Claim: PSFS Violated California Finance Lenders Law

Jul. 07, 2010 1:22 PM ET
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Internet, Long/Short Equity, Portfolio Strategy, Banks

Contributor Since 2009

Christopher "Kit" Menkin is of editor LeasingNews.org (http://www.leasingnews.org/), an internet trade publication for the finance/leasing industry. He has 46 years experience in the finance/leasing industry as well as being a founder of a commercial regional bank and serving on several company board of directors. He was a syndicated business columnist in news from Silicon Valley, California, for 12 commercial newspapers in the 1970's and early 1980's. Prior to getting into the financial business, he was a West Coast News Producer for ABC-TV News, Managing Editor KGO-TV News, San Francisco, California, and news editor at KFRC News, San Francisco, California. His three times a week news edition posted at www.leasingnews.org is read by over 175,000 in the trade and by related entities each month.

Ken Catanzarite, Esq. of the Catanzarite Law Corporation, Anaheim, California told Leasing News his firm has filed has filed an amended class action lawsuit seeking over $30 million on behalf of a Nationwide Class and a California citizens subclass related to what the plaintiffs allege to be the Brican Exhibeo Lease Fraud in the Brican America, Miami Beach, Florida matter. He states, "All of the leases contain the classic $1 end of lease bargain purchase clauses related to equipment fairly valued at no more than $3,500 and as such these are capital leases subject to both the California Finance Lenders Law and are also violate several states usury laws including California."

Tom McCurnin of Tom McCurnin Barton, Klugman & Oetting, Los Angeles, won a major victor regarding Commercial Money Center as it also was not licensed in the State of California. Catanzarite’s complaint asks for a determination that the Brican leases, both originated with and assigned to Professional Solutions, West Des Monies, Iowa, subsidiary PSFS, "are void or voidable, that the leases and related advertising and marketing agreements were misrepresented to plaintiffs and include usurious interest charges which entitles all plaintiffs to compensatory and punitive damages against all defendants, including PSFS."
 

"PSFS is a division of NCMIC FINANCE CORPORATION, an Iowa corporation, doing business as Professional Solutions Financial Services. PSFS is a member of NCMIC Group, Inc., a family of companies that offer a diversified portfolio of products to meet the insurance and financing needs of professionals including chiropractors, naturopaths, doctors, dentists and lawyers. The companies were started in 1946 with, what is described as, its “flagship operation”, NCMIC Insurance Company, licensed in all 50 states."

"On behalf of the California subclass the lawsuit asks a determination that the leases and related assignments are all void for failure to comply with the California Finance Lenders Law which plaintiffs allege required both PSFS and Brican to be licensed before entering into the leases and marketing agreements with California citizens, that such unlicensed activity and the failure to fully disclose the complete facts of the transaction results in the leases being void; in turn invalidates the floating forum selection clause; the pay come “hell or high water” clause; the California jury waiver; and related waiver clauses; and entitles each California citizen to a recovery of all money paid to PSFS, punitive damages and treble damages up to $10,000 per class member and attorneys’ fees and costs."

Brican America Lease (note #8: lessee pays personal property tax as owner as well as the many $1.00 purchase option clause:)

Lease/Loan State License Requirementshttp://leasingnews.org/archives/Jun2010/6_25.htm#statuses
 

Brican America/Brican Financial Lawsuits
http://www.leasingnews.org/Conscious-Top%20Stories/brican_america.htm



Disclosure: no position

Recommended For You

Comments

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.