The FMCSA is taking a close look at vehicle leasing
As of May 2024, the FMCSA’s Truck Leasing Task Force Advisory Committee (TLTF) has met four times with the last as an in person public meeting at Mid America Trucking Show on March 21st. The meetings have been driver-centric, focusing primarily on bad actors that create predatory leasing situations for drivers that often over-promise and under-deliver. These agreements may leave drivers without a vehicle but still holding debt.
Congress passed and President Biden signed the Infrastructure Investment and Jobs Act (IIJA) in November of 2021. One of the required items in the law was that the Department of Transportation and Labor Secretaries create the TLTF. In February of 2022, Transportation Secretary Pete Buttigieg signed the Task Force’s charter document.
The Task Force charter
The task force’s charter instructs the task force to examine and consider:
- Truck leasing arrangements available to commercial motor vehicle (CMV) drivers, including lease-purchase agreements;
- Specific terms of leasing agreements;
- The existence of inequitable leasing agreements and terms in the motor carrier industry and whether inequitable terms and agreements affect:
- The frequency of maintenance performed on the leased vehicles, and
- Whether the leased vehicle is kept in a general state of good repair;
- Agreements available to drayage drivers at ports relating to the Clean Truck Program or any similar program to decrease emissions from port operations;
- Impact of truck leasing agreements on the net compensation of CMV drivers, including port drayage drivers;
- Whether truck leasing agreements properly incentivize:
- The safe operation of CMV,
- Driver compliance with the hours-of-service regulations, and
- Laws governing speed and safety generally;
- Any available resources to assist commercial motor vehicle drivers in assessing the financial impacts of leasing agreements; and
- Any opportunity that equitable leasing agreements provide for drivers to start or expand trucking companies and the history of motor carriers starting from single owner operators.
While having no rulemaking authority, the task force will complete a report to the DOT Secretary and Congress regarding their findings and recommended best practices and changes to laws or regulations.
Key to remember
Regardless of the task force recommendations, drivers looking to lease their vehicle to a carrier or thinking about entering a lease-to-purchase agreement need to understand that there is no such thing as a “standard lease agreement.” Leases are contracts. Both parties need to know what they are responsible for and have all negotiated items included in the lease. The individual that creates the agreement will know what is in– and possibly more importantly – what is not in the lease. If unsure of what is being signed, get professional help.