Legal information: Trucking law: Truth in Leasing
The US trucking business sector is quite competitive, and a very important aspect of the US economy, involving the movement of goods and services from one state to the other. There are many government regulations aimed at leveling the playing field between the major and minor players. One of the better-known laws governing the US trucking industry is known as “Truth in Leasing”. This law was aimed at establishing standards relating to compensations over leasing of their trucks to other operators within the industry. Often disputes arise between truck owners and lessee over compensation and other issues, and requiring arbitration, or mediations or outright court orders to resolve. Many of the cases relating to “Truth in Leasing” may revolve around issues such as allegations that the defendant motor carriers may have skimmed driver compensation, or may have failed to return escrow funds. Others may involve inability to render an accounting at the termination of leases or questions about imposed undisclosed, undocumented and excessive charge-backs for insurance premiums. Other problems may involve licensing fees, purchases using charge accounts, in some cases, the problems may relate to insurance charges
Truth in Leasing Parts 376.11 and 376.12
The Federal Truth-In-Leasing Law sets broad guidelines governing the adequacy of access by consumers to information that may impact the total cost of a leased vehicle, such information may help consumers to shop around for the best service and cost. The law also mandates certain disclosures relating to lease advertising; an example could be when down payments and amounts are required at lease signing.
Payment Process and other terms
According to the general provision, U.S.C. 14704(a)(1) anyone could bring charges for injunctive relief for violations of sections 14102 and 14103 of the statute’s provisions governing the “Truth in Leasing” This particular section relates to questions of compensation between operators and the leasing individuals or companies. Furthermore, lease advertising must clearly describe the transaction as a lease stipulating total cost of the lease, and schedule of payments and much more.
The Federal “Truth in Leasing” statute also stipulates in section 376.12.that the leasing company must provide the lessee with a written contract which specifically grants the lessee the rights to use the leased equipment, also identifying the equipment to be leased and the time and date when possession of the equipment would take effect, in addition, the leasor must provide a written receipt to those individuals or companies leasing the equipment when the owner retakes possession of the leased equipment upon termination of the lease agreement. The “Truth in Leasing” law also requires copies of freight bill or other forms of freight documentation if and when the leasing agent’s revenue is based on a percentage of the total gross revenues accruing from such lease.
Charge Back Items
When charge backs are involved, the lease contract must clearly describe them indicating in detail, all items that may be paid for in advance, but will be deducted from the leasing agent’s compensation at the end of the leasing period, included in the final statement requires a recitation of how the final figure was derived.
Conclusion
This article examined the federal “Truth in Leasing” statute, and discussed issues and areas of problems between the truck leasing companies and the leasing customers. Most of the conflicts surround the issue of compensations, and the “Truth in leasing” laws have often been relied on when courts and mediation agents try to resolve the arising matters. This article also reviewed Truth in Leasing laws parts 376.11 and 376.12, which are often cited in law courts when these issues are adjudicated upon. Truckers and leasing agents, as well as truck owners and operators have often relied on this statute to protect their interests when conflicts and disagreements occur.