Connecticut $143,000 NorVergence Settlement

As evidence that GE Capital is settling its NorVergence leases around the United States, over $6 million to date, including Georgia, Illinois, Maryland, New Jersey, New York, North Carolina, Pennsylvania, South Dakota, Washington, D.C., you can add Connecticut. This is from the announcement by Illinois Attorney General Lisa Madigan that all the AGs offices are working together on this.

Connecticut Attorney General Richard Blumenthal stated that GE Capital will forgive $143,000 that it claimed was owed by ten Connecticut businesses victimized by a telecommunications scam.

Connecticut AG Richard Blumenthal

NorVergence, Inc., a telecommunications company based in Newark, New Jersey, offered the businesses discounts on telecommunications services through long-term leases on so-called "matrix" boxes. The boxes, however, failed in most cases to deliver the promised discounts, leaving businesses stuck with expensive years-long leases. The announcement was joined by Department of Consumer Protection Commissioner Edwin R. Rodriguez.

"Deceptive sales pitches lured Connecticut businesses into signing long-term agreements that failed to deliver promised discounts," Blumenthal said. "When the service ceased, collection agency hassles started. GE Capital rightly recognized the unfairness of demanding businesses to pay for services promised, but not received. GE's agreement to forgive the vast majority of the money ends a nightmare for businesses that thought they were getting a useful deal, but ended up with a useless debt."

NorVergence claimed that the "matrix" device would enable a small business to reap a 30 percent discount on its telecommunications services, including long distance, DSL, and wireless phone. The total cost the matrix boxes leases ranged from about $12,000 to $175,000.

Connecticut consumers who signed agreements with NorVergence bought by GE Capital or signed NorVergence agreements directly with GE Capital will receive a letter informing them of the settlement. Any businesses with questions should call the Attorney General's Office at (860) 808-5400.