Just a quick update but we put a stop-payment on the scammers and they invoiced us. What I've heard of happening is that unless we close the bank account completely (or change the number, which technically is a closure then reopening under the same name but different number), the scammers will debit the account (since they have the bank info) under a different entity name. With my in-laws out of the country right now, we are trying to figure out how to best deal with the situation. Aside from that, LFG/Northern Leasing Systems is a intricate and vicious credit card lease scam/scheme.
Basically the rundown of how it works is that they either have a 'salesperson' come into the place of business (or call) and convince anyone there to sign a contract which effectively is non-cancelable and attempts to prevent any other sort of recourse. If they don't convince someone to sign, I've heard many instances of forgery being committed. They also somehow end up obtaining bank account information (I'm not clear as to how this is done) and start debiting from your account every month. If you put a stop payment they will bill from another entity name. If you put a hold or close the account, they start sending invoices and eventually collections notices and threatening letters. They may even harass via phone call. Then at some point they supposedly file a lawsuit against you in the NY City Civil Court, banking on the fact that most people either A) aren't aware they are being defrauded and/or B) won't bother traveling to NY to dispute. The hope on the scammers' part is that you don't dispute so they win the lawsuit, then they can put liens against you etc. I've also heard of people getting hard inquiries run against them and having their credit damaged. It's a real nightmare and unbelievable that this is happening cross state and the states and government seem to be paying very little attention to it.
The Attorney General in NY filed a lawsuit against them a few years ago and it's an ongoing matter... however, these crooks continue to file lawsuits against small business owners that they've defrauded, in hopes of continuing to build their house of cards:
https://ag.ny.gov/press-release/ag-schneiderman-sues-northern-leasing-systems-inc-deceptive-business-practices-andhttps://ag.ny.gov/press-release/court-allows-ag-schneidermans-lawsuit-against-northern-leasing-systems-inc-proceedhttps://ag.ny.gov/NLFAQHopefully this ends soon. For business owners, it's nothing short of a nightmare.
