IFC Credit “Letter to the Editor”...

ELTnews:

(Equipment Leasing Association )

“Last Monday, November 14th, ELT's E-News Daily contained a news item from the Chicago Tribune, "FTC Debt Inquiry Seeks Court Help," which involved IFC Credit Corporation and the NorVergence case. The item was picked up from the news wires and run without knowing that there was a larger story, or that IFC Credit was singled out only because it is headquartered in Chicagoland, making it an item of local interest. ELT regrets any false impression this may have created.”

Matt Philbin, editor

The Letter:

IFC has sent the following letter responding to the article, and addressing its specific content. ELA continues to monitor the situation around the NorVergence case, and has communicated with the FTC to make sure the Commission uses great care in dealing with the basic issue of defining the line between purely consumer-oriented transactions and commercial transactions with small businesses. The association has several initiatives underway to address this issue.

LETTER TO THE EDITOR

The FTC action filed in the United States District Court for the Northern District of Illinois, as reported in the Chicago Tribune on November 11, 2005, relates solely to a Civil Investigative Demand that the FTC sent to IFC, and many other equipment lessors. The Civil Investigative Demand is basically a subpoena request for information about IFC's Norvergence leases.

The FTC's action relates solely to its Civil Investigative Demand for information and any statements therein or in any other source to the effect that IFC has been uncooperative are simply untrue.

Despite statements by the FTC's attorney to the contrary, IFC has been cooperating with FTC in all respects, and provided an initial response to the FTC's request on October 8, 2004 and a supplemental response on January 12, 2005.

Insofar as those responses were sent via Fed Ex overnight delivery, IFC has been able to confirm that both responses were received at the FTC.

IFC's October response was signed for by K. Docher of the FTC, and its January supplemental response was signed for by G. Fondow of the FTC.

IFC's counsel also contacted the FTC's attorney on a number of occasions during this time period concerning IFC's cooperation and responses.

In addition to IFC's two prior responses to requests for production of October, 2004, and January, 2005, (we have written confirmations of delivery), IFC has been cooperating with the FTC on another supplemental request from the FTC for additional information and IFC is in the process of obtaining and assembling such information from third-parties for forwarding to the FTC.

That information and other materials requested by the FTC are expected to be delivered to the FTC very soon which should resolve the requests of the FTC's Civil Investigative Demand.

IFC, along with many other leasing companies have been impacted by the Norvergence bankruptcy. IFC continues to look to the FTC and the courts for fair and impartial treatment in this regard.