Office of the Attorney General Press Release 

ATM Leasing Companies Agree to Refund Payments to Local Businesses

Contact: Elliot Burg, Assistant Attorney General

September 30, 2003 - Attorney General William Sorrell announced today that eight companies that leased automated teller machines (ATMs) to some 100 small businesses in Vermont have agreed to refund a total of over $700,000 to those businesses, because of deception by an unrelated firm that initially solicited the local businesses to enter into the leases.  

The settlements are contained in Assurances of Discontinuance filed with the Washington Superior Court and signed by the following companies: Advanta Leasing Services of Draper, Utah; Carlton Financial Corporation of Wayzata, Minnesota; CIT Financial USA, Inc., of Livingston, New Jersey (formerly Newcourt Financial USA, Inc.); Information Leasing Corporation of Cincinnati, Ohio; Liberty Leasing Company of West Des Moines, Iowa; Marcap Vendor Finance Corporation of San Diego, California; Patriot Commercial Leasing Company of Pottstown, Pennsylvania; and Preferred Capital, Inc., of Brecksville, Ohio. (No settlement has been reached with a ninth company, Frontier Leasing Corporation of Urbandale, Iowa.) The company that solicited the leases was Philadelphia-based JRA 222, Inc., doing business as Credit Card Center (“CCC”), which is no longer in business.

According to the Assurances of Discontinuance:

CCC “guaranteed” small businesses an amount of income from the onsite operation of the ATMs that would more than offset their lease payments—which payments totaled as much as $18,000 over the five-year lease term. In fact, the “guaranteed” income stopped once CCC experienced financial difficulties, and the local businesses were left having to continue paying off their leases.

CCC claimed it had an “advertisement program” under which outside companies would pay to advertise goods and services via ATM transactions. The program turned out to be non-existent.

All of the leasing companies except Advanta and Liberty failed to provide a three-day right to cancel to the local businesses that leased the ATMs.

Although the leasing companies denied any wrongdoing, under the settlements they will send a letter to all the businesses in Vermont with which they have CCC-solicited leases, offering an unconditional right to have the lease canceled and receive a full refund of all lease payments made (usually about $300 per month), minus some (but not all) of the income received by the local business from ATM transactions. Local businesses will have 30 days from receipt of the letter to send a written request for lease cancellation and refund. They must also make their ATM available to be picked up by the leasing company.

Some refunds may be as high as $18,000 per ATM. The estimated total of offered refunds exceeds $700,000. If a lease is canceled, there will be no further obligation; any negative credit information (in cases where the local business did not make all of its lease payments) will be withdrawn; and any related lawsuits will be dismissed.

The eight leasing companies will also pay a total of $67,000 to the State of Vermont to cover the costs of investigating and settling the matter.

Commenting on the settlement, Attorney General Sorrell commended the eight leasing companies for “stepping up to the plate” and providing an effective remedy for the small businesses that were misled by Credit Card Center. “As between the country store and the large leasing firm,” he said, “the leasing company was in a better position to investigate the activities of Credit Card Center before deciding to enter into the leases.” “These settlements achieve substantial justice for many local businesses in Vermont,” he added.

Vermont businesses that were solicited by Credit Card Center to enter into an ATM lease may call the Attorney General's Consumer Assistance Program for more information, at 1-800-649-2424 (656-3183 in Chittenden County). CAP's address is Morrill Hall, UVM, Burlington, VT 05405.

109 State Street, Montpelier VT 05609-1001
Phone: (802) 828-3171 Fax: (802) 828-5341

  Website consulting provided by The National Association of Attorneys General.