Judge Finds Truck Lease Plan Violates Federal Regulations
A federal judge has ruled that vehicle leasing arrangements between Ledar Transport, a Missouri-based truckload carrier, and some of its drivers violated federal truth-in-leasing regulations.
The injunction, which remains in effect, is the first to be issued against an interstate trucking company based strictly on evidence that the carrier’s leases were not in compliance with the 1996 leasing law.
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The judge cited more than 30 violations, mostly related to terms of payment and the company’s failure to properly disclose owner-operators’ rights under the leases. Lease agreements are commonplace in trucking and this ruling could lead other fleets to review their programs.
U.S. District Judge Fernando J. Gaitan Jr. on Nov. 3 ordered the company to stop using any of the leased equipment for deliveries until it brings its lease-purchase agreements into compliance.
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