Beware of Predatory Leasing Contracts and Shady Dealers

There are a lot of predatory "leasing" agencies popping up daily promising to finance you when no one can. I can promise you the contracts are written to benefit the Leasing company only and to defraud you specifically. The company's representatives are encouraged to lie to you, assuring you they will work with you if a situation arrises, but you must read the contract! In the end, the contract is what will stand up in court.

One company in particular, Financing WWEL and LRM Leasing of Pompano Beach, FL requires drivers to travel to Florida at the driver's expense and when you arrive they want you to sign a contract the same day in order to do a deal. The contract is predatory, and it states "Lessor does not warrant merchantability or fitness for any particular use of equipment and disclaims any other warranty, express, implied or statutory?". It goes on the say "Lease payments will be due despite dissatisfaction with equipment for any reason".

In the Memorandum of Understanding it requires the driver to sign that he understands that certain violations "will result in losing the leased vehicle and my security deposit. And farther down the page "I understand that breakdowns are not an acceptable excuse for untimely due lease payments".


By signing the document you have essentially waived any right to claim against the leasing company (Financing WWEL/LRM Leasing) for any reason. They make it clear that their role is merely to obtain or provide the vehicle to in whatever condition it is in. It is up to you to have the vehicle inspected and if not satisfactory to you, then you should not take it. By taking it, and in view of the disclaimers and your acceptance of the vehicle you are essentially stuck with it. In the Terms And Conditions (paragraph 2) they make it clear in bold letters, that you take the vehicle of you own free will, and that "If the equipment is not properly installed, does not operate as represented or warranted by the vendor or is unsatisfactory for any reason, Lessee shall make any claim on account thereof solely against the Vendor and shall nevertheless pay Lessor all rent payable under this lease."

This type of transaction should always be reviewed by an Attorney up front.

The Lessor (LRM Leasing of Pompano Beach, FL) has isolated itself from any problem pertaining to the vehicle leaving you to go after the Vendor with regard to any of the problems you experienced or area experiencing. This company requires advance rental payments that they will keep regardless of the time that you have the vehicle in your possession even if its for less than 1 month. "Advance Rentals", and may be applied to the first month and unspecified subsequent months' rental. As stated earlier, by signing this predatory contract you are committed to pay the lease without regard to any other issue. Therefore they can credit that money to unpaid rents, to the extent it covers it, and technically could come after you for the full amount you contracted for even if they repo the vehicle.


This shady company (Financing WWEL/LRM Leasing, Inc.) ran by Cubans and Italians are only looking to fatten their own pockets thus benefitting themselves. They do not offer any late fees and will only give you 5 days before they come and repo the vehicle. They will default you for something as little as not answering their phone call when they call. And guess what, they can let you pay the contract in full and then still take the vehicle deciding not to sale it to you in the end. Places like this are not designed for the driver to win.


Unfortunately, Financing WWEL and LRM Leasing have linked themselves up with a shady dealer, Grand Rapids Truck Center in (GA and MI) that will make a truck look good on the outside with crome and detailing and then erase codes from the ECU using stolen software from various dealers (Volvo, Peterbilt, Freightliner) so that when you test drive it you'll feel that it is mechanically sound. How will you know? When they refuse to let you take it to the dealer (Volvo, Peterbilt, Freightliner) for testing by lying stating that they have their own mechanics and there isn't a dealer near them. So when the truck begins to break and you can no longer pay the high priced rental rates you'll loose your money invested in payments, deposits, and mechanical issues and yes......the truck itself!


To avoid being a victim of these types of scams, make these "finance companies" fax you or email you a lease to review with an attorney before you sign anything and only sign what you've reveiwed thoroughly and only sign what you've read. If you choose to pay your own expenses to visit them, be forewarned, they will try to switch the contract on you so keep a tight eye on the document that you brought in with you. Trust me, you'll be glad you did.

 

Wait, you are saying that if I finance something I bought and not happy with the product THE FINANCE COMPANY SHOULD BE RESPONSIOBLE?!? WTF, I thought that was on me and the company selling the product. Roof on my house leaked, I'm calling the bank on that one.

OK, OK, I am learning a lot here. What I am reading is that I shouldn't check the truck I am buying out and it is the finance company that does this. AND THESE SHADY GUYS BELIEVE THAT THEY SHOULDN'T BE RESPONSIBLE FOR THE CONDITION OF THE TRUCK YOU BUY. Is that clause even legal? I mean, what court in this country would not hold the finance responible for the equipment you buy?

No they didn't? You are saying they expect you to make the payments even when your truck breaks down or you need some extra R&R? Scum.

Now the last one I put on you. EVERYONE knows Cubans and Italians are criminals. As soon as you walked in the door and saw what they are you should have turned around, check your pocket for you wallet and called the INS.

 

Well I sense the sarcasm Big Bad Bill. LOL. But I think what a lot of these leasing companies do is prey on the uneducated. Which honestly probably shouldn't own their own business anyway. It's kind of like the housing market back in 07. They paint such a pretty picture. And someone who is uneducated to the true costs of owning a business are completely fooled. Now as I don't believe it is the finance companies fault per say, but morals and values should come into play at some point. However, it is what it is. Welcome to trucking!!

 

you bought it as is were is. just pay what you agreed and the title will be yours in the end.

 

Agree 100%. Lots of reasons to avoid these fiance companies. But the points listed are laughable.

 

C'mon Bill... everyone knows when a buy-here/pay-here vehicle breaks down, you just walk away and "give it back."

 

I prefer 'walk away and guess where I left it'

 

Sir, I am not sure if you read what I posted, or if you did not comprehend what I wrote, either way you can keep your sarcasm to yourself. This was written to warn drivers (not shady finance owners) to make sure that they read the contracts that they are signing BEFORE THEY SIGN THEM, NOT AFTER. Bottom line, finance companies are preying on the trucking industry because it is one of the last profitable industries left in this country due to the recession that we are in. They are lying to drivers promising to assist them in growing their business and working with them to succeed, however they have no intention of doing either! Many of these companies are scams that are looking to make (or should I say take) a quick buck...they don't care the drivers have families, expenses, nor other responsiblities that may interfere with their ability to pay these financial institutions on time every month.

Right now, people are marching on banks because they put millions of people in predatory loans...but even these banks that we are all upset with would allow a person to be more than 5 DAYS LATE PRIOR TO REPOSSESSING THEIR VEHICLE OR FORECLOSING ON A HOME. So stop and think about it for a minute, if people are threatening to pull all of their money out of a bank who allowed people to get 90-120 days past due and attempted to work with their customers prior to foreclosure/repossession what do you think the end result will be for these "financial companies" who are repossessing trucks/cars when a person is just 1 week late? During the Great Depression, our Government was hurting financially (as it is now) and the result was that any criminal, illegal, or unethical business was "shaken down." Trust me if enough people "blow the whistle" on these unfair business practices it will happen again.

That starts by first LETTING OTHERS KNOW WHAT YOU'VE ENDURED and second by REPORTING YOUR SITUATION TO THE PROPER AUTHORITIES (FEDERAL TRADE COMMISSION) so they can start watching these "special finance" places, and THIRD STOP PATRONIZING THESE CON-MEN.

 

Apparently you did not read your post. You spend most of it talking about terms and conditions of a finance company that any reasonable person would see as being common sense. Guess you have to be on these forums long enough to understand how many people come on hear blaming everyone else for what is their responsibility. Shady finance company or not.

You would be better served in getting the word out in not being disgusted with terms that protect them from people that have no business or trucking sense. From the little you have posted about how they conduct business I would also say stay away. But many of the reasons you find offensive are just plain silly. But unfortunately many in this the trucking industry don't have enough common sense to see that we they buy a truck they are the ones responsible for repairs and making the payment on time. If they can't make the payment for whatever reason then that is on them and not the finance company.

And you are barking up the wrong tree on the whole home loan thing. The data on the number of people that took multiple cash out refi's is staggering. Then they used that money to fund a life style they could not afford to do it all over again. When a loan agent and borrower lie and state false income to show that a person can make a payment on a loan, that is not predatory, that is fraud. And the loan agent and the borrower should be held accountable. But "not my fault, it was the bank three times removed that bought this loan that is at fault." BS.

The borrow signed for a loan with a payment they could not afford. Whatever the justification they had at the time they need to take responsibility for it.

 

People like you are the reason these places exist....you're hard headed and can't take advice for what it is ADVICE. Its unfortunate because I guarantee you, you'll be their next victim. Most victims always say, "I woiuldn't do that," until they do!

For those truckers out there who have been victimized (and yes, you have been victimized, its not your fault) report it ASAP if you haven't already. Don't let jerks like this guy make you feel bad about your situation. Read your contract yes, but also realize what it is you are getting yourself into. 9 times out of 10, it won't end well for you.