State regulators say Jacksonville loan broker violated the law

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Colleen Michele Jones

Reporter- Jacksonville Business Journal

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A Jacksonville-based equipment leasing company has been fined $20,000 by state regulators for allegedly charging up-front fees of businesses seeking loans.

In a complaint issued by the state Office of Financial Regulation on Oct. 2, the agency found following an investigation that eLease was in violation of a statue prohibiting brokers from assessing charges for loans in advance of approvals.

The violation also personally names Thomas Lance Clyce, president of eLease, with offices at 10752 Deerwood Park Blvd.

The company, which liasions between customers and vendors as a loan broker and insurance agent in equipment lease transactions, was found to have charged advance fees of customers in the form of "deposits" on at least four occasions between May 2012 and July 2013, with a $5,000 per violation.

In a phone interview with the Business Journal, Clyce said, however, that in at least three of the four cases the "refundable deposits" were charged for extraneous costs associated with the application, such as an appraisal or credit check, and were returned to clients. The fourth application is still pending, he said.

"We're being held to an ordinance that's just not applicable in this case," Clyce said.

According to the OFR, eLease waived its right to an administrative hearing by failing to file a petition within 21 days of notice and is therefore responsible for the $20,0000 penalty.

Clyce said he was out of the office the week the notice was filed and by the time he sought counsel and returned the petition it was two days after the deadline.

"Our attorney is exploring any other options available to us," Clyce added.

According to eLease's website, the 12-year-old company provides leasing options from $5,000 up to more than $10 million, as well as equipment insurance.

Colleen covers finance, technology, sports business and health care