Five Point Capital Pokes Fun At Deceived Customers San Diego, California
I used to work at Five Point Capital as a Funding Coordinator. I left the company once I realized how shady these people were, and haven't looked back. However, I recently stumbled across a photo taken at Five Point Capital's Halloween party last month and wanted to share this with anyone who has been scammed by this company.
This is a pumpkin that their payoff department created for a pumpkin carving contest that Five Point Capital has every year. At first glance, it seems relatively harmless. However, you will notice a few items placed around the pumpkin that speak volumes about how they perceive their customers.
First off, the pumkin is carved to look like a cheeseburger. The flag sticking out of the pumpkin labels it a "$1 Buy-Out Burger". Off to the side, there is a bottle labeled "FMV Secret Sauce"...the FMV stands for "Fair Market Value", which is how they secretly sell most of their $1 Buy-Out leases. In other words, they tell the customer that at the end of the lease they own the equipment for $1.00, when the lease is actually set up as a Fair Market Value buy-out.
In front of the pumpkin sits a bottle of Tums that reads "Renewal Relief". For those of you who have had your lease automatically renewed, you'll know what this is referring to. If not, let me explain: At the end of a "FMV" lease, you are obligated to notify Five Point Capital as to your purchase intentions (i.e. are you going to return the equipment or purchase it for it's "Fair Market Value"). You need to send a letter via certified mail at least 120 days before the lease ends. If you fail to send this letter, they will AUTOMATICALLY RENEW your lease for an additional 12 months.
The joke here is that most of these customers do not even realize that there is a buy-out at the end of the lease! Why would someone submit a letter indicating their purchase intensions when they are under the impression that they signed a $1 Buy-Out lease? The Payoff, or "Portfolio Management" Department was created for the very purpose of fielding these angry calls. All day long they explain to angry customers that they actually signed a FMV lease, and their lease has been automatically renewed for 12 months b/c they failed to send the letter 120 days prior to the lease ending.
Now that little bottle reading "Renewal Relief" doesn't seem to funny huh? These people are laughing in your faces...
2 Updates & Rebuttals
SR
Houston,Texas,
Virgin Islands (US)
consumer/small business fraud
#3REBUTTAL Owner of company
Sat, May 21, 2011
I have 3 leases with Five Point Capital. I have 2-3 payments left on each one and am now trying to negotiate the FMV for the final payoff. After reading the above report, I couldn't believe that this type of business practice is allowed to continue, I at least know that I am not the only one who was duped by Five Point Capital.
As a business owner myself, I can not even imagine taking advantage of my customers, these are the people who refer and drive even more business my way. Unfortunately, I was pushed out of my 16 year business by a new partner and currently am in litigation, but one thing I do have is the respect of my large customer base. So, when I deal with companies like Five Point Capital who purposely take advantage and have no regrets about ripping me off, I am just shocked. Why would they need to do business this way, certainly they would have more customers from referrals otherwise.
Further, I have been in constant communication with their portfolio manager, trying to make sure payments are being made so my credit is not ruined. I, too, had one of the 3 leases AUTO RENEWED due to their clearly deceptive practice of asking for a written notice 120 days prior, I don't even know how they can legally AUTO RENEW a financial obligation, this itself must be violating some statute. However, I still paid this outrageous amount of close to $3500 extra and am now trying to negotiate the pay off with 3 payments left. These people won't budge, they are greedy, deceptive and I don't know how they sleep at night. Small business drives our economy and then companies like Five Point Capital prey on small business's by ripping them off with provisions which make absolutely no sense which are put in place specifically to see if they can get away with it and squeeze out more money from their customer, pretty sad.
Finally, I have had other leases and all of them were $1 buy outs and the companies were great to deal with, fair and not deceptive. I would love to be notified if there are others this has happened to and if all of us can do something together, this company needs to be sued. I find it interesting how the paragraph dealing with the 120 day notice is not in all caps as other parts of their contract are. Sorry for the long rebuttal but I'm right in the middle of dealing with their "portfolio manager."
Burnt
Arcadia,California,
USA
Any X Employees Help Me with your knowledge
#3Consumer Comment
Thu, January 20, 2011
I am one of those guys that got screwed with the $1 buy Out and the 120 days failure to notice, I just found this out yesterday, Henry my sales rep promised me a $1 buy out and at the end of my 4 year lease, he is gone now .
In any case I would really like to speak to the author of this message, I have consulted an attorney and having any inside information would help me and possibly others to undo what has been so wrongly done to so many people. Their lack of full disclosure and bait and switch is disgusting.
PLEASE help me, any current or previous employees wishing to clear their conscience or just want to stick it to their employer please contact me at six two six nine 45 eight zero 22 I need all the help I can get!