Weekly Bulletin Board Complaints --- Week of 12/2/05

These have not been written for several months due to the time needed, plus some have been settled quickly, while others are bogged down. And we have a repeat “guest,” again.

Some are resolved quickly, and others get more complicated.

#1 there are five complaints against a company that has been in the news lately, and since they are not in the stage to name names, readers will have to guess (you are most likely correct.)

Two are from vendors who could not wait any longer, took the applicant to another leasing company, then paid the advance fees themselves. Our process concerns the complaint coming from the applicant, particularly when documents were signed that if the applicant goes elsewhere, they forfeit the deposit. In these two instances, one lessee does not want their name in Leasing News, and the second is angry at the vendor, saying it is his fault and his problem.

The two other's are from brokers who submitted transactions that have not funded. In both cases, they have not be able to obtain a statement from the applicant, whom one is not returning calls, and the other is a referral from a vendor who wants to have nothing to do with the broker, wanting the broker to come up with the advance rental and another source for the lease.

We have a fifth complaint on this company with information to follow. This comes from a broker who found us via Google, and he asked us for advice. We told him to pray, and get the information to us as fast as possible as the entire situation does not look very good.

The total amount is over $300,000, not counting those reported elsewhere.

#2 This complaint concerns an extra 12 months payment at the end of the lease, claimed by an Orange County "broker/lessor." Finally getting all the paperwork and correspondence, it appears the lessee did not want to pay the purchase option, and therefore the lessor started the automatic 12 month payment procedure. In fact, the lessee made two payments, and at the same time, informed the lessor's leasing association board of directors individually, by e-mail, about what he thought of the lessor and what was going on, from his view point. This seems to have settled as the lessee will get credit for the two extra payments, and deducted off the purchase option, which he know has agreed to pay.

#3 This complaint takes over 40 pages of fax from the applicant to document, but basically they signed an agreement, then five days later put a stop payment on it ( which was successful.)

In the meantime, the lessor has filed action in small claims court for the commitment fee. The applicant located out of state was denied a postponement of the small claims court hearing in California. There are several questions about the lease contract itself, made out to an individual, not a company, plus a question of whether the contract is valid or not as no "cash" was received ( a check is a note.) In addition, the contract has a venue of Orange County and therefore the court said the hearing would be held on December 1,2005. The check was for $1,568.74 but the lessor claims $4,668.74: "Defendant entered into a non-cancelable contract for equipment financing. After sending check for commitment fee******* secured an approval per terms of above mentioned contract. Defendant put a stop payment on issued check which is breach of said contract."

#4 This looks like it may be published in the Leasing News Bulletin Board Complaint. The company is no longer licensed in the State of California, a sign of difficulties to follow. They have not returned e-mails or telephone calls:

"My name is *******s, my husband and I own *******Excavating in Iron River, WI. I was given your e-mail by ******** at ****** Leasing, Long Beach, California. I contacted ********* to refinance a payoff to CAT for a piece of equipment. I was looking for a loan to payoff the balloon payment that was due of $30,000. I talked to ***** ****** about financing this for us. The initial conversation was, I need to finance a balloon payoff could he help me with this. He said he had many options and it would not be a problem. He then recon me with 3 options, I took the option for a 4yr payoff at 5%. Then everything started changing.. What caught my attention was a phone call from ****** to verify information. When he told me there would be a FMV buyout at the end I had him explain this to me as this was not what I was expecting. This brought up other questions and the fact that this was not a loan but a lease and it should come out to about 5% when we take all the tax advantages. I told him we are a small company and this would not work for us. At this point he basically said tough luck. I have received a check from them for $860.18 that says if cashed this is full and final. I sent them a total of two checks for $1851.78 and would just like to get our money back.

"Any help you can offer would be greatly appreciated!"