Any fincancial / banker/ loan officer types here?

[WolfeMacleod]

I think I'm getting screwed, royally, by someone I'm leasing a machine from and am very nearly done paying for it (to own)

In March 2003, I started renting the machine in order to check it out. In October/November, we started an official lease-to-own for $12,500. 36 months, $418.17 per month, with a 12.5% interest for a total of $15054.12.

Rent already paid was supposed to go toward the final purchase price...

In March, I added another item to it for $495.85. Scheduled payments for that were supposed to be $16.59.

From November to March, my payments were an even $420. Starting in April, my payments were an even $450 every month to pay for the tensioner, except for two months near the beginning where I paid $430 and $435. I kept the money order reciepts for taxes....

Please download these two xls files for details.

file 1
file 2

I am very puzzled by the main "winder" file.
According to my math, the tensioner was paid off in about May 2005 because of the additional payments.
Acording to our math, we should also be very close to being paid off for the winder - within a couple hundred bucks. I show we have paid approximately $15,300, plus or minus $50 or so.
In several months, he claims payments were only made of $418.17. However, I have postal money order reciepts that clearly show $450 payments.

And, if you look at the payment schedule for 8-1-06, it shows there would be a remaiing balance of $539.40.
Yesterday, I sent him $900 (for the June and July payments- supposedly leaving August 8-1-06's remaining balance....) I also sent $900 last month, for last month and the month before (there were some issues concerning who I was supposed to pay - see bottom)
Today, I get this email...
=========
Dear Wolfe,
Please find attached the Excel sheet with the payment history this is the one linked here
With this payment included the current balance is 883.71. That means that ther will be 2 more payments. One for 450.00 and the last for 442,92.
========
How is it that $450 plus $442.92 equal $539!!!!!????

The 12.5% interest rates look funny to me - looks liek I'm being charged a higher rate. The payment schedule does not jive with the payments I have made. The rental payment don't seem to have been deducted from the total cost. ($290 security + $100/mo from March-October '03)
Can anyone decipher this crap? Am I the stupid one that can't do math, or is it him? Is something fishy here, because it sure smells fishy to me.




Let me also say that I know this guy is a crook. He was sued by the manufacturer for $67,000 for non-payment of various machines. When I originally sent him the deposit for the machine, he started to refuse communications and woulnd't ship the machine untill I sicked the FTC, Postal, and local authorities on him all at once....

Help?

[WolfeMacleod]

Originally posted by SoCal911SC


I'd call them on Monday and ask them to explain the discrepancy. Post what they say.

Unfortunately, I've tried. The guy has pretty much gone out of business, moved out of town to avoid the courts, website shut down (which I promptly registered )and now whenever I try to call, there service is not working. Vonage or something.

I know my math is a bit loose on this, I'm not the best at math, but it should be close enough to tell me if he's screwing me or not.

[WolfeMacleod]

Originally posted by SoCal911SC
you're saying he's shut down and disappeared?

More or less. He requested quite awhile ago that I send my payments to a PO Box located in a feed store in Kingman, AZ. Since then, the only time I heard from him is when I sent a registered letter stating the manufacturer had requested that I send the remaining payments to them (which I really wanted to do!)
I have had recent communications with his through email though.

[84porsche]

I work with a great deal of small equipment leasing and the fine print will kill you as no salesman is honorable to admit to some of the fine print on the back of the lease. In some of our leases, escalations, service clauses, insurance programs, filing fees and administrative fees are all tacked on.

If I read correctly, you leased to own the first piece of equipment and in the last year, you added an additional item to the original lease (coterminus) so both leases end at the same time or did you sign a new lease for the 2nd item. Remember, some leases have auto-renewal (1 year) clauses on them which could have been snuck in as well and could explain why you have extra payments being asked of from you. It does sound like you are getting screwed however if its in the fine print, your hands maybe tied and up to the honor of the original salesperson/owner.

Also, what is the buyout figure. Leases usually have several different figures they can offer at the end of term, buyout to keep, buyout to return, upgrade to return, dealer upgrade to keep. These can be thousands of dollars apart depending on service options and termination dates. Best of luck.

[WolfeMacleod]

Originally posted by 84porsche


Also, what is the buyout figure.

Here's a copy of the lease

The buyout amount is $1.
The additional item was just tacked onto the lease, as far as I cuold tell. There never was any sort of other lease aggreeement for it.

Now, it's also interesting to note that according to my research, Rebima LLC does not, and has never existed, in the state of Arizona....nor has any company called "Rebima" anything, nor has the ower ever owned a business in Arizona.

Any Tax auditors here?