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Camelot One
Premium,MVM
join:2001-11-21
Sarasota, FL
clubs:
| reply to Donald123
Re: hmm
Yeah, the problem is, Norvergence covered their butts in Florida, at least with the clients I've been working with.
They didn't sign the equipment lease with the customer and then sell it like they did in other states. Here they actually had the customer go and sign a separate lease on the equipment itself, completely independent from their "service" contract. Essentially, they sold the equipment to local banks, who in turn leased it to local companies. Sure, the companies signed these leases with the understanding they would be getting the service end UBER cheap, but there is nothing in the lease contract that says as much, or anything close. They do specify however that the lease is independent of any service agreements.
Since the equipment works with other service providers, the only thing unconscionable about it is the price. But it is perfectly legal to sell a Pinto for $500,000, if you can find a buyer who agrees to pay that much.
I'm afraid the people they screwed will remain screwed, despite the legal efforts to fight it.
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AMD A64 3200+/ MSI K8N Neo/ 2x 512Mb Kingston HyperX PC4000/ WD 74Gb Raptor/ Gainward GF4 4600/Gainward 5200PCI/ Antec 550 True Control/Custom water cooler | |
JPCass
join:2001-01-23
Denver, CO
| said by Camelot One  :
Sure, the companies signed these leases with the understanding they would be getting the service end UBER cheap, but there is nothing in the lease contract that says as much, or anything close.
Does this reveal how the scam was based? That they made a lot of money selling the equipment up front, and then were able to charge very cheap rates for the service end - at least for a while? It sounds to me like people who bought into this, just looked at the cheap per-minute rate or whatever, and forgot to factor into that the exhorbitant leasing cost of the equipment - or the possible problem that a company charging below-market rates might not be able to keep up the cheap rates or even stay in business. Presumably they burned up the money they got selling the equipment - or siphoned off a lot of it - and then ran out of money to keep supporting below-market service rates. Like the Juice scam, it lures people with the promise that some sort of new technology will allow them to get something for less than the going rate. | |
Camelot One
Premium,MVM
join:2001-11-21
Sarasota, FL
clubs:
| Well, I can tell you exactly how this scam was based, at least here.
Norvergence would send in a sales rep, who would look over the customers previous 6 months worth of phone bills. They would then offer them a package of equipment + service that totaled 80% of what they had been paying. The average service rate here was $250 per month, with the difference being the equipment lease. So if a company had been paying $1000 a month for phone service, they were now paying $250 for the service, and $550 per month on the lease. (5 year lease by the way)
This is why no two companies are out the same amount of money, the lease value is variable.
Just the T1 loops run around $450 here, so they were offering the "service" end at a loss. And yes, to me this proves it was an obvious scam right from the start, not a company that went under due to bad management.
What I'd like to know is where all the lease money went. Take the above example.....the client signed a lease with the bank, the bank cut NorVergence a check for $33,000. ($550x60 months) Even deducting funds to cover the remaining T1 loop charge for a few months, someone is sitting on some fat cash.
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AMD A64 3200+/ MSI K8N Neo/ 2x 512Mb Kingston HyperX PC4000/ WD 74Gb Raptor/ Gainward GF4 4600/Gainward 5200PCI/ Antec 550 True Control/Custom water cooler | |
Ricks au
@direcpc.com
| reply to JPCass
We were one of the "scammed" companies. The paperwork we signed was in very small print, the salesperson was instructed to veer our attention elsewhere so we wouldn't read the details. It was very confusing even when you do have time to read it. It was titled "Equipment Rental", not lease, with Norvergence as the Renter. The deal was never described to us as a 2 part service and equipment rental. It was presented in one lump sum. Several months later we received equipment leasing bills. I actually had to call the leasing company to find out what it was for. | |
C B Signs
@aol.com
| reply to JPCass
I have a sign company in Boca Raton, FL. Have you obtained a lawyer on your own or have you gone with a class action? Our leasing company is IFC Credit Corp.(out of Morton Grove, IL) Is this the same lease holder that you have? Being we are in Florida, they are saying it would not be wise to join a class action with a lawyer out of New Jersey. Have you heard anything regarding this? Please let me know how you are handling this mess we have gotten into.
Thanks | |
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