We confirmed the "rumor," which actually started when they closed Tilden.

 

From Leasing News List:

 

2/2001) closes former Tilden operation in Hauppauge, NY (11/98) purchased by GE Capital 5/2000 no more re-brokered applications, except from one or two sources, such as Steve Dunham's Leasing Associates )

 

It is Now OFFICIAL--No more deals after December 14 for perhaps as many as 300 brokers.

 

Joing the ranks of Advanta and others, Colonial Pacific/GE Capital is " Going to Chicago, and Sorry Can't Take You."

 

Full Story on Monday-----

 

November 29, 2001

 

Dear GE/CPL Customer:

 

GE Capital is consolidating its Portland, OR based Colonial Pacific Leasing (CPL) business with its other small/mid ticket leasing business, Chicago based Office Technology Financial Services (OTFS).

 

After careful consideration of our existing product and service offerings against market conditions, we determined that it was important to sharpen our focus on our most strategic business customers.

 

We therefore regretfully inform you that we are unable to accept new submissions from your business after December 14, 2001.

 

We are very grateful for the opportunity to have served you.

 

Over the next several months, the CPL and OTFS teams will work with you to make this transition as smooth as possible.

 

The CPL team wishes you success your future endeavors.

 

Sincerely,

 

Your friends at GE, making energy for better living.

 

 

@home.com Users May be Shut Off Any Hour

   Bush Signs 2-Year Internet  Tax Ban Extension

       Comdisco Receives Extension of ``Exclusivity Periods''

           Alert Features---Opinions from Readers

              Growing Controversy Over Joe Woodley to Direct UAEL

                Providian Capital Gets Capped and “Restricted”

                  Online Shopping Looks Merry and Bright

 

 

  Special Report:   Capital Stream/Equidity/Live Capital

                                         by Kit Menkin

 

#### denotes press release

 

 

@home.com Users May be Shut Off Any Hour

 

Creditors to seek OK to unplug ExciteAtHome

 

By the, Associated Press

 

 AN FRANCISCO - A bitter battle between the creditors and business partners of bankrupt ExciteAtHome is threatening to unplug the cable network's high-speed Internet service for 4.2 million subscribers as early as this afternoon.

 

ExciteAtHome bondholders owed more than $1 billion hope to convince US Bankruptcy Judge Thomas Carlson that shutting down the company's high-speed cable network is the best way to start a bidding war for the system.

 

A hearing on the request is set today in San Francisco, but Carlson might not rule until next week. Or he could shut down the service at his call.

 

It's unlikely Carlson will shut down the service, said Frank Thomas, one of the leaders of an ExciteAtHome shareholder committee that submitted a reorganization plan outlining a way for the company to emerge from bankruptcy as an independent company.

 

''This is just a bunch of huffing and puffing by some very big elephants,'' said Thomas, a Heathrow, Fla., money manager. ''It's in the best interest of the nation if ExciteAtHome becomes an independent company.''

 

But one of the three biggest cable companies that sells high-speed Internet access through the AtHome network yesterday began preparing its customers for the worst.

 

Comcast advised its customers to back up their e-mail files and personal Web pages in case the AtHome service is shut down. It also set up a Web link to provide its AtHome customers with a dial-up Internet connection through NetZero. NetZero offers 10 hours of free Internet access per month.

Cox Communications, another key ExciteAtHome partner, eventually plans to switch its AtHome customers over to an independent cable network under construction, but that service won't be available until next year.

 

_______________________________________

 

 

Bush Signs 2-Year Internet  Tax Ban Extension

 

By  Beth Cox, eCommerce News

 

 

As expected and with a simple statement declaring that holiday shoppers will not be burdened by new taxes on their online purchases, President Bush has signed a two-year extension of the ban on new Internet taxes.

In his statement, Bush said: "Online spending is estimated to account for 15 percent of total holiday purchases this year. The bill will protect American consumers from an unwanted tax surprise when they purchase gifts online for friends and family."

The ban had expired last month when lawmakers couldn't agree on provisions for the collection of sales taxes on online purchases, which remains a thorny issue. A coalition of states is in the process of simplifying their tax codes with the hope that Congress eventually will allow them to collect sales taxes on remote sellers.

Computing technology industry group CompTIA welcomed the presidential signing of "The Internet Tax Nondiscrimination Act," calling it a great holiday gift for American consumers, and urged lawmakers to deliver yet another present - a pro-consumer, pro-business investment economic stimulus package - before Congress leaves for the holiday recess.

 

( Cities, Counties, States were not happy about the loss of sales tax revenue,

  as many leasing companies also expressed concern about “unfair competition.”

 editor )

 

----------------------------------------------------------------------------------------------------

######   ################################   ##################

 

Comdisco Receives Extension of ``Exclusivity Periods''

 

 

ROSEMONT, Ill

 

Company Now has Exclusive Right To File Plan of Reorganization Through

 

March 15, 2002

 

Court Approves Retention of Rothschild as Company's Investment

 

Advisors for Reorganization Plan

 

Comdisco, Inc. (NYSE:CDO) announced that yesterday the U.S. Bankruptcy Court for the Northern District of Illinois approved the company's request for an extension of the exclusive periods during which only Comdisco may file a plan of reorganization and solicit acceptances for that plan. These periods, which had been scheduled to expire on January 15, 2002 and March 15, 2002, have now been extended to March 15, 2002 and May 15, 2002, respectively.

 

Comdisco also announced that the Bankruptcy Court approved the retention of Rothschild, Inc. as investment advisors to the company to assist in the development of its restructuring plan. Goldman, Sachs will continue in its role as investment advisor to Comdisco for its asset sales.

 

Norm Blake, Comdisco's chairman and chief executive officer, said: "We are pleased that the court has granted this extension, which is customary in a chapter 11 case as complex as Comdisco's. We remain committed to a "fast track" reorganization and have already made substantial progress in our asset sales, including the sale of our Availability Solutions business to SunGard on November 15, and the ongoing sales evaluation process for our Leasing businesses."

 

Comdisco, Inc. and 50 domestic U.S. subsidiaries filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Northern District of Illinois on July 16, 2001. The filing allows the company to provide for an orderly sale of some of its businesses, while resolving short-term liquidity issues and enabling the company to reorganize on a sound financial basis to support its continuing businesses.

 

Comdisco's operations located outside of the United States were not included in the chapter 11 reorganization cases. All of Comdisco's businesses, including those that filed for chapter 11, are conducting normal operations. Comdisco is continuing to pursue other strategic alternatives to create value for its stakeholders, including the potential sale of all or some of its leasing businesses, as well as the restructuring of its Ventures group. The company has targeted emergence from chapter 11 during the first half of 2002.

 

About Comdisco

 

Comdisco (www.comdisco.com) provides technology services worldwide to help its customers maximize technology functionality and predictability while freeing them from the complexity of managing their technology. The Rosemont, (IL) company offers leasing and financial management services to key vertical industries, including semiconductor manufacturing and electronic assembly, healthcare, telecommunications, pharmaceutical, biotechnology and manufacturing. Through its Ventures division, Comdisco provides equipment leasing and other financing and services to venture capital backed companies.

 

###    ############################    #########################

---------------------------------------------------------------------------------------------------

 

Alert Feature---Opinions from readers

 

The Alert section is a GREAT idea.

 Bob <bob@first-cap.com>

 

___

 

I think Paul's  ( Paul Menzel, CLP, Santa Barbara Savings and Loan ) idea is a good one. We could be very effective in removing these crooks if we had advance notice of some of these scams.

 

As to a bank reference on a bank that you do not recognize - all banks have a register listing all the banks in the country. The listing gives addresses, telephone and fax #s, and list Officers and sometimes Directors. Ask your bank officer to look up a suspicious bank reference. There is a site on the web (www.anywho.com) that can do a reverse lookup on a telephone number. I use this site often.

 

Cary Sue Lavan

Home State Leasing Corporation

clavan@homestbk.com

 

____

 

I am an avid reader of leasingnews.org - wise enough to skip the gossip, but smart enough to pay attention to the important columns.

 

Recently, we received a corp. only online application from a company called Northeast Atlanta Auto Alliance out of Stone Mountain, GA in the amount of $160,000.  According to the D&B, the company started in the 1950s with 2000 revenues of about $35 million.  Yet, there was no rating, not a single payment experience, and zero filings.

 

The next day, we received an application from a broker for the same lessee in the amount of $52,000 for computers.

 

The following day, we received another application from a different broker for the same lessee for $75,000 for a phone system.

 

We called the lessee, and he indicated that he sent lease applications to six or seven different lenders, and whomever responded first with an approval won the deal.

 

We simply declined the application because there were way too many red flags (i.e. bank reference was odd, no website, triple submission, D&B, etc.).

 

I don't honestly know if this company is legitimate or not; I just wanted to alert you and your following of the potential dangers here.  Thanks for the great work you continually do.

 

Cordially,

Kit Nowicki

Chesterfield Financial Corp.

 

----  

 

I just finished reading my daily dose of the Leasing News,

and, as you probably are aware, I do not usually respond to

the information within it unless I find it to be a critical,

or at least relevant, issue (to me).

 

 In this case, I find that I have very strong feelings about the subject matter...

I agree with Paul Menzel, CLP that the Leasing News would be

a great place to list out bona fide fraudulent transactions,

but only if it is verified that they fit the label given!

For years, there has been discussion within our industry

regarding how to disseminate information amongst ourselves

about fraudulent transactions, dishonest brokers, phony

funders, etc.  The point always stopping any of the

Associations from having this forum has been concern over

liability, the appearance of any kind of anti-trust

behavior, or just plain weakness.

 

Although I disagree with you and the Leasing News

occasionally, this publication serves a valid purpose and

market, and is obviously well-read by folks within our

industry.

 

 My only over-riding concern is and will always be

the accuracy, validity, and fairness of the reporting,

including when it comes to the unethical, immoral and

downright despicable act of fraud.

 

Sincerely,

Jon

 

{There is no need to withhold my name!}

 

Jon S. Haas, CLP

jonclp@triad-group.com

(386)860-6537

 

 

( Leasing News has a bulletin board that contains complaints, often both sides.  All

  complaints are verified, substantiated, often by several sources, and undergo

  due diligence to the best of our ability.  We have no program that allows a

  reader to automatically post anything.  It all goes through the editor and the process.   Often complaints take several weeks to complete, and many wind up

  in the category of “disputes” and are not published. Our mission is

  to be fair and accurate. editor )

 

__________________________________________________________--

 

Growing Controversy Over Joe Woodley to Direct United Association

  of Equipment Leasing Association

 

I, too, am a fan of Joe Woodley...who isn't? But I agree with Mr. Coffman,

that a membership company should not be running a trade organization. Yes,

it's probably more cost efficient, it's easy because he knows the

organization and its members, but there should be a separation.

 

 I don't  believe, no matter what you say, that anybody can be completely objective

if it comes down to an issue that involves the UAEL and something that

would affect Mr. Woodleys company. The UAEL should take the time and money

and hire an outside CEO.

 

 This has absolutely nothing to do with Joe  Woodley's ability, I would make the comment if any member organization  became CEO.

 

Sincerely,

 

Deborah J. Monosson

President

BOSTON FINANCIAL & EQUITY CORPORATION     

20 Overland Street

Boston Massachusetts 02215

617-267-2900

617-437-7601 Fax

 

Visit us at http://www.bfec.com

 

_____  

 

WAEL/UAEL ( Western Association of Equipment Lessors---the name when the association was West Coast, and for a time being, did not accept brokers into

the association.editor ) until recently was run by association professionals.

The last three were CAE.  Art  ( Schwartz ) knew something about leasing (Jon  (Bednerik ) went elsewhere and never had much knowledge of leasing.  Ray ( Williams ) would tell you he was an association executive, a professional, and was far from a lease expert.

 

When I knew Joe Woodley, he was the owner and worked the broker market for business.  He liked to play golf and got along with everyone very well. He hasn’t been active recently, but neither have I, but that is not the issue. 

 

The board of directors should have gone through the interview process, advertised,

and chosen a association  professional rather than an amateur.

 

Past President WAEL/UAEL

( Name With Held )

 

 

_____

 

I believe that the opportunity or at least the appearance of a conflict of interest surely exists in this arrangement.  I don't know Bill Grohe but noticed that he also is listed as an employee of Westover.  I feel that the board of directors should search for a better remedy for the associations problems before turning control over to one of it's member companies.  Trade associations need to have unbiased objectivity to serve all of it's membership.

 

This is what I was referring to regarding Bill Grohe's apparent employment with Westover.  Do you think that the association will have a name change or just sign rights like the sports stadiums (Westover UAEL)?

 

 http://www.westoverfinancial.com/contacts.html

 

Mark A. Coffman

mark@chartercapital.com

714.624.5646

562.485.4200 fax

 

_____--------------------------------------------------------------------------------------------

 

Providian takes regulatory hit

 

High-risk cap for credit card giant

 

Christian Berthelsen, San Francisco Chronicle Staff Writer

 

Federal regulators have moved to limit the growth of troubled San

Francisco credit card giant Providian Financial Corp., ordering the company to cease acceptance of new accounts in its subprime credit card division and to

obtain regulatory approval before paying out investor dividends.

 

The agreement between Providian and the Office of the Comptroller of the

Currency, made public by Providian yesterday, limits the company's growth in all accounts to no more than 2.5 percent per quarter for the near future. By

contrast, Providian grew at a rate of 6 percent during the third quarter, according to an analysis by Credit Suisse First Boston.

 

The agreement also bars the company from marketing or accepting any new

accounts in its so- called "standard" market. That is the division that provided credit cards at high interest rates to clients with limited or

damaged credit histories. For the most part, the company has already moved to

cut off future growth in its standard accounts division.

 

Providian also said yesterday that it plans to sell its international

credit card portfolio with $585 million in assets.

 

The company's standard card portfolio began to give the company problems

earlier this year, as those customers, usually the first to feel the effects of an economic downturn, began to default at extremely high rates.

The company recently disclosed that overall loss rates climbed above 12

percent of outstanding balances in October.

 

Taken together, the OCC's regulatory restrictions are not so severe when

compared with actions it has taken against other banks, possibly because Providian still met regulatory capital requirements at the end of the third

quarter. But the agreement shows that regulators are concerned the company could suffer even higher loss rates and could face significant problems.

Regulators appear to be seeking a plan that will increase the company's capitalization even further.

 

Providian announced plans earlier this month to sell $3 billion worth of

accounts receivable, mostly from its troubled subprime card line. But no sale

has been announced yet, and analysts are skeptical whether anyone will want

the company. As such, it might have to be sold at a steep discount, which could further undermine the bank's capitalization.

 

Joseph Saunders, a credit card industry veteran, was hired Monday to

replace outgoing chief executive Shailesh Mehta, who built the company into

the fifth-largest issuer of Visa and MasterCard with 18 million customers. But

Mehta's aggressive growth strategy ultimately led to the company's problems.

Providian shares have lost 94 percent of their value so far this year.

 

The announcement yesterday of the regulatory agreement did not encourage

investors. The company's shares lost 44 cents, or 12.36 percent, to close at

$3.12 yesterday, erasing the gains made from the announcement of Saunders'

hiring on Monday.

 

 

Online Shopping Looks Merry and Bright

 

By  Michael Pastore  internetnews.com

 

 

As the shaky U.S. economy heads into the all-important holiday shopping season, Jupiter Media Metrix is the latest Web measurement firm to find encouraging news at the online mall.

According to Jupiter's assessment of e-commerce Web sites during Thanksgiving week, the number of different people visiting shopping sites from home or work increased 43 percent compared to the same week last year. The Jupiter Media Metrix Online Shopping Index, which tracks home and work visitors to nearly 500 Web sites in 18 subcategories, climbed to 50.2 million unique visitors the week of Thanksgiving, up from 35.2 million during the same week in 2000.

"Usage of the Internet continues to grow significantly on a year-over-year basis, but the strong year-over-year growth in online shopping during Thanksgiving week demonstrates that e-commerce activity is alive and well in the midst of an otherwise difficult economic environment," said Charles Buchwalter, vice president of media research for Jupiter Media Metrix.

Compared to the start of the holiday shopping season in 2000, traffic to retail sites on the day after Thanksgiving was up 68 percent to 16.1 million unique visitors, while visitors on Saturday were up 59 percent to 15.3 million and visitors on Sunday were up 55 percent to 16.1 million. The peak shopping days the week of Thanksgiving were Monday (21.2 million), Tuesday (20.2 million) and Wednesday (18.9 million). Data from comScore Networks found that the Monday after Thanksgiving was the best day of 2001 in terms of e- commerce sales.

Other findings from the Jupiter research include:

The top three sites of the 2001 Online Shopping Index are eBay, with 4.0 million average daily unique visitors (up 57 percent from 2000); Amazon.com, with 2.3 million unique visitors (up 49 percent); and MyPoints.com, with 1.8 million visitors (up 31 percent).

 

The top three sites ranked according to their percent gain in traffic compared to 2000 are Ticketmaster (up 424 percent to 713,000 average daily unique visitors); eBates.com (up 400 percent to 120,000 daily unique visitors); and Drugstore.com, up 319 percent to 373,000 average daily unique visitors.

 

The top three product categories ranked according to the number of average daily unique visitors are: auctions (4.3 million); books (3.1 million); and computers (3.1 million).

Brick-and-mortar retailers are also off to a good start this season. Jupiter found that Walmart.com, Target.com and Barnesandnoble.com all grew by at least 40 percent in average daily unique visitors compared to last year.

 

Capital Stream/Equidity/Live Capital

   by Kit Menkin

There has been some controversy about describing the internet leasing community  as “struggling.”

We quoted a year old e-mail from John Long, president of Equidity, formerly Equal Footing, who filed bankruptcy this month.

Equalfooting.com, an online marketplace for small businesses, experienced the joy and pain that swept the online business-to-business market. The company was founded in June 1999 and launched its offerings in March 2000 with a party at the Columbus Club in Union Station that featured former Senate Majority Leader Bob Dole and former Federal Communications Commission Chairman Reed Hundt.

At its peak, the company landed around $70 million in venture capital and employed 215 workers.

But a year ago EqualFooting.com decided to switch from its original focus on small and mid-size businesses to offering some of its financing services to large corporations as demand for its online exchanges did not materialize as expected. The company also laid off 35 workers.

Last February, EqualFooting.com launched Equidity, a financial tech company. A month later the group cut 120 more of its staff and took on the Equidity name.

It filled for bankruptcy in November.

 

January 19, 2001,  John Kruse wrote to Leasing News:

 

"Wanted to let you know that CapitalStream will be announcing in February that we have successfully raised our third round of venture financing. In addition, we have reduced our head count somewhat, but are adding new positions in customer services and sales. Were very excited about the great attraction CapitalStream is getting in the market. Please see the latest news release about our most recent customer."

Next we learned one of the early employees at System 1, Randy Anderson, had gone to Wildwood Financial to become a lease broker. Many were upset he would disclose confidential information  ( not his style ).  Latest we have heard Randy commutes from Modesto to San Francisco and works for Trinity Capital.  Being a leasing broker in this marketplace, evidently did not work out.  Then Hal Hayden, who we featured in Whateverhappened to.... http://leasingnews.org/whateverhappenedto/Hal%20Hayden.htm

There were other changes at Capital Stream.  Leasing News used old descriptions of the company on press releases, as we were not aware of the changes until brought to our attention. The company was changing direction again.  More people let go.  More administrative changes.  More new faces.  October 1, this press release:

 

 

On our current list, Wired Capital reports 15 employees ( they are number six in employee size on our list ).

From their latest press release:

LiveCapital is a leading provider of credit automation products to Fortune 1000 companies. The company's flagship product, DecisionExpress, automates the credit approval process to speed sales and reduce operational costs.