Paul Menzel, CLP : FTC Investigation of NorVergence Funders The coverage of the Federal Trade Commission investigation of NorVergence Funders has been well covered here, with all sides given to the story. Leasing News has posted three editorials, congratulating the parties who settled, calling for others to do the same, and to realize the “politics” of the issue, and as important, how the internet had changed equipment leasing news, plus the legal professional as much information, documents, and research is shared instantly and for free---as Randy Brook, FTC Senior Attorney commented: “I can say I agree with the opinion about the value of the internet to attorneys... speaking up for their behalf, not feeling they are alone, or having to re-invent or discover rulings and facts, ( and ability to pool resources) has certainly changed the playing field.” The only encouraging e-mail about the Leasing News editorial and the FTC investigation has come from Paul Menzel, CLP, Senior Vice-President, Pacific Capital, who has also been very active in several leasing associations, including the Equipment Leasing Association and United Association of Equipment Leasing: “The story about the FTC investigation of deceptive practices in the small ticket leasing segment should be given serious consideration by all in our industry. NorVergence has exposed the leasing industry to more regulatory scrutiny than in the past. ” Although there is plenty of blame to spread around to all parties concerned, not the least of which is the fraudulent but now bankrupt vendor, the Enron motivated demand for transparency in transactions has arrived at our shore. It is imperative that we rise to the challenge and self regulate our practices to meet the highest of ethical standards. “The leasing industry is good for the US economy and has provided a good living for those of us who participate in it. Let's not allow greedy practices by a few ruin it for the vast professional and ethical majority.” Best regards, Paul J. Menzel, CLP Senior Vice President Community Lending Group PACIFIC CAPITAL BANCORP This was received on November 16 th , and Leasing News asked the following leaders of their companies for a comment, a reaction, or view point of Paul Menzel's e-mail to Leasing News: Patrick Byrne, Balboa Capital Perhaps the e-mails are sitting somewhere, but the point is, how many other “leaders” of the equipment leasing industry agree or disagree with Paul Menzel: “It is imperative that we rise to the challenge and self regulate our practices to meet the highest of ethical standards. We hope it does not happen again in the same large magnitude that hit 46 leasing firms and 11,000 lessees. As Paul Menzel, CLP, puts it,”The leasing industry is good for the US economy and has provided a good living for those of us who participate in it. Let's not allow greedy practices by a few ruin it for the vast professional and ethical majority.” The large leasing companies faced it and made a decision: CIT Financial, GE Capital, US Bancorp, Wells Fargo, to name a few. Leasing News would like to hear from its readers on this subject.
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