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September 20, 2001 Headlines---
Red Code Continues to Shut Down Leasing Companies Server/e-Mail Financial Federal Reports Record Earnings, up !8% from Previous Year Balboa Capital New Complaint plus Balboa Capital Employee “talks” Excerpts from Equipment Leasing Association Thursday Newsletter United Association of Equipment Leasing New By Laws for Consideration Amembal Capital Announces Line with Agstar #### denotes press release---- ______________________________________________________________ Leasing Companies continue to be affected by Code Red Worm spreaking by users opening attachments. URGENT! PLEASE READ ENTIRE MESSAGE! Thank you to all employees who have heeded prior messages regarding virus alerts and remain alert to the threat of the new virus known as "Nimda". We must all continue to exercise caution when it comes to e-mail security and viruses. Several private & public agencies reported the virus struck computers Tuesday in the United States. Within the past 24 hours, "Nimda" has affected over 37,150 computers in North America and continues to propagate. HOW IS CIT AFFECTED? * Web browsing has been temporarily disabled throughout CIT and will remain disabled until a cure is received from the vendor or alternative measures have been implemented. * Approximately 48 Livingston servers have been infected with the virus and other locations are tabulating their results * All CIT's E-Commerce websites remain online including www.cit.com Presently, our anti-virus software vendor has not yet created a signature file that fully cures this dangerous virus. Thereby, we cannot guarantee the safety of our internal network hence the disabling of web browsing. This measure is essential due to the fact that this virus may enter our network by employees surfing on infected web servers unbeknownst to the user. It is important for everyone to know that STS is working around the clock to fight this new and dangerous virus. We have created and tested several homegrown programs in an attempt to reduce the spread of the virus and its impact on our networks. In addition, contingency plans are in full effect and we are working with the Business Continuance Group to identify the criticality of our resources and the priority at which these resources come back online. Should you receive a pop-up message advising the detection of the virus on your computer, please run the virus scan immediately! Should you need assistance running a virus scan, please contact the Customer Service Center. In conclusion, if you have any questions or concerns, please contact the Customer Service Center ( <mailto:call.center@cit.com> call.center@cit.com), Information Security ( <mailto:information.security@cit.com> information.security@cit.com) or CITVirusAlert ( <mailto:citvirus@cit.com> citvirus@cit.com) mailboxes. Thank you for your cooperation. ### ########################### ################# Financial Federal Corporation Announces Record Earnings For The Fiscal Year Ended July 31, 2001
NEW YORK--(BUSINESS WIRE--Financial Federal Corporation ("FIF" - NYSE), a nationwide, independent financial services company specializing in equipment finance and leasing for middle market businesses, announced record net earnings of $31,616,000 for its fiscal year ended July 31, 2001, an 18% increase over the $26,722,000 earned last year. Diluted earnings per share for the fiscal years ended July 31, 2001 and 2000 were $1.75 and $1.52, respectively, an increase of 15%. Finance receivables originated during the fiscal year aggregated $736 million. Finance receivables outstanding, before allowance for possible losses, increased 16% to $1.3 billion at July 31, 2001 from $1.1 billion at July 31, 2000. Receivables on non-accrual were 2.6% of total finance receivables at July 31, 2001, compared to 2.2% at April 30, 2001 and 1.4% at July 31, 2000. Net credit losses for the fiscal year, expressed as a percentage of average receivables outstanding, aggregated 0.17% compared to 0.06% for fiscal 2000. Delinquent receivables (more than 60 days past due) as of July 31, 2001 aggregated 1.9%, compared to 2.3% at April 30, 2001 and 1.5% at July 31, 2000. Paul R. Sinsheimer, CEO, remarked: "We extend our heartfelt sympathies to those who have suffered the loss of loved ones in the attack on America on September 11, 2001. We commend the efforts of the police, firefighters, emergency and other workers and volunteers who are selflessly giving of themselves to rescue others. "While the events of the past week have not directly affected us, it is difficult at this time to determine how these events will impact our business, the capital markets and the overall economy." This document contains forward-looking statements, involving management assumptions, risks and uncertainties. Readers are referred to the documents filed by the Company with the SEC, specifically the most recent reports on Forms 10-K and 10-Q, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. Financial Federal Corporation specializes in financing industrial, commercial and professional equipment through installment sales and leasing programs for manufacturers, dealers and end users nationwide. In addition to its New York office, the Company has six full-service operations centers in Texas, Illinois, New Jersey, North Carolina, Georgia and California, and numerous additional marketing locations throughout the country. For additional information, please visit us at www.financialfederal.com. ### ############################## ##################### BalboaCapitalBitesMe.com http://www.leasingnews.org/images/Jerry/Welcome.htm Leasing News has contacted Balboa Capital. The company position is they do not even want to say they have” no comment.” They do not want to make any comment to Leasing News whatsoever. Period. editor. ~~~ New Complaint Jerry isn't the only one with a complaint against Balboa. The following events started with an application dated July 2001. Balboa Capital provided a commitment letter to an applicant we were both both wooing. Their rate factor that worked out to 13.7%. They doc'd the deal at 27.5% and then sent a modification when the payment was questioned, reducing the payment to 18%. I have copies of the commitment letter, contract and modification to document these allegations. This all happened in August 2001. When the deal closed, included in the itemization of closing charges was a $651.00 "Loan Fee" that was the customer was told was to cover documentation expenses. The customer subsequently received an invoice for UCC filing fees and another invoice for the inspection fee. According to the customer, he was told the rate "works out to a little over 9%" which is why he took Balboa's deal over mine without comparing payments (I told the customer accurately that my rate was 10.2% and backed it up with an amortization schedule). The customer also claims he was told that there was no prepayment penalty, which he took that at face value. He should have read the contract which plainly states that it is non-cancellable and that all payments will be collected. When the customer called to get a payoff, he was told, "there are 46 payments due, that's your payoff". I have urged the customer to have his attorney contact Balboa regarding the "bait and switch" on the rate. Needless to say, this businessman has learned some painful lessons and I am sure that there are plenty of his friends that will probably never lease again, and if they do, it certainly won't be with Balboa. If you have the contact information for Christopher Parsons (Balboa's attorney per your news piece), I would like to give it to this customer so that he can pursue a direct contact if he chooses. Thanks... JB John Bergwell Fin-Con Capital, LLC 913-219-5169 Phone 913-498-0087 Fax ~~~ .I've seen the light and now it **** me off when i hear that a business will not lease any more because of what happened to them at balboa....they think that all lease co's are the same and it hurts the total industry. until more people (consumers)speak up about unethical lease co's nothing will be done......but at the same time nobody wants to get sued....including me. therefore, i thank you for your hard work in this industry and please keep it up. Name Withheld It always has amazed me that while many funding sources know that a lessor is less than ethical they either cut them-off and give other funding sources good references or worst yet continue to deal with them. Balboa is a perfect case of this. I could name many others as bad or worse. Anyone in the industry already knows about Balboa before all this . it is just now coming to the light of day. The worse part is that lessees will be turned off to any future leasing. I hope we can turn this trend around. Name Withheld I am a former sales person of Balboa Capital. The business practices that took place in that corporation is enough to make you loose your lunch. The two owners could possibly write a book on the art of deception and theft. Sales meetings were held just to discuss how to write more FMV transactions knowing that the client wanted a $1 out. Compensation was based upon the % of FMV business a sales person wrote. Since the turn over rate is about 100% by three years in their sales department. The owners kept every dime of the FMV generating about $300k a month. They have built a big wheel and it will take many years to dismantle it. I believe in Karma and there will be alot of bad Karma coming there way. The rest of this industry suffers with every deal that Balboa writes. Former employee.... A Current Balboa Capital Employee: ( Response to be kept anonymous as it is not necessarily the opinion or comments of management ) I can confirm that "Yes" these practices did exist, but they were not wide spread, were not instructed from the Top down and haven't existed for quite some time. I know that many of these "ex-Balboans" replying to your emails are those fired from Balboa for these very acts. Many of these ex-disgruntled sales reps screwed their clients by discarding the $1 buyout, were fired as a result. They then started their own company or went to work for others where their only advantage to win the sale was to "bad mouth" Balboa for the very tactics they used and passed them off as the "norm" at Balboa. A cowardly way to win a deal. Too bad they weren't good enough sales people to win the deal on merit and salesmanship. I don't know if Mr. Gonzales was mislead in some way, I certainly hope not. But I can say I've personally been accused by a lessee of doing the same but was able to quickly provide proof from proposals and sign commitment letters that the deal was in fact negotiated as FMV. My customer tried to take advantage of the situation and avoid their legal obligation by spreading similar false rumors. A perfect case of the lessee being the unethical one and not the leasing person. In response to "such practices have to end". They did end a long time ago. Balboa Capital has not had a separate buyout addendum from the Master lease in over 6 years. And that change was a direct result of realizing such practices were taking place. Balboa was one of the first to implement the "plain English" lease documents with the buyout included on the front page in clear view. To be so desperate as to bring up 6+ year old business practices should be embarrassing to those suggesting them. We all have our stories of people using questionable sales tactics to win deals. Sometimes it's the hardest part of the job, selling against these "bad apples" in the industry. But to discriminate against an entire group for the questionable practices of a few is ignorant at best. One must also consider the source which in this case is mostly ex-disgruntled employees with a grudge to bear. Was it tolerated from the top? I don't know, but I can assure you it was never taught, preached nor encouraged and those caught were fired. To imply otherwise is absurd conjecture. >From many of the comments I've read I can discern who the authors are and can say with a fair amount of assurance that several of them were the very people that were fired for such unethical practices. It is also important to note that many of the same people have recently been named on your list for carry on these questionable practices at other companies. Again, too bad they can't sell on merit and product and have to resort to questionable tactics that adversely effect the entire industry. It's ironic that we're all forced to defend ourselves against those lessees and vendors that generalize all leasing companies as being unethical because of the actions of a few, yet turn around make the same generalization about one of our own. It's all quite hypocritical. We all need to take an active roll in cleaning out the bad seeds and practicing good ethical business. In such a strained credit economy the deals are fewer and further apart and harder to get approved. It's in times like these that the weak will succumb to their old habits and effectively "smoke" themselves out. That's when we'll see who the real perpetrators are. I'm certain it will not be a Balboan. Name With Held -------------------------------------------------------------------------------------------------- Excerpts from the Public Equipment Leasing Association Thursday Newsletter ( please note, only members can access the website with their password., however this information you may find very useful in this form. editor ******************************** ELA E-Leasing Newsletter 9/20/01 ******************************** The ELA E-Leasing Newsletter is published every Thursday and is sponsored by the Equipment Leasing Association and its co-sponsor. To Get Full-Text Stories, go to the web page associated with the story you wish to read. The links to news stories require an ELA MEMBERS-ONLY NAME AND PASSWORD. To receive a password, please contact Daniel Aubain at database@elamail.com or phone 703/516-8377. NOTE: Address change/unsubscribe instructions and contact information can be found at the end of this e-mail. If you received this e-mail (but it was NOT forwarded to you by someone else) you are ALREADY subscribed. *********** The E-Leasing Newsletter is SPONSORED by: ************** Nassau Asset Management Recovery and Remarketing Specialists 1(800)462-7728 or 1(800)4-NASSAU GO HERE>>>>>> http://www.nasset.com WE GET RESULTS!!!!!!!!! Servicing The ELA for more than 10 years!!!!!! ******************************************************************** ****************************** 1. ELA Urges Congress and the Administration to Help Airlines Following Terrorist Attacks ****************************** In a letter to the Congressional leadership and high ranking Bush Administration officials, ELA President Michael Fleming expressed ELA's support of "policy initiatives which are intended to financially stabilize the U.S. commercial airline industry in light of the attack on the United States that took place on September 11, 2001." The letter was sent following a conference call on Wednesday with members of the ELA Aviation and Large Ticket Business Council Steering Committees who unanimously agreed that ELA should convey a message in support of the airline industry to government officials. In the letter, Fleming also urged Congress to clarify the industry's potential liability pointing out that investors need certainty." With the airline industry posting losses in excess of $1 billion in the first half, any further dramatic contraction would certainly have a negative effect on aircraft residual values and the numerous ELA member companies who have provided tens of billions in lease financing to the airline industry," said Steve Fier, ELA's V.P. of federal government relations. In light of leasing industry concerns and in recognition of the public service and integral role the commercial airline industry plays in our nation's transportation infrastructure, Fleming urged Congress and the Administration to act promptly. Another conference call is scheduled for Friday as ELA works to stay on top of breaking developments. Access a copy of Fleming's letter at http://www.elaonline.com/govtrelations/federal/eyeonwash.htm - type in your username and password, click on "Aid to Commercial Airline Industry." *********** The E-Leasing Newsletter is SPONSORED by: *********** Ask not what you can do for Quiktrak, but what Quiktrak can do for you! Inspections: Equipment, Collection, Site & Vendor Superior online service: ordering, job status & report transmittal Largest base of qualified inspectors in the U.S. & Canada Only service provider to guarantee an inspector onsite within 24 hours of your order Contact Quiktrak at 800-927-8725 or www.quiktrak.com http://www.quiktrak.com/www/sp/amazing1.html ***************************************************************** ****************************** 2. ELA Prepares To Provide Input on Economic Stimulus Package--You Can Help! ****************************** With Administration officials and Congressional leaders just beginning discussions regarding the components of an economic stimulus package, ELA plans to hold a conference call next week with the Federal Tax Committee to identify policy changes the association can propose to Congress that would be beneficial to the economy and helpful to the leasing industry. According to ELA's V.P. of Federal Government Relations Steve Fier, only provisions agreed to by both sides of the aisle stand a chance of making it into the final package and if a proposal appears to be purely self-serving, it will be dead on arrival. Ideas currently being floated include repeal of the corporate AMT, repeal of the corporate and individual capital gains taxes and an investment tax credit. But no draft bill has yet been developed as Congressional leaders and Administration officials have just begun the process. Issues the ELA Federal Tax Committee will likely explore would be of the type that are intended to encourage investment in equipment and help stimulate the economy--issues like shortening depreciation lives and a suspension of the Fourth Quarter convention. If you have any ideas along these lines, please send them to Steve Fier by close of business on Monday, September 24th in the form of a one page paper describing the issue, current law, the legislative proposal and how it would presumably stimulate investment in productive assets. [sfier@elamail.com or fax 703-527-2649] ****************************** 3. ELA Members Begin to Rise to Call to Action ****************************** Several ELA members have now written their members of Congress urging co-sponsorship of ELA's Pickle Repeal Bill and passage of Bankruptcy Reform using ELA's new Grassroots website: http://www.elaonline.com/govtrelations/federal/eyeonwash.htm John Colton, president of Colton Capital had this to say about using the ELA website: "I found the letter writing capabilities of the ELA Grassroots website to be very, very, easy to use, and I am no computer wiz by any means. All you need to do is follow the directions." Your industry and your business need your voice to be heard now--write your members of Congress today! http://www.elaonline.com/govtrelations/federal/eyeonwash.htm Contact Bridget Alexander, ELA's Government Relations Coordinator, at (703) 516-8381 or via e-mail at balexander@elamail.com with questions. ****************************** 4. Bankruptcy Reform Hits New Wall ****************************** In the wake of last week's terrorist attacks, Bankruptcy Reform legislation has been placed on the Congressional backburner. A number of House and Senate Judiciary Committee members appointed to serve as conferees also serve on the Foreign Relations Committees that have been and will for the foreseeable future continue to be immersed in matters related to the September 11th terrorist attacks. Between now and adjournment it appears that the Congressional agenda itself will be focused primarily on three things--appropriations for fiscal year 2002 (which begins October 1st); prosecuting a war on terrorism and stimulating the economy. However, ELA urges its members to send letters in support of the legislation to their Representatives and Senators as some Congressional opponents of the legislation are urging that the bill be dropped in light of the state of the economy, arguing that now is not the time to make it more difficult for individual's to avail themselves of bankruptcy protection. A model letter for your use is available on ELA's website http://www.elaonline.com/govtrelations/federal/eyeonwash.htm - type in your username and password, click on "Bankruptcy Reform". ****************************** 5. War Alliance May Result in EU Not Pursuing FSC/ETI Trade Dispute For Now ****************************** While it remains unclear whether or not the U.S. intends to file an appeal with the WTO regarding its ruling that the FSC Repeal and Extraterritorial Income Exclusion Act constitutes an illegal export subsidy, many trade observers in Washington believe that in light of the global coalition being formed to attack terrorism, it is unlikely the EU would go ahead with the imposition of sanctions should the WTO decision stand. Over the past few weeks, Congressional Republicans and Democrats on the House and Senate tax writing committees have sent letters to the U.S. Trade Representative urging the Administration to appeal the WTO ruling in light of rumors that the Administration is inclined to negotiate a settlement with the EU rather than file an appeal. According to ELA's V.P. of Federal Government Relations Steve Fier, at a meeting earlier this week a high ranking official from the office of the USTR told a group of lobbyists that the Administration has not made any decision and is still waiting for the Treasury Department to weigh-in on the matter. Lobbyists also left the meeting with the clear impression that the events of September 11th have also over taken this issue for the time being, but there is a time certain by which the U.S. must make a decision or lose its right to appeal. ****************************** 8. ELA Releases New Research on the Propensity to Lease ****************************** The updated and expanded Propensity to Lease (PTL) study, sponsored and funded by the ELA, has just been released! This study offers a comprehensive assessment of the characteristics of lessees and end-user industries that are more likely to employ lease/financing for their capital equipment needs. A number of profile analyses were conducted describing the probability of a company's leasing behavior by certain key business attributes, including industry, size, age, geography, and payment behavior. The PTL study will enable equipment leasing and finance organizations to better target their marketing activities. A Few Findings from the PTL Study -Companies with large capital needs are more likely to lease. -High risk companies are more likely to lease -Dynamics in the small ticket transaction market differ from those in the larger ticket transaction market -The PTL Index generated by Dun &Bradstreet's predictive model help identify marketing opportunity Other findings and results from the PTL Study will be discussed in greater detail at a breakout session at ELA's Annual Convention to be held in Boca Raton, Florida on October 28-30, 2001. To order your copy of the PTL Study, go to the ELA Store from ELA's website http://www.elaonline.com/ or contact Janet Fianko at jfianko@elamail.com ****************************** 9. Convention Deadline Approaching! ****************************** SEPTEMBER 24 is the deadline for being included on the pre-registration list--Get Going Now! "When the Going Gets Tough..." ELA 40th Annual Convention October 28-30 Boca Raton Resort & Club Business is waiting for you in Boca, and we can prove it! Just check out the Convention Attendee "Lite" list at http://www.elaonline.com/events/2001/AnnConv/attendees.cfm, containing the names of everyone currently registered for the convention. These people are all headed for the leasing industry¼s premier networking and informational event. Is your name there? If not, Get Going and register TODAY for the ELA 40th Annual Convention. Registrations received by September 24 will be included in the pre-registration list, which includes full contact information and will be available ONLY to those individuals who are registered for the convention. Remember, "When the Going Gets Tough"...the Tough Don't Stay Home! Complete convention information, including an important update on Hotel Accommodations, is now available online at http://www.elaonline.com/events/2001/AnnConv/ ****************************** 10. New Online Discussion Group Focuses on UCC Revised Article 9 ****************************** Having trouble sorting out all the changes to UCC Revised Article 9? You are not alone! Nearly 350 people from 88 locations participated on a 90-minute telephone seminar that focused on making the transition to UCC Revised Article 9. You can continue the dialogue by joining a new ELA online discussion group. Post your questions and comments and get answers and opinions from your colleagues. To join the Revised Article 9 Discussion Group click here: http://elaonline.com/discussions/Article9list.htm ****************************** 12. ELA Calendar ****************************** For more information on the events listed below, or to view ELA's entire calendar, visit the ELA Conference & Training Home Page at http://www.elaonline.com/events/ and click on the links to programs of interest to you. October 1-3, 2001 Principles of Leasing Workshop Hyatt Regency Woodfield, Schaumburg, IL http://www.elaonline.com/events/2001/principles/ October 3-5, 2001 Municipal Leasing Forum La Mansion del Rio, San Antonio, TX http://www.elaonline.com/events/2001/municipal/ October 11, 2001 MAEL's 20th Annual Meeting The Metropolitan Club, Sears Tower, Chicago, Illinois http://www.mael.org
October 17, 2001 Managing the Leasing Relationship Hilton Fisherman's Wharf, San Francisco, CA http://www.elaonline.com/events/2001/manage/index.cfm October 28-31, 2001 40th Annual Convention Boca Raton Resort and Spa, Boca Raton, FL http://www.elaonline.com/events/2001/annconv/ November 7-8, 2001 2001 Fundamentals of Credit in the Equipment Leasing & Finance Industry Four Points Hotel Chicago O'Hare, Schiller Park, IL http://www.elaonline.com/events/2001/fundcredit/ November 13-14, 2001 Annual Investors Conference The Westin Copley Place Hotel, Boston, MA http://www.elaonline.com/events/2001/investor/ **************************************************** Submit your own company news story for ELA'S E-LEASING NEWS! Visit http://www.elaonline.com/news/newsaddedit2.cfm **************************************************** *** FOR MORE NEWS For more leasing news, visit ELA Online's News Home Page at http://www.elaonline.com/news/ *** SUBSCRIPTION INFORMATION To update your current subscription, please e-mail your name, company, and the e-mail address to Daniel Aubain at database@elamail.com or phone 703/516-8377. Fax: 703/527-2649. To unsubscribe, please visit http://www.elaonline.com/discussions/MembersOnly/#ELAnewsletter. If you have other questions or comments relating to ELA E-Leasing Newsletter, please e-mail Amy J. Miller, Vice-President of Communications, at amiller@elamail.com This newsletter is free to ELA members. Forward it to a co-worker! Copyright 2001 by the Equipment Leasing Association http://www.elaonline.com/ Phone: 703/527-8655 Fax: 703/527-2649 *********** The E-Leasing Newsletter is SPONSORED by: *********** Southfork Asset Management Corp. Recovery & Remarketing Specialists Nationwide Coverage * Immediate Turnaround * High Resale Value Lease and Loan Default * End-of-Lease Return "Bringing Asset Management To The Next Level!" (877) 99-ASSET * (877) 992-7738 * Click Here >> http://www.southforkasset.com ************************************************************* ### ############################# ######################## AGSTAR AND AMEMBAL CAPITAL CORPORATION ANNOUNCE ALLIANCE
AgStar Financial Services, a leading financial services provider for the agricultural industry, and Amembal Capital Corporation (ACC), a premier provider of equipment lease financing and education announced today that they have formed an alliance. Under the new agreement, ACC is the primary referral organization of AgStar for transactions outside their primary focus; AgStar is the primary funding organization of ACC's agricultural lease transactions. Each company's clients will benefit from having a single point of delivery of a broader array of lease products and structures for varying purposes. The new relationship allows AgStar to expand its customized leasing solutions to meet the lease financing needs of agricultural clients. ACC will be able to bring agricultural leasing alternative to the broker community and its other lines of business. "AgStar is constantly seeking new opportunities to enhance the flexibility and value of our lease products and services, " said Paul Erickson, Vice President of Business Development for AgStar Financial Services. "This innovative approach to expanding the leasing solutions available to our clients is designed to save them time and money and ultimately strengthens AgStar's position as a leading provider of financial products and servicesin the agricultural industry. " AgStar provides leasing solutions to agribusiness, production agriculture and agricultural-based manufacturers and dealers on a national basis. Listening to customers and working with them to understand the diversity of their leasing needs is the foundation upon which AgStar continues to build their success. Teaming with ACC reflects the company's ability to identify and meet the needs of their customers. The alliance also opens new market opportunities for both alliance partners. AgStar's agricultural knowledge and underwriting expertise, combined with ACC's solid knowledge of the equipment leasing industry and dedication to lease education and training, create progressive new business opportunities for manufacturers, vendors and brokers to develop new relationships in the agricultural value-chain.
CONTACT: Larry Grant Phone Number: 801-530-7701 ( courtesy of ELAonline.com ) #### ###################### ########################## ______________________________________________________________ TO: UAEL Members FROM: Joan Dalton, Managing Director RE: PROPOSED CHANGES TO UAEL BYLAWS AND DISPUTE RESOLUTION PROCEDURES Voting to take place at the UAEL Annual Meeting on Saturday, October 27th in San Antonio, TX during the Annual Conference & Exposition Proposed change to Standards of Professional Practice Standard #8 (addition to standard italicized): We will never knowingly make false or misleading statements or withhold information vital to a business decision, even if such information becomes known to us after the funding of a transaction, and we will correctly represent our relationship with all parties to the transaction. Proposed Changes to Dispute Resolution Procedures Option to have Complaint Resolved by a Single Decision Maker 1. Yes, the parties should have the ability to agree to have an authorized Complaint be resolved (not just mediated) by a single decision maker, with this alternative operating as stated in Items 2-7 below. 2. The panel of available decision makers should exist in writing, and consist of members of the then existing Standards Committee and any other volunteer representative of a UAEL member (or past representative of such a member), who is approved by the existing Standards Committee. 3. At the time of submitting its Complaint to the Standards Committee, the complainant shall specify (on the Complaint) whether or not the complainant agrees to have the matter resolved by a single decision maker. 4. If the Complaint states that the complainant agrees to a single decision maker, then, at the time of submitting its Answer to the Complaint, the respondent shall specify (on the Answer) whether the respondent agrees to have the matter resolved by a single decision maker. 5. If both parties agree to have the matter resolved by a single decision maker, then the chairperson of the Standards Committee shall send each party a list of nine (9) potential decision makers from the panel referenced above. Each party has the right to strike three people from the list, and shall rank the remaining six people on the list in order of preference, and shall deliver their respective altered lists back to the Standards Committee within (10) business days after such mailing. 6. The Chairperson of the Standards Committee will select the decision maker from the altered lists based first on a weighted average of the parties' preferences, and thereafter on the availability of the person selected. The Chairperson shall advise both parties of the selected decision maker. 7. Thereafter, this decision maker shall resolve the matter according to (a) the UAEL Dispute Resolution Procedures then existing, with the single decision maker being substituted for the entire Standards Committee, (b) keeping the Standards Committee Chairperson promptly advised of all developments, and (c) being free to ask the Chairperson any questions about the matter and procedures. All appeal rights in the UAEL Dispute Resolution Procedures shall remain in full force and effect. Proposed Change in Response Time: Section 6(c) of Dispute Resolution Procedures If a majority of a three-member group designated by the Chairperson determines the Complaint may involve a Standards' violation, the Chairperson, through UAEL headquarters, shall send a copy of the Complaint and supporting materials to each Respondent, by certified mail with return receipt requested, with notification that the Respondent should file an Answer with the Committee, within ten (10) working days after mailing such notice, and that if no Answer is made, the charges may be deemed admitted. If no Answer is received at UAEL headquarters within twenty-two (22) calendar days, a second notice shall be mailed to each Respondent, stating that if no Answer is received by UAEL headquarters within ten (10) calendar days, Respondent may be held to be in violation of the Standards and the Procedures, and subject to action by the Committee pursuant to section 9(b) below. Filing Fees - Member vs. Member Propose that the existing complaint filing fee of $100 be waived for UAEL members. This is to be promoted as a member service. Filing Fees - Non Member vs. Member Propose that the existing filing fee of $100 be increased to $250 per complaint made by a non-member. Multiple Verbal Complaints - No Formal Written Complaint Upon 5 verbal complaints on a member company the Standards Committee may initiate their own review and refer the matter to the Board with a recommendation as whether formal procedures should be initiated. If the Standard Committee recommends that formal complaint may be filed the board, at it's d iscretion, is authorized to initiate a formal complaint against the member on behalf of the membership of UAEL. For repeat verbal complaints regarding the same company to UAEL Headquarters, UAEL shall send a letter to the principle of the firm stating they may have violated 1 or more of the Standards of Professional Practice. Behind this letter UAEL should log the time and date of these complaints. Sample Letter This letter is to serve notice that UAEL has received multiple complaints regarding your firm. The Association believes you should be aware of these complaints and as a member be mindful of your agreement to the Standards that UAEL upholds. At this point there has been no formal complaint. No ac tion is required on your part. If a complaint is formally received in writing you will be ask to respond in writing within a specific time. The complaints received have been regarding (standard). Please read your Standards of Professional Practice again and the Dispute Resolution Procedures which can be found on our website at www.uael.org. You are welcome to call or write UAEL regarding this communication. Joanie Dalton - Managing Director UAEL - United Association of Equipment Leasing 520 Third Street, #201 Oakland, CA 94607 (510) 444-9235 x27 (510) 444-1346 fax joanie@uael.org _____________________________________________________________
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