March 10, 2013

NY settles with leasing company in credit dispute

ALBANY, N.Y. (AP) — New York's attorney general says a company that leases credit card processing equipment mostly to small businesses has agreed to settle a lawsuit.

Eric Schneiderman (SHNEYE'-dur-muhn) says Northern Leasing Systems Inc. will refund $3.6 million to customers nationwide for fees taken from their bank accounts in the spring of 2011 even after their leases expired.

The New York City-based company has also agreed to stop trying to collect another $7 million. Schneiderman says customers will get full refunds for their losses.

He says the company and its affiliates will also pay $575,000 to the state.

Schneiderman had accused Northern Leasing of trying to drain more than $10 million from 100,000 former customers.

The company didn't initially respond to requests for comment Thursday.