Norvergence Bankruptcy - A Huge Scam

New Jersey based Norvergence, Inc has been charged with defrauding consumers after it filed for bankruptcy. Norvergence bankruptcy has left many people with costly bills and these people have lost a lot of their savings.

The company made false claims that its product Matrix would help customers with lower bills and also promised that long distance calls and calls to cellular phones would not be charged per minute. According to the FTC, Matrix was nothing but standard telephone routers and could not do anything to lower bills. The FTC states that Norvergence had no long term contracts with communication providers and hence they could not in any way assure consumers that they could provide discounts as promised.

What Norvergence actually did was to sell the rental contracts for Matrix to finance companies for quick cash. In the initial stages the company was able to provide discounts but in the long run it was unable to and people were left with huge bills and rental contracts. Finance companies started collections and the customers were unable to dispute the monthly fees.

Norvergence created agreements that were difficult for the layman to understand. Consumers were required to pay between $400 and $5700 per month for a 5 year period. Once the consumer signed the agreement, the agreement was sold to a third party finance company for a discount. The consumers were left with huge bills and the finance companies also started hounding them. In the meantime the company filed for bankruptcy. Norvergence bankruptcy had cheated thousands of people of their savings.

The company was promoted by two brothers who had created a start up company earlier that went bankrupt. Norvergence is the second company promoted by the brothers. Unconfirmed sources suggest that the brothers are busy planning a third start up.