The Feds Just Announced All Lease Purchase Deals Should Be Banned

Hose me over on the truck payments all they want. Screw with my trips to Kentucky at their peril!

 

I agree with you, but…. These leases help to keep rates depressed. So I’m ok with them banning them.

 

Get the government the hell out of this industry.

If you want this done, then do not ever cry about ELDs.

The FMCSA has a lot of other things they can do for all of us but the failure of a few hundred people in the industry because from Lease-Purchase programs should be low on their to-do list.

 

that's it man you can't have it both ways having the government help you and not help themselves to do other things that you perceive as bad. the government is notorious for adding regulations and never removing old regulations till everything is good and pointless and beaten down into submission that's why big government is bad.

 

A few hundred ? Come on now, your better then that

 

I never have cried about ELD’s. In fact I’m ok with them and don’t want to go back to paper. Secondly, we need to go back to regulation era policies. You didn’t have this kind predatory leasing then. Third, is twofold. These people are used to offset rates from their mother carrier allowing for that carrier to quote rates that are unsustainable. While doing this, the driver grows further and further in arrears on maintenance. Thus becoming more unsafe. Basically a rolling disaster that harms rates and is a danger to the public.

This happens thousands of times a day all over the country. So before you blast me about stupid ELD talking points maybe you need to step back and look at it from a business owner’s standpoint. They are your competition! Even if not directly, indirectly. They also share the road with you.

 

EXACTLY! People make the choice to do this. Can't stop people from doing stupid.....

 

Some things to consider.
It's not just a few hundred people we are talking about. Just on this sub-forum (bad trucking companies), about half of the over 6000 threads started here are about Fleece Purchase. There are 10's of thousands people being abused by these programs. I worked for a company that has over 650 power units. That company doesn't even have a review on the Trucker's Report. It's barely mentioned. Not a great company. but people rarely bother to write anything here. Things get very underreported. Almost everyone taken in by Fleece Purchase hasn't posted anything anywhere, but we all know what a white Volvo from the Chicago area means. Plenty of people are aware it's no longer just Chicago. This is a national problem.
The government HAS put a cap on credit card interest rates. It's tied to the Fed Prime rate. Ther are many laws about mortgage lending also. The government is constantly playing whack-a-mole with the auto industry as they come up with new tricks. Regulation is everywhere.
The problem with Fleece purchase is when they tie your employment to a company as part of the lease. When the company controls the truck AND you, there is no limit to the abuse. There is no going to the Labor Board, it's a business vs business situation. While many people may legally be right and should be financially compensated, it's almost impossible to collect. Get an attorney, deal with obstructionist tactics, find out after 3 years the company has changed hands. All for maybe $5,000? And you're broke? One in a million, maybe.
I'm NOT talking about a lease where you have a simple contract with a company that supplies the truck. Here are the terms- so much a month, so many months, so many miles. Pay us on this date, we prefer auto deduction. You make your payments and have almost no contact until the lease is over. Maintenance and repairs are on you. This is a legit lease. You are free to sign on as a true O/O. Don't like the way things are going at that company? Switch companies. HUGE difference.

 

Elmer said "While doing this, the driver grows further and further in arrears on maintenance. Thus becoming more unsafe. Basically a rolling disaster that harms rates and is a danger to the public."

It's getting bad. I don't know if the government is the solution, usually their fixes are ten times worse than the original problem. Used to be people in the field were mechanically motivated and cared. You carried a whole slew of tools and some spare parts and knew and cared. The quality of people on the road (and that's all I can call them "on the road") is at an all time low. They have a pulse. And don't get me started on the fudged medical cards. The government "fixed" the issue of dead people driving down the road too, didn't they? It takes everyone to fix this. Big Brother may fix it, but more then likely, they will just use it to grab money and power and make your taxes go higher.