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Have a Story About Predatory Lease-Purchase Agreements? Get Ready to Share It

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Have a Story About Predatory Lease-Purchase Agreements? Get Ready to Share It
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Truck drivers attending the Mid-America Trucking Show in Louisville, Ken., will have the chance to share their experiences with exploitative lease-purchase agreements.

The Federal Motor Carrier Safety Administration (FMCSA) has officially announced that the next meeting of the Truck Leasing Task Force is scheduled for March 21 at the annual truck show. The meeting will occur from 10 a.m. to noon and then 1 to 3 p.m. eastern time.

The Truck Leasing Task Force was established by Congress to put an end to predatory lease-purchase arrangements within the trucking industry. These agreements involve a carrier leasing a truck to a driver while retaining control over the majority of the operation, including the driver’s ability to pay off the loan.

In many cases, truckers entering into these agreements find themselves making substantial payments and maintenance fees without ever gaining ownership of the truck. Some drivers have reported owing money to the motor carrier at the end of a pay period.

Earlier this year, members of the task force raised questions about whether the lease-purchase model should be discontinued.

“I keep on the table, ‘Why we should try to save this model?’ I think it’s an important question for us to analyze,” said Paul Cullen Jr., a task force member and attorney for The Cullen Law Firm. “Why should it be saved? I think we should keep that on the table for our potential recommendation at the end.”

The meeting at MATS will be both in-person and accessible online. Online participants must register by March 14, and the FMCSA will provide the registration link. On-site attendees are not required to register in advance, but those wishing to speak are encouraged to do so.

A public comment period is scheduled from 11 a.m. to noon and 2 to 3 p.m. eastern on March 21.

“A public comment period … will allow drivers and lessees of CMVs to tell their personal experiences with leases and to present any supporting information they would like to share to assist TLTF in making recommendations on such agreements,” FMCSA wrote.

Additionally, the FMCSA has requested truckers to submit lease-purchase documents for review. Details about the requested documents and questions can be found on the FMCSA website. The Owner-Operator Independent Drivers Association supports this effort but has requested an extension to the comment period, which is currently open until March 18.

“We request the public comment period be extended for 30 days in order to provide the Truck Leasing Task Force as much data as possible,” OOIDA wrote. “This will give drivers and other members of the public sufficient time to collect and submit leasing information.”

 

 

Source: Land Line

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