Companies who utilize Evergreen Clauses
for Extra Lease Payments
(Copier Leases)
by Christopher Menkin
These companies use language in their purchase options to confuse, perhaps to deceive, with the result an automatic continuation for an additional twelve months of payments. Often they win transactions with lower monthly payments as the lessee is not aware of the practice at the end of the initial term of the lease.
Several have continuation of payments and the requirement of replacing the equipment for a new lease. Leasing News has had complaints involving companies who invoke the twelve months on a $1.00 purchase option, as well as on an Equipment Finance Agreements.
Two of the companies on this list do a lot of copier leasing, where it is reported manufacturers are now getting a piece of auto-renewals and as well as insisting that they be in the lease as a condition of the business. Leasing News has heard from a very reliable source that some copier manufacturers also give dealers 4-5 months’ notice of a discontinued model and agree to sell it to the dealer at 40% of list price, on the condition that the captive finance division not receive the business. Also buried in the contract on one is a one month rental return fee including an inspection fee at the location specified by lessor and at lessee’s return expense (often not the local dealer who supplied the copier). (1)
ACC Capital, Midvale, Utah
Balboa Capital, Irvine, California
IFC Credit, Morton Grove, Illinois
Jules and Associates
LEAF Financial Group, Philadelphia, Pennsylvania
Marlin Business Leasing, Mount Laurel, New Jersey
Marquette Equipment Finance, Midvale, Utah
Mazuma Capital Corporation, Draper, Utah
Onset Financial, South Jordan, Utah
Pacific Western Equipment Finance, Cottonwood Heights, Utah
Republic Bank, Bountiful, Utah
Tetra Financial Group, Salt Lake City, Utah
(Click on name to learn more about the company on this list)
Copier Wars---It's more than the lease payment
by Christopher Menkin
http://leasingnews.org/archive...011/11_23.htm#copier
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