Attorney General's News Release

October 31, 2007

Firm that leases credit card machines to pay $25,000 in restitution, $5,000 to the state in agreement with Nixon

St. Louis, Mo. — A business based in New York City that leased credit card swiping machines to Missouri small businesses will pay $25,000 in restitution and another $5,000 to the state as part of an agreement with Attorney General Jay Nixon. Nixon’s assurance of voluntary compliance with Northern Leasing, filed today in St. Louis City Circuit Court, resolves concerns that Nixon had about the company’s business practices, specifically its leasing of the machines and contracts it entered into with Missouri small businesses.

Nixon filed a lawsuit against the defendant on April 9, 2007, after his office received numerous complaints about Northern Leasing’s practices. The business advertises itself as a leasing company specializing in financing credit card swiping machines and other business equipment.

In his lawsuit, Nixon alleged that sales staff marketing the machines prompted Missouri small businesses into entering into four-year leases to pay for the machines. The Attorney General was concerned that confusion about the terms and lengths of lease contracts were harmful to Missouri small businesses.

In addition to paying $25,000 in consumer restitution as part of the settlement, Northern Leasing is also required to make of payment of $5,000 to the state to reimburse the Attorney General’s Office for fees and costs incurred during the investigation and enforcement of the matter. The settlement also requires the defendant to cancel outstanding leases and collection of debts from some consumers involved in the litigation in exchange for the return of all equipment belonging to Northern Leasing back to the company.

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Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

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