QUESTION
I have a lease for my forklift equipment and having problems with the leasing company.
Asked on Sep 21st, 2011 on Business Law - Pennsylvania
More details to this question:
I have a lease for forklift equipment and have always made payments through direct debit from my bank. Last year I changed banks and provided the new bank info to the leasing co via email. They said they never received it and I was never notified. Now they are saying they had no legal obligation to notify me that the payments weren''t being made and are not threatening to repo the equipment because I didn''t have the lump sum payment they demanded.
Did they have a responsibility to make every effort to contact me regarding this or not?
1 ANSWER
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Read your lease. The duty to make the payments under the lease was yours. The leasing company provides you with the convenience of allowing the payments to be direct-debited from your account, but the fact that the leasing company had expired or inaccurate bank information does not absolve you of the duty to pay. A reasonable businessman in your position would have noticed that the payments were not being made. They have no duty to "make every effort" to contact you. To the contrary, you had every duty to make the payments.
Answered on Sep 26th, 2011 at 12:21 PM