The Attorney General of Missouri has dismissed a lawsuit against a New York-based equipment lessor it had accused of defrauding dozens of Missouri small businesses that leased its credit card swiping machines.

Under an Assurance of Voluntary Compliance agreement reached between Northern Leasing Systems and the Missouri Attorney General's office, in exchange for dismissing the suit, the lessor has agreed to pay up to a total of $25,000 to approximately 40 merchants who filed complaints with the Missouri Attorney General, as well as $5,000 to reimburse the Attorney General for its legal fees.

In order to receive an average payment of approximately $600, each merchant will have the option of terminating its lease and returning the equipment to Northern Leasing, together with a general release.

The AVC further stipulates that the terms of the agreement "shall not be considered an admission of a violation for any purpose," and that Northern Leasing firmly contends that it has not violated any laws with respect to any of the matters alleged in the lawsuit.

Missouri Attorney General Jay Nixon filed suit last April in St. Louis City Circuit Court against Northern Leasing Systems, based on allegations that the company altered contracts signed by Missouri businesses in order to obligate them to four-year leases that could not be canceled and to pay as much as $4,000 for a machine worth about $300.

"We are pleased that the issues alleged in the Missouri action have been resolved to everyone's satisfaction," said Jay Cohen, chairman and chief executive officer of Northern Leasing Systems. "Northern Leasing has always prided itself on the fairness of our business practices and the open dialogue we strive to maintain with our customers, financial partners and governmental agencies. Our swift and continued willingness to resolve issues whenever they arise is a strong indication that we take our reputation very seriously."

Cohen noted that, while the company was confident that it had complied with all laws, the cost of further litigation would far outweigh the cost of the settlement. Cohen also pointed out that the small number of complaints referred to in to agreement is not representative of the hundreds of thousands of satisfied Northern Leasing customers throughout the United States.

"The overwhelming majority of our customers in Missouri and elsewhere across the country are extremely satisfied with the value and customer service they receive from our company," said Cohen.

Previously on monitordaily.com:

4/23/2007 - Northern Leasing Responds to Missouri AG Lawsuit

4/16/2007 - Missouri AG Files Fraud Suit Against New York Equipment Lessor