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If Leasing company goes out of business

asked 2013-05-26 15:11:47 -0500

kdharhamm gravatar image

I am considering a prepaid lease. What happens if the leasing company goes out of business? Who will be responsible for maintaining the system and stand behind the performance guarantee? Karen

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answered 2014-02-08 11:49:45 -0500

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updated 2014-02-08 11:49:45 -0500

Karen, it matters which leasing company so you should ask them directly. The leasing company we work with has a third party that backs them up. What I've seen happen is that one company will acquire the assets of another and will assume the responsibilities going forward. I can hear your next question "why would they want to take on that responsibility if I'm not going to make any more payments?" The short answer is that the majority of the leases they will acquire are monthly and not prepay so they will be receiving money monthly from those leases. I'd assume they have to take on the entire portfolio which includes both monthly and prepaid. They can't (or shouldn't) take some and not all. But it is best to ask you installer or lease company this question since that trumps any speculation. The very worst case scenario is that you would have to maintain the system yourself and that would put you in the same boat as anyone that had originally purchased their system. Unlikely this will happen but it isn't that bad after all.

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Asked: 2013-05-26 15:11:47 -0500

Seen: 311 times

Last updated: Feb 08 '14