If you believe everything in the complaint, you could come to the conclusion that the Arrow people did plan on committing fraud against TAB. All I am saying is that we have only heard one side of the argument. That is why we go to trial.....to hear both sides of an argument. TAB extended them more credit even though they already had at least one judgment against them. Apparently, TAB didn't take the time to run their own credit check or this would have been red flagged that the company may have been in financial difficulty. I think that TAB should get most of their money back if they are successful in their complaint. It sounds like they have things pretty well laid out. If the equipment is leased or financed by other sources, then there may not be much to repossess. There is real estate. That could be sufficient to cover their losses. If there is equipment then they could sell it off or put the entire company up for sale. It would be worth more as a going entity. It diminished the value considerable when the doors were closed. Since the executives provided a personal guarantee for at least part of the money, they could go in and start taking their toys and selling them off. In any case, this is likely to be messy.

Before it is over I would expect the government to file a claim against any assets for those back taxes. You also have a claim for back wages, retirement contributions and insurance premiums that were not paid. Those could be addressed separately or as a class action suite with everything grouped into the complaint.

 

Not much different than people did to inflate home prices. TAB is a big boy and if they got duped they should have used due diligence.

 

There is an article in Landline about an Arrow lease operator who paid off his truck and can't get a clear title. According to the article he paid $130,000 and still can't get a clear title. Apparently, Arrow used his truck along with others for collateral to get a loan from Daimler Chrysler. Daimler Chrysler wants him to fill out a credit application and get a loan or turn in the truck. The article also mentioned that Arrow has also now filed chapter 7 bankruptcy. It also mentioned that he was contacted by the FBI and they are attempting to find out who has jurisdiction in the matter. The article mentions that there are between 1,000-5,000 creditors. It will be interesting to see how this plays out. I like to give people the benefit of a doubt, but it seems that it was misplaced in this situation. This is another reason to NOT do a lease purchase with a carrier.

 

I couldn't agree more!

 

Does anyone believe Arrow was the only company doing this? There are a lot of lenders taking a closer look at the trucking companys they are funding. But I would bet that if Arrow opened tomorrow with lease purchase W900s they would have a line at the door.

Does anyone remember about a year or so ago Arrow announced they were going all O/O with lease purchase, good thing it didn't work.

 

Here is the OOIDA link that "G" refered too!

http://www.landlinemag.com/todays_ne.../011110-01.htm


That is one of those "Little" things that may well drive a final nail in the coffin of these LEACHES that run bogus "Lease Purchase" programs!

 

I think there is a difference. the people at arrow appear dishonest to say the least. I always say if I agree to something & it is bad for me, it's on me!

 

That story is sickening!

 

If a sufficient number of lease purchase people have been fleeced it could generate enough interest to institute new legislation about how these should be handled. I have no doubt that no matter how much legislation is passed that there will still be those who will jump on the lease bandwagon. Some people want to be an owner operator so badly that they will do or sign most anything to obtain their goal, except save their money and get their credit up to standards. That is the real reason these programs are so successful for carriers. That is not to put this guy or others down for losing their shirts with Arrow. I do feel sorry for them. People like this guy paid their money and got the shaft. issedoff:

 

You aren't kidding, the man did nothing wrong on his end he was making the LP work and in the end he is still got it up the rear. What do you do there besides not do an LP? Your making the payments to the company but they aren't paying a dime to the people they leased it from..........That would be like me signing for a car for a buddy then not paying a dime on it while I pocket all his money that he pays me. Then he wonders why the repo men showed up and took the car. What a sad story, hope it works out for him, has he thought of trying to get on with someone else instead of starving himself right now?