The creation of the Truck Leasing Task Force brought together several experts to address the problem of predatory lease-purchase agreements in the trucking industry. Maybe even more importantly, however, the task force has provided a forum for truck drivers to share their stories.
During the task force’s virtual meeting on Wednesday, Oct. 30, several truck drivers participated in the public comment period.
“I’ve been a victim of a whole lot of this stuff,” said Robert Wilson, an owner-operator. “It was a rush job, and they try to sell you on the idea that you will own the truck in the end. My truck broke down in less than a week, and I was still obligated to pay for the load. I had to pay for a hotel with my own money even though I just got the truck.”
Wilson’s story is not unusual. He is among what the task force “conservatively estimates” to be more than 200,000 truck drivers affected by predatory lease-purchase agreements. In these agreements, a carrier leases a truck to a driver but still largely holds control over the operation, including the driver’s ability to pay off the loan.
It is common for drivers to report owing money to the carrier at the end of a pay period.
Congress established the Truck Leasing Task Force with the goal of ending predatory lease-purchase agreements in the trucking industry.
“I hear horror stories from people all of the time who get caught up in this and lose everything they had,” said Jim Jefferson, a task force member and compliance supervisor for the Owner-Operator Independent Drivers Association.
Wendy Kinkead, a truck driver, applauded the task force for its efforts to protect truckers from predatory lease arrangements and asked for the creation of another committee aimed at addressing broker fraud.
“These brokers and carriers are getting away with murder toward the trucking industry,” Kinkead said. “Truckers come into the industry and leave in two or three months because there’s no way to pay your bills. Whoever has the ability to start a task force, please start a task force on brokers.”
What’s next?
The Truck Leasing Task Force had been scheduled to have its final meeting on Nov. 20. However, there was discussion toward the end of the Wednesday, Oct. 30 meeting that the task force needed more time to prepare its final report to the Federal Motor Carrier Safety Administration.
Now, the task force is expected to have an abbreviated meeting on Nov. 20 and a final meeting about two weeks later. The additional time also will provide an opportunity for the Consumer Financial Protection Bureau to present additional findings from its research.
At a previous meeting, Ryan Kelly of the Consumer Financial Protection Bureau said that these agreements are set up with a goal for the driver to fail.
“If a model fails 90% of the time, it’s designed to fail,” he added. “It’s not an accident. That failure rate is unheard of.” LL
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