The Lease Settlement Scam

When you replace your leased copier, the chances are there will be an amount owing from the previous lease agreement, it is not unusual for the supplier of the new machine to pay the settlement to the Lease company on your behalf.

Irrespective of what a salesperson may tell you, changing equipment early and refinancing some of the previous lease within your new one is a foolhardy and expensive practice which can lead you into serious financial problems further down the line.

If you entered into the new agreement with the seller on the basis that they would settle the existing lease, it is reasonable for you to expect not to be making anymore payments on the original lease. If you are lucky the supplier will settle your obligation in a timely manner (not all do).

However, if you entered into the agreement with One particular supplier based in Hertfordshire, you may be in for a shock, because clause 4.5 of their agreement reads as follows:

4.5 If the Company has recorded in the particulars of this Document it’s agreement to pay the customer a settlement sum in respect of an existing obligation the Customer may have, the payment shall fall due 12 months after the date of this agreement and the Company’s obligations shall be conditional upon the Customer timeously having met all of its payment obligations to the Company during that period, For the avoidance of any doubt, if the condition is not fulfilled the Company’s obligation to make the settlement payment shall be extinguished   

Translation: Not only will you have to wait 12 months for payment (and make payments due to the Lease Company during that year) but if you are late with any payment demanded by this supplier, you could lose the agreed lease settlement payment altogether.

Is that Fair?

To save yourself being scammed:

Keep in mind this is a very creative and totally unregulated industry, therefor, you must be sure you take time to read and fully understand all the terms of an agreement before you sign it. If you do not have time or the inclination to do so, then send the agreement to us to review before you sign and for a nominal fee, we will tell you any pitfalls it holds.

Unsure about the contract you already have? whoever your supplier is, send a readable copy of the agreement to: review@faircontracts.co.uk we will look at it for free and tell you if it is fair to you.

To see more in the series of unfair agreement terms or for a copy of the ’13 Scurrilous Scams’ visit www.faircontracts.co.uk.