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Burbank , California Credit Analyst Funding Manager Contact :Jason Downs: jdowns@capnetusa.com 877.980.0558 EXT. 125 |
www.capnetusa.com Recently named one of the “5 Best Places to Work” in Los Angeles . |
Thursday, November 6, 2008
Congratulations to President-elect Barack Obama
Vice-President-elect Joe Biden
Headlines---
Correction: IFC Credit Press Release
"Settled" not "Dismissed"
by Christopher Menkin, editor/publisher
Classified Ads---Sales---Mark Wiser
Alert-Up Date: Acropolis Ventures
Global Funding Skips Town
Schein Up, Dental Equipment Sales Off
Bank of West Leasing Parent has 56% loss
Parent of LEAF Third quarter
More Marlin News
Classified Ads---Help Wanted
Cartoon—Poker
Classified Ads---Asset Management
The Smart Leasing Professional
Will Flourish in 2009 and Beyond
Sales Make it Happen- by Scott A Wheeler, CLP
FTC Extends Red Flags Compliance
Fernando’s View: Election-Time Special
Advise & Consent, All the President’s Men, the Best Man
Election, Mr. Smith Goes to Washington
Asian Markets Retreat on Recession Fears
Some firms can't use equipment tax break
Kosher Iowa meatpacker seeks BK protection
News Briefs---
You May have Missed---
California Nuts Brief---
"Gimme that Wine"
Today's Top Event in History
This Day in American History
SuDoku
Daily Puzzle
GasBuddy
Weather, USA or specific area
Traffic Live----
######## surrounding the article denotes it is a “press release”
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Correction: IFC Credit Press Release
"Settled" not "Dismissed"
by Christopher Menkin, editor/publisher
It appears the Federal Trade Commission, starting with Leasing News Person of the Year for 2007 FTC Senior Attorney Randy Brook, now retired, who passed the baton to Robert J. Schroeder and staff have brought closure along with the Attorney Generals of the United States to the NorVergence 11,000 leases of over $200 million dollars.
This has taken almost four and one half years. In the meantime, several leasing companies and two banks have gone out of business, plus the leasing industry has lost “hell and high water” contracts, brought more consumer laws and action into the commercial arena, and in the meantime alienated over 11,000 businesses that had signed leasing contracts, not counting the actual cash losses, the collection out of pocket costs or loss of time incurred for lack of due diligence
(and not counting the many that were aware service was buried in the lease contracts and didn’t care.)
The latest is the “settlement” with IFC Credit, Morton Grove, Illinois, where " IFC Credit will forgive approximately 84 percent of the remaining post-July 15 contract balances, as well as 100 percent of late fees incurred by delinquent debtors" under the terms of agreement with the attorney generals with the compliance enforcement settlement with the FTC.
It now is up to the lessees if they want to take this settlement offer or continue their legal remedy. The issue with IFC Credit originally involved over $21 million in lease steam of payments (fair market value purchase option to lessee, $1.00 out to NorVergence, as contracts all came from NorVergence) in which IFC most likely paid $15 to $16 million (hold backs, discounts) for the contracts.
Those that have already settled are not entitled to the new settlement. Counting the New Jersey class action suit that settled for 20%, it is difficult to come up with the number for over 500 leases in question in Illinois and perhaps an equal number in other states that are not settled.
It seems IFC Credit jumped the gun on the settlement announcement sending out a press release late Sunday stating "that the investigations and lawsuits filed by the FTC and various state Attorneys General regarding NorVergence were settled and dismissed." The media, including Leasing News, printed what was sent.
The first fact is the Honorable Jeffrey Cole, United States District Court Northern District of Illinois in Chicago, had not seen the agreement nor signed it. The two parties signed it on October 31 as well as the 18 attorney generals and District of Columbia on the same date.
On Monday and Tuesday, the Federal Trade Commission could make no comment on it as the settlement was not signed to their knowledge. Four attorney general press offices said they were not aware of the agreement. When pressed for a copy, IFC spokesman Mike Beltrano, Jr. emailed Leasing News:
"I checked and we do not have documentation around the reached agreement to provide yet.
"Per our conversation, it will probably be a few weeks until something is available around this for the public. I will keep in touch with you as things develop and become more available.
"I have reattached the press release. Thanks again for the support and I will be in touch."
The press release he sent had also changed. A key line now read:
"were settled and the cases have been resolved." Not "dismissed” as in the first one sent.
The media had already printed the original, and IFC did not send out a correction. This may have happened as Leasing News spoke to the others involved who were not aware of the press release.
It is considered a legal difference between “dismissed” and “settled” or “resolved.” There is a connotation in “dismissed” which is not accurate. The original press release was therefore misleading.
Judge Cole actually signed the basic agreement on November 4th.
What kind of money are we talking about? Counting court cases, legal fees, trials and expense involved, IFC could be out several million dollars here, not counting appears such as the “S.O.S” in Texas regarding the hold-back not disclosed where it was over $100,000* or suits with the attorney general offices or FTC with its expert witnesses and research, depositions, etc. Adding in the $13 million borrowed for NorVergence leases, and other debt, this loss to IFC could be well over $21 million.
IFC Credit spokesman Mike Beltrano, Jr. told Leasing News the dollar amount was not known.
In the IFC press release it stated: "There was no finding of any fault, wrongdoing or violation of any law by IFC Credit Corporation. The settlement was entered into by IFC solely to avoid the cost, inconvenience and burden of litigation."
The first sentence is true but not accurate, just as "settled" is not "dismissed." A settlement means both parties settle the issue without proving one is guilty or innocent; basically either party does not prevail in their position.
As far as “avoiding cost, inconvenience or burden of litigation, “that road was taken long ago by the great majority of leasing companies who accepted NorVergence lease contracts. This agreement was signed less than a week before the bench trial was to begin, November 10, 2008. The terms of the agreement are quite specific and spell out the process and “checks and balance system. The reporting IFC Credit must provide appears time consuming and costly in itself. (A copy is provided for readers to fully understand the procedures that are imposed in the agreement.)**
“We are extremely pleased to have reached this settlement,” said Rudy Trebels, President and CEO of IFC Credit Corporation in their press release. “We are happy to have this matter behind us and are excited to move forward with our business."
Shame on IFC Credit, Morton Grove, Illinois. Rudy, you let the leasing industry down.
As to what happened to major players such as the Salzano Brothers, they went back into business, one got caught again, his hands slapped, now seemed to have disappeared, and more than likely both are in another business with a front operation, maybe even telecommunication, as they had done prior to NorVergence. Yes, this was their second operation and one brother was president and the other note because he had filed bankruptcy from the first.
The second brother filed bankruptcy from the NorVergence collapse.
By the way, the NorVergence Bankruptcy is almost 4 ½ years old with no assets.
Here is the press release from Texas Attorney General Greg Abbott announcing the agreement:
#### Press Release #######################
ATTORNEY GENERAL ABBOTT FILES SETTLEMENT WITH IFC CREDIT CORP.
Agreement with 18 states, District of Columbia, FTC resolves enforcement action against company
HOUSTON – Today filed an agreement with Illinois-based IFC Credit Corp. that protects small business owners who were deceived in a long-term finance scheme devised by a now-defunct company.
According to the state’s enforcement action, IFC Credit purchased customer accounts from NorVergence Inc., a now-bankrupt company that sold worthless telecommunications services to small businesses. Under today’s agreement, IFC Credit will release Texas small business debtors from most of the financial obligations they incurred after buying NorVergence’s products. In 2007, the Attorney General charged IFC Credit with unlawfully attempting to collect monies from small business owners in several states, asserting that the business owners signed NorVergence service contracts that were deceptive.
Under a 2004 contract, IFC Credit purchased $21 million in uncollected telecommunications business accounts from NorVergence at a steep discount. According to documents filed by the state, IFC Credit should have known that the NorVergence business customers had been deceived into financing worthless telecommunications equipment. The customers subsequently were induced to enter into deceptive “rental agreements,” which placed them into a five-year revolving debt cycle. The rental agreements that were owed by customers ranged from $4,000 to $160,000.
Because these transactions were based on a deliberate scheme to defraud NorVergence customers, the state maintained that IFC Credit was not entitled to collect monies from these customers after July 2004, when NorVergence declared bankruptcy. IFC Credit continues to deny it had any knowledge of NorVergence’s fraudulent activities.
Under today’s settlement, customers are still obligated to satisfy debts incurred before July 15, 2004. IFC Credit will forgive approximately 84 percent of the remaining post-July 15 contract balances, as well as 100 percent of late fees incurred by delinquent debtors .
The Office of the Attorney General joined this settlement with 17 other state attorneys general, the District of Columbia and the Federal Trade Commission.
The state initially filed an enforcement action against NorVergence in November 2004, when it was charged with misleading hundreds of small businesses, promising that its telecommunications services would drastically reduce service costs.
NorVergence falsely marketed its “Matrix” box as a way to fully integrate all telecommunications services, including long distance, DSL and wireless phone service. In fact, the Matrix box was a near worthless piece of equipment that provided little or no benefit to business owners, despite the fees customers were charged for box rentals.
#### Press Release #####################
Copy of the Agreement with Attorney Generals
http://leasingnews.org/PDF/IFC_AOD_2008_10_31.pdf
**Copy of the Agreement with FTC with terms of compliance
http://leasingnews.org/PDF/IFC_Settlement_order.pdf
* “SOS” Case, Texas, Holdback not disclosed:
http://www.leasingnews.org/Conscious-Top%20Stories/Novergence_156.htm
NorVergence Collection of Stories:
http://www.leasingnews.org/Conscious-Top%20Stories/Novergence_main.htm
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Classified Ads---Sales---Mark Wiser
“I am looking for an equipment sales leasing opportunity in the Pittsburgh, Pa. area. I have 10 plus years of successful business to business sale experience mainly in the financial and technology areas along with the ability to interact with prospective customers using a consultative selling approach.
“My past experiences in sales have given me extensive prospecting skills, ability to handle objections and diligent follow-up.
“I have a desire to learn the leasing business and feel I have the qualifications to be successful.””
Mark Wiser
Pittsburgh , PA
Aggressive self starter looking for leasing position w/10 plus yrs sales exp., plus banking experience 814-227-4177
mwiser500@hotmail.com
| Cherry Hill, NJ College grad seeking entry level sales position for equipment leasing and financing in small to mid-size ticket markets. Have 6 months experience in the industry and self-motivated. Contact Matt at 609-280-2178 or email at mkuzan@gmail.com |
| Chicago, IL Sales Executive or Senior Manager, with responsibility for leasing capital equipment in support of transactions based on current market values, market potential and economic trends. tomvolk53@hotmail.com |
Fort Myers, Florida |
Fresno, CA |
| Hillsborough, NJ Sales professional (3 yrs mortgages, 1 year securities) looking to transition my experience/skills into the equipment leasing/financing. Pete Brusyo (908) 625-7232 or peterbrusyo@yahoo.com Resume |
| Montgomery, AL Individual with 10 years advertising sales exp. & 7 years insurance sales exp. Wants independent contractor situation in Alabama. Work with leasing company or broker.334-590-5133 E-mail: billmcneal2003@yahoo.com |
Orange County, CA |
Oklahoma |
| Pittsburgh , PA Aggressive self starter looking for leasing position w/10 plus yrs sales exp., plus banking experience 814-227-4177 mwiser500@hotmail.com |
| Texas/Oklahoma 15 year lease vet looking for plact to take business.great references. all major equipment types. open to compensation. please contact if interested. E-mail: bankingdallas@yahoo.com |
For a full listing of all “job wanted” ads, please go to:
http://www.leasingnews.org/Classified/Jwanted/Jwanted.htm
To place a free “job wanted” Leasing News ad:
http://www.leasingnews.org/Classified/Jwanted/Jwanted-post.htm
ELFA Career Center: Job Seekers (free):
http://careers.elfaonline.org/search.cfm
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Alert-Up Date: Acropolis Ventures
"We caught this vendor on two (2) separate deals. He sells a server for approx 50k with nothing in it. We think it’s either for working capital or he builds some sort of website and consulting fee by leasing a 1k server for 50k."
(Name With Held)
"We have extensive information on these people since 11/02/07. Including in the report are 5 repossessions from $22,232 to $71,607 all with less than 5% of payments made."
Regards,
Bernie Boettigheimer, CLP
President
Lease Police, Inc.
972-361-8111
972-692-8091-fax
214-549-3426-cell
bernieb@leasepolice.com
Original Alert asking for information:
http://www.leasingnews.org/archives/November%202008/11-04-08.htm#alert
 |
(Leasing News provides this ad “gratis” as a means
to help support the growth of Lease Police)
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Global Funding Skips Town
According to Suncoast News, Global Funding LLC, a financial company in Clearwater, Florida, that is the subject of four government investigations, three lawsuits and dozens of complaints, is out of business, according to a public relations firm hired by Global.
Monday, the company's offices at 14450 46th Street N, Suite 104 in Clearwater were completely bare, no one answered the phone, and no forwarding address was left on the door.
The sole indication that Global Funding LLC has filled that space in recent months is a white decal on the door with the company name and corporate logo.
Global employed as many as eight people in recent weeks under the ownership of managing member Jeffrey Maricle, SunCoast News reported, who started the company at another location in 2004 and has moved at least twice since then.
Sun Coast News wrote “Maricle was in the business of arranging leases for long-distance truck drivers and others in need of heavy equipment but had run into a lot of problems with truck drivers who either lied on their credit applications or tried to back out of deals, he said.
“News Channel 8 and tbo.com located at least 20 drivers in 12 states who complained Global took thousands of dollars in lease deposits and advance fees — in one case nearly $21,000 — and refused to return the money when the deals went sour.”
The Florida attorney general is investigating more than 40 complaints against Global. Clearwater police have received seven complaints. And the Pinellas County Department of Justice & Consumer Services has three complaints on file from customers who say Global has refused to refund some or all of their money.
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Schein Up, Dental Equipment Sales Off
Henry Schein, Inc. (NASDAQ: HSIC), one of the largest provider of healthcare products and services to office-based practitioners in the combined North American and European markets reported net sales for the third quarter of 2008 were $1.7 billion, an increase of 9.6% compared with the third quarter of 2007.
"Our worldwide sales growth of almost 10% reflects the benefit of our diversified operations," said Stanley M. Bergman, Chairman and Chief Executive Officer of Henry Schein. "Earnings growth this quarter was highlighted by operating margin expansion in line with our long-term financial objectives."
Dental Group sales of $645 million increased 4.5%.
"As evidenced by our consumable merchandise sales growth this quarter, dentists continue to have busy practices," commented Mr. Bergman. "We do believe, however, that the current economic environment had an impact on our sales of dental equipment."
Medical Group sales of $427 million declined 4.1%.
For the first nine months of 2008, net sales of $4.8 billion represent an increase of 14.7% compared with the first nine months of 2007.
To reduce costs in light of the current economic environment, Henry Schein announced it will be eliminating approximately 300 positions from its operations around the world, or approximately 2.5% of its workforce, and closing several smaller facilities. "The Company expects one-time pretax costs associated with this initiative to be $22 million to $25 million, which we expect to record in the fourth quarter of 2008. Annual pretax cost savings from this initiative are expected to be approximately $24 million to $27 million.
"Given the recent changes in the economic climate, we expect that the markets Henry Schein serves will continue to grow, but at somewhat slower rates during these challenging economic times. While we remain confident in our ability to achieve our financial goals, we are taking these actions in light of our view that sales growth for 2009 may moderate somewhat from what we have experienced over the past several years," commented Mr. Bergman. "This is a difficult decision, but by taking these steps to reduce costs, Henry Schein will remain well positioned to help our customers operate more successful practices and deliver high quality care to patients."
Full Press Release and Financial Information available here:
http://investor.henryschein.com/phoenix.zhtml?c=74322&p=irol-newsArticle&ID=1222156&highlight=
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Bank of West Leasing Parent has 56% loss
BNP Paribas reporting in Paris, France that its net profit sank 56 percent in the third quarter on a 1.1 billion euro ($1.41 billion) loss, primarily due to the world wide financial crisis.
The bank had previously reported profits of $1.l5 compared to 2.03 billion a year in the same quarter.
Pretax earnings at Bancwest, the U.S. consumer-banking unit, fell to 50 million euros from 171 million euros a year earlier. That missed the 128 million-euro estimate of analysts.
In a statement Wednesday, the bank blamed the collapse of U.S. investment bank Lehman Brothers and major Icelandic banks, as well as the impact of rating agencies' downgrade of bond insurers. ions and increase the risk of losses on BNP holdings insured by them.
BNP Paribas have fallen 22 percent this year. BNP Paribas shares closed down 1.5 percent at 57.60 euros ($74.97) in Paris.
Bloomberg reports, "BNP Paribas's shareholders equity rose 9.6 percent since the beginning of the year to 40 billion euros at the end of September, excluding effects from the Fortis acquisition. Capital will be bolstered by selling 2.55 billion euros of subordinated debt to the French government."
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Parent of LEAF Third quarter
Resource Capital announces their third quarter 2008 results with net worth going from $271,606,000 to $ 239,101,000; net income was $88,000 for the three months, according to their consolidated statement of operations. Estimated REIT taxable income, a non-GAAP measure, for the three and nine months ended September 30, 2008 was $9.4 million and $30.9 million compared to $10.9 million for the three and nine months ended September 30, 2007, respectively, decreases of $1.5 million (14%).
“-- RCC's commercial finance subsidiary ended the third quarter with
$106.2 million, at cost, in direct financing leases and notes at a weighted- average rate of 9.30%. RCC's leasing portfolio is fully match-funded through a secured term facility, which had a balance of $99.9 million as of September 30, 2008 and a weighted-average interest rate of 5.06%.”
“Non-performing Loans and leases have gone from $1,267,000 to $18,668,000...” from September, 2007 to 2008.
Real Estate Loan Portfolio:
| “Collateral type | |||
| Multifamily | 32.9% | ||
| Hotel | 26.6% | ||
| Office | 22.0% | ||
| Retail | 13.2% | ||
| Condo | 1.2% | ||
| Flex | 0.8% | ||
| Self-storage | 0.8% | ||
| Other | 2.5% | ||
| ----------- | |||
| Total | 100.0% |
| “Collateral location | |||
| Southern California | 24.2% | ||
| Northern California | 16.6% | ||
| New York | 11.2% | ||
| Arizona | 8.2% | ||
| Texas | 4.9% | ||
| Florida | 4.6% | ||
| Tennessee | 3.9% | ||
| Washington | 3.7% | ||
| Colorado | 3.7% | ||
| Other | 19.0% | ||
| ----------- | |||
| Total | 100.0% | ||
Jonathan Cohen, CEO and President of RCC, commented, "The credit quality of our loan portfolio appears to be generally weathering the storm and we are pleased with its performance. We have increased our general reserves, primarily in our bank loan portfolio and took a specific reserve against one loan in our commercial real estate loan portfolio, which prepaid after the end of the quarter at a modest discount -- we were willing to accept this deal to buy other investments in the future at more substantial discounts. As a result of $44.4 million in commercial real estate prepayments during the quarter, we are able to shift loans from our CRE term facility into our CDO structures, utilizing the favorable liabilities in those structures, and simultaneously improving liquidity and de-levering our balance sheet by paying down the CRE term facility. As these prepayments continue to occur, we intend to reinvest at very attractive spreads, look at opportunities to buy our debt at a significant discount and our stock in the market, and generally increase the liquidity of our Company. We also worked hard to eliminate all but $180,000 of short term recourse liabilities."
Full Press Release:
http://biz.yahoo.com/iw/081105/0449730.html
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More Marlin News
"On November 5, 2008, the Registrant’s wholly-owned subsidiary, Marlin Business Bank, filed an application for membership in the Federal Reserve System, and on the same day the Registrant filed an application with the Federal Reserve to become a bank holding company under the Bank Holding Company Act of 1956, as amended. These filings were done in connection with Marlin Business Bank’s application to convert its charter from an Industrial Bank to a state chartered Commercial Bank filed with the Utah Department of Financial Institutions on October 21, 2008."
http://www.snl.com/Cache/c6933943.htm
From SEC filing on third quarter:
“The Company opened its Utah Industrial Bank, Marlin Business Bank, on March 12, 2008. The Bank has funded $59.3 million of leases and loans through its initial capitalization of $12 million and its issuance of $47.2 million in FDIC insured deposits at an average borrowing rate of 4.15%. Quarterly average deposit outstandings were $43.9 million at a weighted average interest rate of 4.13%”
SEC Filing
http://www.snl.com/Cache/6923946.pdf?O=3&IID=4089372&OSID=9&FID=6923946
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Leasing Industry Help Wanted
|
Burbank , California Credit Analyst Funding Manager Contact :Jason Downs: jdowns@capnetusa.com 877.980.0558 EXT. 125 |
www.capnetusa.com Recently named one of the “5 Best Places to Work” in Los Angeles . |
Please see our Job Wanted section for possible new employees.
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Classified Ads---Asset Management
Asset Management: Atlanta, GA |
Asset Management: Boston, MA Nationwide appraisals, remarketing, audits, inspections and more! Over 15-years industry experience and dedicated to deliver personal, prompt, professional services. Call Chris @ 508-785-1277. Email:chris@dovermanagementgroup.com |
|
Asset Management: Minneapolis, MN |
Asset Management: Monroe, NC Recover a greater return on your investment. We specialize in the woodworking, pallet, sawmill and forestry industries. Carolinamachinerysales.com/ Melinda Meier (704)288-1904 x103 |
| Asset Management: Nationwide BUYER/LENDER BEWARE. Don't sign anything until Collateral Verifications Inc. goes onsite, knocks on the door and gets the facts. http://www.i-collateral.com Email: mark@i-collateral.com |
Asset Management: Orange City, FL |
Asset Management: Oxnard-Hollywood Beach, CA |
All "Outsourcing" Classified ads
(advertisers are both requested and responsible to keep their free ads up to date:
http://www.leasingnews.org/Classified/Outsourcing/Outsourcing.htm
How to Post a free "Outsourcing" classified ad:
http://www.leasingnews.org/Classified/Outsourcing/Outsourcing-post.htm
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Sales Make it Happen --- by Scott A Wheeler, CLP
The Smart Leasing Professional Will Flourish in 2009 and Beyond The leasing industry is certainly not immune to drastic changes or challenges in the broader economic markets. However leasing professionals are best prepared because we thrive on change; we embrace new opportunities and we look toward the future rather than to the past. Leasing professionals will lead a positive economic recovery because of our optimism and flexibility in the financial arena. Which group do you fall within? Is your future based upon? • The economy needs to turn. OR: Is your future based upon? • You exploring new opportunities in the market. I hope my point has been made. Your future depends upon your actions today. Outside forces are important and we must be aware and react appropriately to outside forces. However, our time and efforts need to be focused on our own actions and those initiatives which are forward looking and most productive for our long term profitability and short term survival. Leasing professionals are known for their creativity and perseverance. Now may be the time to reinvent ourselves for the future. Factors are changing quickly. Who would have predicted in July of 2008 that oil prices would drop by more than 50% in less than four months? Are you preparing yourself, your company and your clients for a significant increase in leasing activity in the next three months, or six months, or even twelve months? Many claim that I am too optimistic – but most of those individuals thought that oil would never be below $100.00 per barrel EVER again. When robust leasing activity is reactivated the landscape will be very different - many of your past competitors will be gone, others will be smaller with limited capabilities, many individuals in our industry will be playing catch-up. However, the smart leasing professionals who have worked smart and diligently in the down months (not years) will be in great demand by new lessees, new vendors and new employers. I am not advocating putting your head in the sand and ignoring the broader economic factors. You need to look beyond the evening news and focus upon where you want to position yourself for 2009 and beyond. I am confident the best in our industry will flourish in the future, they will re-shape their skills and products to meet the future needs of lessees and vendors; and will remain strong entrepreneurs providing excellent services to the commercial clients we serve. Your actions today will build brighter leasing tomorrows. I would be delighted to hear your individual perspective. I can be contacted at scott@wheelerbusinessconsulting.com . To find out more about my leasing services visit: www.wheelerbusinessconsulting.com Scott A Wheeler, CLP With over twenty-six years of leasing experience and an Executive Masters in Business Administration, Scott is an accomplished senior leasing executive with leadership qualities in marketing and operations. His extensive experience will benefit organizations looking to reach a higher level of profitability and corporate development. Sales Makes it Happen articles:
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FTC Extends Red Flags Compliance Deadline to May 1, 2009
NVLALifeLine
(National Vehicle Leasing Associate Newsletter)
In an unexpected move, the Federal Trade Commission (FTC) announced that it will delay its planned enforcement deadline of the Red Flags Rules to May 1, 2009. The rule, which was designed to deputize lenders and creditors — including auto dealers — in the federal government's campaign against identity theft, went into effect Jan. 1 of this year. The original compliance deadline was Nov. 1.
The FTC explained the decision in an official Enforcement Policy Statement. "Given the confusion and uncertainty within major industries under the FTC's jurisdiction about the applicability of the rule, and the fact that there is no longer sufficient time for members of those industries to develop their programs and meet the Nov. 1 compliance date, the Commission believes that immediate enforcement of the rule on Nov. 1 would be neither equitable for the covered entities nor beneficial to the public. Delaying Commission enforcement of the rule as to the entities under its jurisdiction by six months ... will allow these entities to take the appropriate care and consideration in developing and implementing their programs. It also will give the Commission time to conduct additional education and outreach regarding the rule."
The delay impacts organizations that fall under the FTC's jurisdiction, such as auto dealers. However, organizations such as banks and financial institutions, which fall under the jurisdiction of other regulatory agencies, will still need to have their Red Flags program in place by Nov. 1.
Despite the delayed compliance deadline, dealers are still expected to have policies in place by Nov. 1 to address the two other rules passed in conjunction with the Red Flags Rules. One of the rules covers notices of address discrepancies when a credit bureau is pulled by a dealer. The other mandates that credit and debit card issuers have policies in place to address a change of address.
"There are two tiers of liability for dealers when it comes to the address discrepancy rule," said Michael Goodman, an attorney with Hudson Cook LLP. "First of all, for all users of consumer report info, your burden kicks in when you get a notice of address discrepancy from a credit bureau. You need to have procedures in place to try and resolve the discrepancy. That means going through the identity info you have for the consumer, going through your own records, or using a third-party source to resolve the discrepancy."
The address discrepancy rule also applies to dealers who provide information back to credit bureaus. "If you're a dealer that furnishes info and you get a notice of address discrepancy and you're able to resolve it and you end up doing business with the customer, then you need to report your verified result to the bureau," said Goodman. "This rule also reaches dealers such as buy-here-pay-here operations because they have a continuing relationship with a customer. So they are likely to furnish information to the credit bureau."
Like the Red Flags Rules, the two obligations and related penalties fall under the Fair Credit Reporting Act, which caries fines of up to $2,500 per violation.
"What I've heard is that people who are subject to the [Red Flags Rules] under the FTC's jurisdiction were basically scrambling leading up to Nov. 1 to get into compliance," said Goodman. "I think it's fair to say there were pretty widespread problems meeting that deadline."
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Fernando’s View: Election-Time Special
Advise & Consent, All the President’s Men, the Best Man
Election, Mr. Smith Goes to Washington
With the presidential election having at long last come to a close, the last thing viewers may want is to see politics when they’re trying to unwind with a movie. Yet here’s a handful of choice DVD releases that prove that ballots and popcorn need not be adversaries.
Advise & Consent (Otto Preminger, 1962): The Austrian director Otto Preminger always displayed a knack for controversial subjects, so it was just a matter of time before he brought his caustic irony to Washington, D.C. The film follows the political machinations taking place as the ailing U.S. President (Franchot Tone) announces his controversial nomination of a forthright “egghead” (Henry Fonda) for the White House, with subplots about a colorful Southern senator (Charles Laughton) and a troubled young politician (Don Murray). With a welcome lack of idealization, Preminger provides an astute reminder that the denizens of Capitol Hill are, above all, human beings.
All the President’s Men (Alan J. Pakula, 1976): Made when the Watergate scandal was still fresh in the minds of audiences, Alan J. Pakula’s dramatization of the crusading reporters who exposed Nixon’s dealings is still a knockout piece of cinematic journalism. Following a break-in at the Watergate Hotel, young Washington reporters Carl Bernstein (Dustin Hoffman) and Bob Woodward (Robert Redford) begin an investigation that reveals a world of deception and conspiracy under the White House’s placid surface. The process of sniffing out information and illuminating the truth is so vividly rendered that it’s no wonder the film is a favorite with professional journalists. Others will simply enjoy the compact, expressive storytelling and the cast’s superb performances.
The Best Man (Franklin J. Schaffner, 1964): An acerbic and insightful look at the political clash at a crucial time in American history, this fast-moving account of the race between two frontrunner Presidential candidates hoping to be selected at a convention is also a terrific sample of Gore Vidal’s biting brand of satire. The two opponents are the Secretary of State (Henry Fonda) and an ambitious senator (Cliff Robertson), each doing his best to snuff the other’s chances for a nomination. Director Franklin J. Schaffner (a couple of years before “Planet of the Apes”) keeps things moving at an engaging clip, and Lee Tracy is outstanding as the piquant “hick” President.
Election (Alexander Payne, 1999): Reese Witherspoon was never better than in Alexander Payne’s dark-humored tale of high-school politics. As Tracy Flick, the senior coed running on an all-out mission to get herself elected to student council, she’s a wondrous mix of fearsome perkiness and ruthless ambition, stepping on all those in her way to success. Sensing a threat to the school’s “democratic process” in this pint-sized bulldozer, her teacher (Matthew Broderick, also excellent) tries to set up a second candidate in a dim-witted jock (Chris Klein), leading to a barrage of wacky and often alarming high-school nightmares. Payne would receive bigger acclaim for “About Schmidt” and “Sideways,” but those never equaled this film’s bracing venom.
Mr. Smith Goes to Washington (Frank Capra, 1939): Many critics nowadays dismiss Frank Capra (“It’s a Wonderful Life”) as a creator of corny fantasies, but the truth is that his pictures are much tougher and darker than their comfy reputation would suggest. Capra’s account of idealistic Jefferson Smith (beautifully played by James Stewart) and his fall from innocence when he comes to Washington not only shows how vulnerable the political system is to human venality, it also anticipates the government scandals of many years to come. With an extraordinary cast that includes Jean Arthur, Claude Rains and Thomas Mitchell, it’s a political film in the greatest sense—aware of injustice yet optimistic about humanity’s potential for change.
[headlines]
### Press Release ###########################
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News Briefs----
Asian Markets Retreat on Recession Fears
http://www.nytimes.com/2008/11/07/business/07markets.html?_r=1&ref=business&oref=slogin
Some firms can't use equipment tax break
http://www.post-gazette.com/pg/08310/925280-28.stm?cmpid=business.xml
Kosher Iowa meatpacker seeks bankruptcy protection
http://www.businessweek.com/ap/financialnews/D948SNTG0.htm
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You May have Missed---
NY: 15 Percent NYC Income Tax Hike On Way?
http://wcbstv.com/local/michael.bloomberg.income.2.856839.html
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(This ad is a “trade” for the writing of this column. Opinions
contained in the column are those of Mr. Terry Winders, CLP)
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California Nuts Briefs---
Vote for bigger hen cages for could cause big changes
http://www.usatoday.com/money/industries/food/2008-11-05-farm-animals-humane_N.htm
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“Gimme that Wine”
Chateau Montelena Announces Termination of Sale Agreement With Reybier Investments
http://biz.yahoo.com/prnews/081105/aqw034.html?.v=75
Taking Champagne Back to Its Roots
http://www.nytimes.com/2008/11/05/dining/05pour.html?ref=dining
Record month for wine exports for New Zealand Wine
http://www.stuff.co.nz/4751183a13.html
Wines Shipped in Lighter Bottles
http://www.environmentalleader.com/2008/11/04/wines-shipped-in-lighter-bottles/
New Koch lawsuit to go ahead
http://www.decanter.com/news/271423.html
Wine Prices by vintage
http://www.winezap.com
http://www.wine-searcher.com/
US/International Wine Events
http://www.localwineevents.com/
Winery Atlas
http://www.carterhouse.com/atlas
Leasing News Wine & Spirits Page
http://two.leasingnews.org/Recommendations/wnensprts.htm
The London International Vintners Exchange (Liv-ex) is an electronic exchange for fine wine.
http://www.liv-ex.com/
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Today's Top Event in History
1860 - Former Illinois congressman Abraham Lincoln defeated three other candidates for the United States presidency, a Republican victory over the divided Democrats. Hannibal Hamlin was elected vice president. The electoral vote was Lincoln, 180: John C. Breckinridge, southern Democrat,72: John Bell, Constitutional Union candidate, 39: Stephen A. Douglas, Democrat, 12. The popular vote was Lincoln 1,866,252: Douglas 1,375,157: Breckinridge, 848,781: Bell, 589,581.
[headlines]
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This Day in American History
1796-The first presidential election in which more than one candidate declared for the presidency, in which John Adams received 71 electoral votes and was elected president, and Thomas Jefferson received 68 electoral votes and was elected vice-president. In the elections of 1789 and 1793, George Washington was the only avowed presidential candidate. |
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SuDoku
The object is to insert the numbers in the boxes to satisfy only one condition: each row, column and 3x3 box must contain the digits 1 through 9 exactly once. What could be simpler?
http://leasingnews.org/Soduku/soduko-main.htm
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Daily Puzzle
How to play:
http://www.setgame.com/set/puzzle_frame.htm
Refresh for current date:
http://www.setgame.com/set/puzzle_frame.htm
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