B&G Marketing Settles Case with State

(Pierre) - Attorney General Mark Barnett said today that B&G Marketing, which is operated by Gene Drong and David Drong, both of Ortonville, MN, has settled a lawsuit brought against them by the state. The original complaint, filed last September, alleged that B&G Marketing used deceptive practices to sell credit card processing equipment and failed to provide customers a three-day right to cancel. Many of the customers included businesses located in Northeast South Dakota.

As part of the settlement, Gene and David Drong have agreed to pay civil penalties of $2,400. In addition, they have agreed to:

• Register all business entities in which they have an interest         
• Not insert terms, figures, or other information into contracts outside the presence of the consumer.         
• Not state to consumers that a contract is voidable if it is not, or that consumers can return equipment with no further obligation if this is not true.         
• For two years, file a copy of all contracts with the Division of Consumer Protection.         
• Make all appropriate disclosures and leave a copy of signed documents with the consumer.

Also part of the settlement are Merchant Services Inc. of Plainview, New York and Newcourt Financial Lease Finance Group of Chicago, Illinois. Each lease agreement executed by B&G Marketing was on behalf of the two companies.

Merchant Services & Lease Finance Group have agreed to make restitution of $3,621.80 to eight South Dakota businesses and cancel the contracts in question.