoid that 'What just happened?' moment

Jeff Fortney
Clearent LLC

Experts reveal their social media strategies

Peggy Bekavac Olson
Strategic Marketing

Ace your sales interview

Alan Kleinman
Meritus Payment Solutions

Don't let your processor do this to you

Adam Atlas
Attorney at Law

Are you leaving your mark on merchants?

Steve Norell
US Merchant Services Inc.

New Products

Award-winning network security system

Phoenix PaySecure
Phoenix Managed Networks

Loyalty packs a punch

vPunch Rewards
vPromos Inc.

Inspiration

Go with the tech flow

Departments

10 Years ago in
The Green Sheet

Forum

Resource Guide

Datebook

A Bigger Thing

The Green Sheet Online Edition

May 14, 2012  •  Issue 12:05:01

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NY attorney general files suit against POS leasing firm

New York Attorney General Eric Schneiderman filed suit April 23, 2012, accusing POS leasing firm Northern Leasing Systems Inc. and its affiliates of stealing between $3.6 million and $10 million from former customers. "These companies engaged in a series of deceptions to squeeze unauthorized fees out of their former customers up to a decade after their contracts expired," Schneiderman said. "We will seek both restitution for defrauded customers and substantial penalties from the companies to ensure justice and accountability prevail."

Unexplained debits

Schneiderman alleges Northern Leasing created a shell company, SKS Associates LLC, to make unauthorized debits from more than 100,000 of its former POS leasing customers. The attorney general additionally alleges SKS successfully pulled more than $10 million out of former client bank accounts, keeping at least $3.5 million. Some former customer accounts were debited as much as 11 years after their leases expired.

The attorney general said SKS claims the fees collected were to pay for uncollected property taxes and administrative fees. "The company could not explain why it failed to collect the amounts previously, nor could it show that the alleged amounts were actually owed," the attorney general's office said. "In fact, 77 percent of the amounts SKS sought to collect were not taxes at all but 'administrative fees.'"

Schneiderman believes SKS was formed to "deliberately mislead customers in an attempt to avoid any harm to Northern Leasing's business reputation." As a result, thousands of former Northern Leasing and affiliates' customers were surprised to find their bank accounts debited by a company they had never heard of or done business with.

Multiple allegations

The list of allegations filed against Northern Leasing includes:

Northern Leasing did not respond to phone or email requests for comment.

For additional news stories, please visit www.greensheet.com and click on "Read the Entire Story" in the center column below the latest news story excerpt. This will take you to the full text of that story, followed by all other news stories posted online.

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

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Spotlight Innovators:

North American Bancard | USAePay | Impact Paysystems | Electronic Merchant Systems | Board Studios