Peer Oversight in the Equipment Leasing Profession
By: Irwin M. Wittlin, Patricia T. Reid and Jennifer D. Gould
At the National Equipment Finance Association (NEFA) Funding Symposium September 15, participants in a breakout session titled Policing Your Peers discussed the risk of significant penalties or class action lawsuits if lessors lose focus on the laws in all the states where they do business.
LEAN members Irwin M. Wittlin of Hemar Rousso and Heald, Patricia T. Reid of Marks & Weinberg, and Jennifer D. Gould of Stark & Stark noted that nearly half of U.S. states have enacted loan broker statutes since the early 1990s. They warned that definitions of “loan brokers” vary, and it’s a misconception that the statutes apply only to consumer transactions.
“Although banks and regulated financial institutions are typically exempt from the definition of loan broker, some of the statutes extend to commercial lenders and equipment or real property lessors,” according to the presenters’ PowerPoint presentation , now available for download from the LEAN website.