Frequently Asked Questions and How We Can Help
Our lawyers are ready to assist you in many ways. We are often asked these questions, among others:
DO I HAVE THE RIGHT TO OWN THE EQUIPMENT AT THE END OF THE LEASE?
Perhaps. If the equipment has no meaningful residual value at the end of the lease, you may have the right to own the equipment outright without further payment.
WHAT SHOULD I DO IF THE LESSOR PROMISES ME THAT I HAVE THE RIGHT TO PURCHASE THE EQUIPMENT FOR $1 BUT DOESN’T INCLUDE THAT PROMISE IN THE FORM LEASE DOCUMENTS?
As in the case of the first question, you may still have the right to own the equipment.
WHAT SHOULD I DO IF THE LESSOR UNFAIRLY MAKES ME PAY FOR INSURANCE PREMIUMS?
Form leases typically require the lessee to obtain insurance on the leased equipment. Typically, the lessee has the right to purchase this insurance. However, sometimes unscrupulous lessors charge the lessee for additional insurance which the lessor improperly “force places.” You may have the right to sue the lessor for these improper charges.
WHAT SHOULD I DO IF THE LESSOR CHARGES EXCESSIVE INTEREST OR IMPROPER FEES?
Sometimes, unscrupulous lessors market the lease by promising to “meet” bank lending rates. Also, lessors sometimes assess improper charges for advance rent, property taxes or other fees. You may have legal rights, including filing a claim for fraud, if you have been defrauded by such promises.
WHY IS MY LESSOR CONTINUING TO CHARGE RENT AFTER THE LEASE TERM HAS ENDED?
Many leases provide that the term AUTOMATICALLY RENEWS unless you advise the lessor in writing that you are returning the equipment. You may have the right to refuse to make such "renewal" payments. Some lessors include these provisions in leases that are, in fact, loans. This is like requiring you to keep paying on a loan after you have paid it off.
THE LESSOR IS THREATENING TO REPOSSESS MY EQUIPMENT UNLESS I PAY?
You have legal rights that may permit you to fight to keep the equipment. The lessor might even be wrong in saying that you have defaulted, especially if the default is for something other than failure to pay rent.
THE EQUIPMENT NEVER WORKED OR WASN’T WHAT I ORDERED.
Some lenders and lessors pay the vendor (which may be its parent company) as soon as equipment is shipped to you. Despite what is in your contract, you may have important legal rights.
HOW CAN I AVOID THESE AND OTHER PROBLEMS?
Our experienced lawyers can assist you or your lawyers in negotiating the terms of the lease or loan agreement so that the problems are eliminated before they arise.
WHAT WILL THIS COST ME?
THERE IS NO CHARGE FOR AN INITIAL (TELEPHONE) CONSULTATION. After we speak with you, we will let you know if we wish to investigate your potential claim or problem further. If so, we will ask you to send relevant documents including any lease and other communications between you and the lessor. Depending upon the circumstances of the particular case, we may offer to provide representation on the basis of hourly rate fees, a contingency fee or a hybrid reduced hourly rate/contingency fee. Our retainer agreements are always in writing. If we represent you on a contingency basis, you do not owe us any fees or expenses unless we obtain a recovery for you.