NorVergence Customers Unite Against Leasing Companies 

   by Christopher Menkin 

 

“... the sales scheme we were given; they sell systems and services... Now all we need to do is tie them both together in the lease agreement which is what I was told by the salesman. The two payments; one to NorVergence was for the cell phones; and the other to the leasing company which was for the Matrix and the T1 services with data, etc. it may not be what the leasing companies were told; but it surely was what my company was told...

....  I know the numbers are growing here in North Carolina and I do believe this is a nation-wide scandal of which we have never seen. Sure the leasing companies are at a loss also; but so are the small businesses we not only are paying for something that is useless; but all the lost revenue and time for scrambling to get our services back...”

  ( “name with held” )

...  I am sure there will be some type of settlement; maybe when we find the true value of the equipment; we may have to settle for that as well as the leasing companies; as I feel it will be hard for any court/judge to make a decision on a equipment rental that does not have but 1/4th the value of said equipment; so maybe it will turn out that the companies (us) may have to eat the actual cost of the equipment and the leasing companies eat the rest as they too should have done their homework on the true cost of said equipment???”

 (name with held ) 

“My first payment is due today. No  service, of course. We are Seniors, about to retire :( and want to do the "right" thing, legally and ethically and the thing that will be in our favor when the courts rule against this. If we start the payments, we are in for the full $15,000. They offered a buy out of  $8,440. If we sign those papers, we are locked in for good.”

 ( name with held )

“I was contacted by US Bancorp.  Our outstanding lease payments are $41,000.  Their first offer to me was to settle for $12,000.  I am hoping to do better if I settle.”

  (name with held )

“US Bancorp contacted me today to offer a buyout on our lease agreement.  Our balance of outstanding payments is $67,536.  They offered to settle for $38,000.  I countered with $25,000, and they countered with $30,000.  I told them I would have to discuss with my attorney.  My impression is they will take the $25,000 if I stick with it.

“I think this amount sucks, but I am expecting my attorney to tell me that this is probably the least damage I can expect.  The cost of a lawsuit would easily exceed $25,000 if not the whole $67,000.”

( name with held )

Robert J. Fine

“Why don't you do a little investigative reporting and find out what the leasing companies knew as they partnered with Norvergence in this scam.  Find out about Robert Fine and his role at working both sides.  Certainly he was an insider at Norvergence and knew the magic Matrix had nothing to do with telecommunications.  Certainly, he knew that the leasing companies were paying crazy amounts for equipment worth only a fraction of what they were paying.  Certainly the leasing companies knew that the lessees were paying for service, and not some piece of worthless equipment.  Why don't you do your job and find out exactly why the leasing companies performed no due diligence on the equipment they bought.

 

“We all know about how powerful the leasing companies can be.  But the  contracts were all based on fraud and deception and I certainly hope that will mean something to the courts.  I suspect the leasing companies, in spite of their legal brass, are sincerely worried.  Why don't you report on that subject????”

The list serves and internet are burning up with emotional feelings about being “robbed.”  They report contacting all the local and state law enforcement offices, their congressmen, as they believe this is “re-election” time and their voice will be heard louder than any other time.

  In the meantime, the Telecom Agents Association has formed a “legal co-op” with over 50 members at this printing, all putting in a minimum of $995 or the sum of their first two lease payments.

This is a one-two-three step operation where they most likely will choose their "battles," such as all the contracts on NorVergence documents that were assigned or sold to leasing companies.

They are considered the most vulnerable.

Then there is the second set, those "sold" by NorVergence salesmen, who may be recognized as independent agents, or maybe not, and their verbal promises, in certain states, may be considered part of the contract, or the reason the contract was signed.

Then contracts where everything was "not" delivered and the contract was not fulfilled. 

The Telecom Agents Association is a bona fide organization and will have much talent in their effort.  They have support from their industry, and former NorVergence customers.

While Leasing News has been writing about NorVergence, so did the Telecom Agent Association, and they had to walk a "legal line,' even though a closed and association format.

There are some other groups trying to start, but the first one, established, organized, and to the benefit of its profession, has undertaken a move that other associations should take: find ways to help their members and their members customers and their industry.