In 2021, the Truck Leasing Task Force was created in response to a Congressional mandate to combat these agreements, which frequently exploit drivers and compound industry turnover woes.

In these arrangements, a motor carrier retains ownership of the truck and leases it to a driver, often from the same carrier. Despite promises of autonomy and eventual ownership, success stories are uncommon. Instead, numerous reports detail drivers ending up owing money to the carrier at the conclusion of pay periods.

“While the purported goal of these agreements is for the driver to own the truck and become a full-fledged owner-operator at the end of the lease, the agreements rarely work out that way,” OOIDA wrote. “In the end, drivers are paid pennies on the dollar with little chance of owning the truck and zero independence. This system pushes individuals who desire a career in trucking out of the industry and further contributes to driver churn.”

OOIDA has offered several recommendations to address the issue:

• All leasing agreements should explicitly define exclusivity with the lessor.
• Leasing agreements must feature a transparent financial structure that accurately tracks lease payments’ progress.
• Lease arrangements should incorporate safeguards to prevent individuals from being coerced into signing contracts they do not fully comprehend.
• Federal agencies should establish a centralized office to ensure adherence to leasing regulations and provide oversight of lessors.

Representing small-business truckers, OOIDA highlights that many of its members, along with other drivers, have fallen victim to these predatory practices and wholeheartedly support the efforts of the task force.

“Lease-purchase agreements are nothing more than inequitable financial scams that push individuals who desire a career in trucking out of the industry and further contribute to driver churn,” OOIDA wrote. “We urge the Truck Leasing Task Force to consider the recommendations outlined in these comments as the advisory group continues their deliberations and submits their final report.”

Source: Land Line

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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

The post Have a Story About Predatory Lease-Purchase Agreements? Get Ready to Share It appeared first on Truck Drivers USA.

The Federal Motor Carrier Safety Administration (FMCSA) is undertaking a data collection initiative on behalf of its Truck Leasing Task Force (TLTF) to combat deceptive leasing practices impacting the health and safety of truck drivers. Established as part of a congressional mandate, TLTF is tasked with scrutinizing the terms, conditions, and fairness of truck leasing arrangements between owner-operators and trucking companies.

“Consistent with the above statutory authority, TLTF will also examine financing arrangements among motor carriers, entry-level drivers, driver training providers, and other involved entities, which may result in new drivers entering the trucking workforce encumbered by outsized debt and inequitable terms for repayment and will identify potential illegal practices to law enforcement or regulators, as appropriate,” FMCSA said.

During TLTF’s recent public meeting, they discussed a set of questions aimed at drivers who might have entered into problematic lease contracts or had positive leasing experiences that could provide context on fraudulent or inequitable agreements. The goal is to establish a comprehensive record of data and evidence to better understand these relationships.

“The ultimate goal is to make a series of recommendations for best practices and advice to policymakers on the effects of predatory truck leasing practices on safety, and what can be done about it,” said Steve Viscelli, TLTF member.

Questions directed towards truck drivers/lessees include providing copies of leasing documents and financial product documents associated with their work as a commercial motor vehicle (CMV) lessee. Queries cover aspects such as lease terms, marketing strategies, negotiation possibilities, awareness of financing alternatives, and the impact on finances, employment, health, and safety.

For trucking companies/lessors, questions delve into best practices for ensuring fair leases, specifics on charging drivers and lease-purchase agreement terms, and inquiries about agreements related to emission reduction programs at ports.

Responses to these questions will be shared with the Consumer Financial Protection Bureau, serving as a technical advisor to TLTF. FMCSA stresses the importance of redacting personal information before submitting leasing documents, as the information will be posted on a public docket.

Comments submitted will be shared with TLTF before its next public meeting, scheduled for the Mid-America Trucking Show in Louisville, Kentucky, in March. This initiative reflects a concerted effort to address concerns related to truck leasing and promote fair and transparent practices within the industry.

Source: Freightwaves

The post FMCSA Wants to See Truck Drivers’ Leasing Agreements appeared first on Truck Drivers USA.

The official agenda will be published on the TLTF website a week before the meeting. FMCSA asks those who are interested in attending to register in advance at the TLTF website by Friday, Oct. 13.

In the last meeting, the task force tackled necessary administrative matters and started discussing the topics required by Congress in the 2021 infrastructure legislation that established the task force.

Some key topics to be discussed include:

• Examining how unfair terms and agreements impact vehicle maintenance and whether trucks are kept in good repair under lease/lease-purchase.
• Reviewing agreements available to drayage drivers at ports related to programs aimed at reducing emissions from port operations.
• Assessing the impact on net compensation for operators, including port drayage drivers.
• Investigating if truck-leasing agreements incentivize safe operation and compliance with hours-of-service regulations and safety laws.
• Providing resources to help commercial motor vehicle drivers understand the financial impacts of leasing agreements.
• Evaluating how equitable truck-leasing agreements promote opportunities to start or expand trucking companies, and the history of motor carriers growing from one-truck owner-operator operations.

Source: Overdrive

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