The Feds Just Announced All Lease Purchase Deals Should Be Banned

Discussion in 'Report A BAD Trucking Company Here' started by ClassAOldSchool, Jan 23, 2025.

  1. ClassAOldSchool

    ClassAOldSchool Bobtail Member

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    Credit CDL Life for reporting this..... Here is the info

    A committee assembled by the Federal Motor Carrier Safety Administration (FMCSA) recently submitted a final report suggesting truck lease-purchase programs “cause widespread harm” and should not be permitted.

    The eight-member Truck Leasing Task Force (TLTF) Advisory Board was formed in 2023 under FMCSA oversight. The TLTF was asked to study the impact of common truck leasing arrangements on owner-operators and trucking businesses.

    On January 16, 2025, the TLTF submitted a final report to federal authorities suggesting that lease-purchase programs are harmful to truck drivers and should be banned by Congress.
    Task Force: Lease-Purchase Programs Enrich Carriers At Expense Of Drivers
    The TLTF stated that most truckers sign on to a 3 to 5 year lease agreement, but that “few drivers survive financially until the end of a lease-purchase contract term.” In fact, the TLTF pointed to data suggesting that “less than 1 in 100 drivers who participate in a lease-purchase end up owning the truck.”

    The committee also looked to negative feedback from the trucking community and industry stakeholders, as well as TLTF-reviewed data, which showed that “lease-purchase programs cause widespread harm without offering meaningful scale opportunities for truck and small business ownership.”

    According to the TLTF, lease-purchase programs exploit truck drivers to benefit motor carriers without many options for recourse for the drivers who are financially harmed:
    TLTF’s findings are clear. It formed a consensus to recommend that such arrangements, whereby a motor carrier controls the work, compensation, and debts of the driver, should be prohibited. Lease-purchase programs are regularly established to enrich motor carriers at the expense of drivers. These programs promote a race-to-the-bottom in driver compensation and treatment, pushing qualified drivers out of the profession. Currently there are no effective checks on these programs or remedies for drivers harmed by them.

    TLTF: Congress Should Ban CMV Lease-Purchase Agreements
    The TLTF ultimately called on authorities to act to ban lease-purchase programs in order to protect truckers:

    Congress should ban CMV lease-purchase agreements as irredeemable tools of fraud and driver oppression that threaten a safe national transportation system and diminish the number of truck drivers attracted to and who stay in the trucking industry. Such a prohibition would be the most efficient and effective remedy to stop the damage created by lease-purchase programs.

    What do you think? Do you think a lease purchase is a bad thing? Chime in drivers!
     
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  3. Numb

    Numb Crusty Curmudgeon

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  4. JonJon78

    JonJon78 Road Train Member

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    I hope they ban them for sure!!!
     
  5. Long FLD

    Long FLD Road Train Member

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    But but but how else will people with sub par credit and no money be able to fulfill their dream of being an owner operator?

    It’s not the government’s job to protect people from their own poor financial choices. If people had good financial habits they wouldn’t be in the position of having a lease purchase as their only option.

    While we’re protecting people from themselves let’s go ahead and limit mortgages to a realistic percentage of one’s income, let’s also limit vehicle notes, no more 60-72-84 month terms. If you can’t handle the payment at 48 months max you don’t get the vehicle. Also no more rolling negative equity into a new vehicle note. Heck let’s just do away with credit cards and any other type of financing while we’re at it.

    And even if we did all of that broke people would still find a way to be broke.
     
  6. El Hueso

    El Hueso Light Load Member

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    Debt is what the system runs on. They want everyone to rent their own lives and owe so much money they have to work longer and longer hours for less and less. People basically rent their car, their furniture, their appliances, their phones even. The stuff breaks in two years because it's supposed to and they go sign up for newer stuff and more interest and debt. People carry so much debt it boggles my mind.
     
  7. broke down plumber

    broke down plumber Road Train Member

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    Its like getting a 25k loan at the mob run casino then casino puts in the slick willy dealer that miraculously keeps hitting 21 . You rarely gonna win a hand . The Allmighty protects babys and fools but sometimes , just sometimes the gov't will protect the fool.
     
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  8. El Hueso

    El Hueso Light Load Member

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    The house always wins. ALWAYS. As long as people have their social media and shiny new toys, they can't pay attention to anything more than 5 seconds. They just don't see it. Just keep clicking on stuff to buy it and swiping that card.
     
  9. omaharj

    omaharj Light Load Member

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    Wow.
    The FMCSA has finally looked at company run lease to purchase and concluded they are so fundamentally crooked that they should be outlawed and there are people on here saying let them be.
    Wow.
    IF, and it's a big if, they manage to outlaw fleece purchases. salaries can only go up-up-up. No longer will rates be held down because someone will haul it for a loss. The only way these companies make a profit is by finding someone to haul it for free. The freight HAS TO GET THERE! When no one can make money at 1.80/mile, rates will have to go up. No one is in business other than to make a profit. When no one can be tricked into working for minimum wage, pay will have to go up.
    This can only be a good thing.
    Making it sound un-American to legislate bad actors out of existence is specious at best. It's right up there with "There shouldn't be a clock on a driver's hours per day. If I wanna drive 20 hours straight fueled by coffee and Red Bull, I should be allowed to." The government has a responsibility to look out for its citizens.
     
  10. Long FLD

    Long FLD Road Train Member

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    Where does the handholding stop? A lot of people who realize lease purchase programs aren’t financially viable simply don’t sign up for them. Nobody with the money and credit score to finance a truck on their own signs up for a lease purchase. I find it hard to believe that when someone signs up for a lease purchase that it’s the first poor financial choice someone has made.

    People are allowed to get a mortgage they can’t afford because the banks are counting on getting the house back. People are allowed to roll negative equity into an auto loan and then finance it for an absurd number of months at an absurd interest rate to get the payments low enough that they can drive their “dream car”. People run up credit card debt at 25% interest or more. So where should it stop? It’s not the government’s job to protect people from bad choices.
     
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  11. broke down plumber

    broke down plumber Road Train Member

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    you seem jaded , respectfully.
     
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