NY Attorney General Reaches Settlement With Northern Leasing

New York Attorney General Eric T. Schneiderman said his office has reached a multi-million dollar settlement with a group of New York City-based business equipment leasing companies that schemed to drain nearly $11 million from the bank accounts of small business customers.

As part of the settlement, Northern Leasing and its affiliates — Lease Finance Group, MBF Leasing, Golden Eagle Leasing and Lease Source-LSI — agreed to fully refund the more than $3.6 million they drained from their customers’ accounts in the spring of 2011. They also agreed to refrain from any efforts to collect the remaining approximately $7 million from customers targeted in the scheme — in some cases, up to 11 years after their victims’ equipment leases had expired. The companies are required to make automatic refunds to certain former customers and there will be a claims process for all other customers. Each customer participating in the settlement will receive 100% of the amount debited.

The companies will also pay $575,000 in costs, penalties and fees to the State of New York.

“My office will go after companies who cheat the marketplace and use shell companies to pick the pockets of unsuspecting and hard-working business owners in New York and across the country,” Schneiderman said. “This settlement sends a clear message that deceptive business practices will not be tolerated in New York, and we will take action to help protect consumers and small businesses from fraud.”

To read the Schneiderman’s full press release click here.

Previously on monitordaily NY Attorney General Sues Northern Leasing Systems, April 24, 2012

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