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Churches sue over alleged scam

DETROIT, Feb. 1 (UPI) -- Pastors of 24 Michigan churches say they were victims of a scam promising free video terminals that actually cost tens of thousands of dollars.

The churches are among 176 nationwide that allegedly agreed to use educational video terminals from United Leasing of Waukesha, Wis., The Detroit Free Press reported Sunday.

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The ministers said they thought they were signing shipping receipts for receiving the terminals, but actually were signing leasing contracts obligating them to 48 months of payments totaling as much as $40,000.

"This has been devastating," said the Rev. James Whitehead, pastor of Whitehead Memorial Church in Belleville. "Here we are in a recession -- our offerings are down, our heating bills are up -- and you get a bill that you owe $40,000."

Seven of the churches, including churches in Detroit, Flint and Port Huron, are suing United Leasing and two faith-oriented marketing firms in Washington for more than $700,000 in damages, with the rest of the Michigan churches expected to join the suit, the Free Press reported.

Calls to United Leasing and its lawyers were not returned, the newspaper said.

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