Legal Question in Business Law in Colorado

Business ruined by a finance company

I am I owner of a trucking company. I have only one truck so I am a SMALL company. I have been financing my trucks and trailers through leasing company in colorado. I do not have the greatest credit in the world but I am very good at paying the bills for the business. I had a bankruptcy in 2006 so when I started leasing with this company my uncle co-signed. I got offered more money then my current truck was worth so I called the leasing company and they told me that there would be no problem for them to lease to me under my name only now since I had a good history with them. I took his word and then sold my current truck that weekend. now I can not get financing he told me to get a co-signer I did again even though he had told me I wouldn't need one this time. My uncle who was on the last truck they will sign but I gave them a co-signer (MOM) that had better credit then him and they said no again. they said because they had a bankruptcy over 20 years ago they could not use them, yet my uncle had a bankruptcy 17 years ago. Makes no sence. I am losing my business cause without a truck I can not work I would have kept the old one but had been told they would be able to finance the next one. what do I do?


Asked on 1/21/06, 12:10 pm

2 Answers from Attorneys
James Jenkins Jenkins Law Center PLC

Re: Business ruined by a finance company

The only legal question I see is whether you could hold the leasing company to an oral commitment to finance you, which could not be ultimately resolved until a court trial, which will not help you because of the amount of time needed.

Therefore this becomes a business planning question rather than a legal question. Your options:

1. Get another finance company.

2. Get another co-signer

3. Get a partner

4. Can't think of any other

From the facts of your case it is not clear why you sold the truck you had. I wish I could be of more help.

Best wishes,

James D. Jenkins

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Answered on 1/23/06, 4:54 am
Donald Scher Donald T. Scher & Associates, P.C.

Re: Business ruined by a finance company

I do not think that you have any recourse against the finance company with the facts and history that you describe. It was a mistake for you to sell your truck before the financing on the new vehicle was approved. At this point, I would suggest that you go to a different lender, there are plenty of others who would finance the purchase, they would probably require a higher rate of interest.

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Answered on 1/22/06, 3:43 pm


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