Credit Union bosses hit out a NCS Group for an overpriced lease for phones.

Apr 1 2010 by Sandra Walls, Hamilton Advertiser

MANAGERS of Hamilton’s four credit unions were horrified to learn they were paying almost £20,000 for a phone system that could be purchased for just £200.

The discrepancy came to light after a recent audit by the joint chairman of the Whitehill Hillhouse Earnock and Burnbank (WHEB) Credit Union.

During the audit Ian Burnett realised that by the end of the 74-month lease of a landline phone system from the NCS Group Ltd, they would be paying out a total of £19,946.

That same phone system, Panasonic 308, could be sourced elsewhere for just £200 complete.

WHEB signed the agreement with NCS in February last year with an initial cost of £774 followed by 74 monthly payments of £258.

Mr Burnett decided to query the lease and in February his wife Catherine, office manager of WHEB, sent suppliers NCS and Siemens Financial Services Ltd, who financed the lease, a letter explaining their concerns.

The letter said: “You can appreciate we are a Credit Union and have to look after our clients’ money.”

The letter also stated that a copy of all correspondence was being sent to WHEB’s solicitors.

Business consultant Gillian Henderson, who is helping WHEB sort out the complicated issues and legalities of their leases, said: “The Credit Union have other issues with the way NCS have set up leases for goods they have supplied. However, what has pushed things over the edge is the massive costs totalling £19,946 for the Panasonic phone system.

“The phones have a recommended retail price of £200 from stores and internet suppliers. It is outrageous.”

Ms Henderson added: “We want to assure any WHEB shareholders that at no time have their shares or savings been used in these transactions and individuals’ money is as safe at it has always been.

“The NCS salesman was local to Burnbank and approached WHEB regarding this lease.

“Although the WHEB staff are fully trained in Credit Union systems they were not fully aware of the implications of an exceptionally long-term leasing agreement and are now battling to resolve the matter.”

A spokesmen for Siemens said: “Siemens is unable to comment on individual customer cases, but would like to stress we are working closely with the supplier to resolve the situation to the benefit of the customer whereover possible.”

NCS managing director Tom Nolan said: “The lease WHEB entered into with Siemens also incorporated a redemption sum that they were liable to pay another finance company.

“This redemption figure was significant. “WHEB agreed the Siemens lease should also be used as a vehicle to allow their existing lease to be redeemed and allow them to acquire title to that equipment.

“This payment was specified in the lease calculation and incorporates provision for installation of the equipment and warranty of same. It is therefore inaccurate to suggest the lease entered into with Siemens was solely in respect of the phone system.

“Our dealings with WHEB were conducted with complete transparency at all times.”