CFPB Looking Into Predatory Lease-Purchase Agreements

CFPB Looking Into Predatory Lease-Purchase Agreements

The Consumer Financial Protection Bureau (CFPB) presented findings on predatory lease-purchase agreements in the trucking industry to the Truck Leasing Task Force on July 18th. The presentation highlighted concerning practices that benefit carriers over drivers.

The Task Force, established to address predatory practices in the trucking industry, received over 40 lease-purchase agreements for review. The CFPB identified several concerning aspects of these agreements, including:

  • Lack of clear financial disclosures for drivers.
  • Broad conditions that could trigger defaults by drivers.
  • Provisions allowing carriers to easily repossess trucks upon termination.
  • Use of escrow accounts to prioritize carrier repayment.

These elements disadvantage drivers and can trap them in debt. The CFPB indicated that the confusing language in the agreements makes it difficult for drivers to understand the true financial obligations they are entering into.