In 2009, we signed a 5-year lease agreement with Alliance Funding Group for a piece of equipment that cost $96,975. The lease interest rate was 15.8%. Mr. Steve Friedrich, the salesman of Alliance Funding, told us very clearly that it was $1 buyout at the end of the lease term. We had paid total $140,918.40 during the 5 years lease term. The lease has been payoff in May, 2014.
To our surprise, Alliance recently sent us a notice of automatic one year lease renewal, saying that we still owe them $38,790. They direct us to read the section 16 of the lease agreement, which reads (with the help of a magnifying glass) “If no default exists or has occurred under this lease, you may, at the end of the original or any renewal term, purchase all of the equipment for its then fair market value, plus any applicable taxes unless a different End of Lease Option is granted to you in a separate addendum.” We now realized we were tricked by Steve Friedrich. 5 years ago he approached us selling this 5-year 15.8% interest rate loudly announced $1 buyback lease. When saw us accepted his proposal, he then have us signed the paper with fine prints which spelt totally different term. We are stunned at this indecent business practice.
We questioned Larry Masani, vice president of Alliance Funding. He responded “Steve was the sales rep and has no say in the residual value of the equipment”. But Steve is employed by Alliance. Wouldn’t Alliance is liable for this bad business practice? After paid $140,918 for equipment which costs only $96,975, Alliance is after us for another $38,790. This is their words to us, “You have 24 hours to reply and pay or face litigation for breach of contract. You will be liable for 12 months renewal payments + FMV purchase amount”. It is a big blow to a small business who is struggling to survive in its competitive industry.
It is clearly a case of scam and extortion. By checking the reviews of Alliance Funding, we found that similar cases have been reported. Here is one of them,
We are determined to resolve it legally. If anyone victimized by Alliance with the similar tactics, please contact us at (((redacted))). We need to be united to stop their unethical practice and remove this bad apple from the leasing industry.
Alliance Funding Group Reviews
In 2009, we signed a 5-year lease agreement with Alliance Funding Group for a piece of equipment that cost $96,975. The lease interest rate was 15.8%. Mr. Steve Friedrich, the salesman of Alliance Funding, told us very clearly that it was $1 buyout at the end of the lease term. We had paid total $140,918.40 during the 5 years lease term. The lease has been payoff in May, 2014.
To our surprise, Alliance recently sent us a notice of automatic one year lease renewal, saying that we still owe them $38,790. They direct us to read the section 16 of the lease agreement, which reads (with the help of a magnifying glass) “If no default exists or has occurred under this lease, you may, at the end of the original or any renewal term, purchase all of the equipment for its then fair market value, plus any applicable taxes unless a different End of Lease Option is granted to you in a separate addendum.” We now realized we were tricked by Steve Friedrich. 5 years ago he approached us selling this 5-year 15.8% interest rate loudly announced $1 buyback lease. When saw us accepted his proposal, he then have us signed the paper with fine prints which spelt totally different term. We are stunned at this indecent business practice.
We questioned Larry Masani, vice president of Alliance Funding. He responded “Steve was the sales rep and has no say in the residual value of the equipment”. But Steve is employed by Alliance. Wouldn’t Alliance is liable for this bad business practice? After paid $140,918 for equipment which costs only $96,975, Alliance is after us for another $38,790. This is their words to us, “You have 24 hours to reply and pay or face litigation for breach of contract. You will be liable for 12 months renewal payments + FMV purchase amount”. It is a big blow to a small business who is struggling to survive in its competitive industry.
It is clearly a case of scam and extortion. By checking the reviews of Alliance Funding, we found that similar cases have been reported. Here is one of them,
nytimes.com/2004/08/12/business/small-business-in-equipment-leasing-deals-let-the-renter-beware.html
We are determined to resolve it legally. If anyone victimized by Alliance with the similar tactics, please contact us at (((redacted))). We need to be united to stop their unethical practice and remove this bad apple from the leasing industry.