• Report: #361233

Complaint Review: Central Refrigerated Service INC, Central Leasing INC

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  • Submitted: Saturday, August 09, 2008
  • Last Posting: Monday, October 31, 2011
  • Reported By:Henderson Colorado
Central Refrigerated Service INC, Central Leasing INC
5175 W 2100 South West Valley Utah 84120 U.S.A.

Central Refrigerated Service INC, Central Leasing INC Lease purchase program RIPOFF-stay away-fake lease agreement West Valley Utah

*UPDATE EX-employee responds: x driver


1Author 2Consumer 4Employee/Owner

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I worked with Cenntral Refrigerated Service from 2006 to 2008. I began with them as a lease purchase driver, never a company driver. CRS's website states:"To cover the tractor costs, the breakeven is approximately 1300 miles per week." A COMPLETE LIE. I drove over 2800 miles one week and saw $47.53 as my weekly take home pay. Big money.

Lie # 2- from their website: "Your fixed cost will never go above $860.00 per week"...another complete lie. Their new Peterbilts are over 923.00 a week.

Lie # 3 -from their website: "No more worries about being broke down, not running miles, not making money."- While the breakdown part is true, the second two statements are complete lies. On several occasions I asked for longer loads and was loaded 375 miles and 423 miles. I went "in the hole" which means, I went negative, that week.

Lie # 4- from their website: "Our average owner operator makes 20-50% more than the average company driver!" - with paychecks like $47.53 per week, where can you go wrong? Line right up, lease a truck here at Central and you too can join the ranks of the soon broke and dis-gruntled!

Out of 54 weeks of that lease, I did not earn a paycheck 27 times. I was never sick or unable to take a load, EVER!

The fed highway use tax (2290) charged by the IRS is: $166.00 per truck according to the 2008 2290 booklet I obtained from the IRS themselves. CRS charges $10.58 per week for 52 weeks. 10.58x52=$550.16

550.16-166.00=$384.16 in over charges PER TRUCK!
Central has about 850 "owner operators" who lease trucks.
That's $326,536 PER YEAR that CRS overcharges its lease purchase drivers without over moving a stick of freight. If Central can profit close to $330,000 dollars a year by overcharging their drivers on ONE tax, imagine the amount of money they make on all the things they commonly "forget" to reimburse you on like washouts, lumpers, etc. I know because I was one of their victims myself before I started looking closely at the numbers.

1 month to go and the truck will be paid off and I can then complete the baloon payment and the truck will be mine???? WRONG!!! Close to the end of the lease period I was no longer loaded and I was forced into default right at the end of my lease. They took the truck back and billed me over 6800.00 dollars saying I quit. I never quit, they stopped loading my truck so they can take the truck and make it a company truck that I paid for.

Central Refrigerated Service has a great scam going here: You pay for the truck and they get to keep most ALL the profits.

The whole time you work there, they call you an "Owner Operator" - reality is this: You own NOTHING but a ruined credit rating for a truck that will be re-possessed in the end. Their "Owner Operator" department won't call you back.

In winter they will run you through Wyoming and places like Indiana where the snow can get you stuck. Try making a 2250.00 a month truck payment when you run 1300 miles a week in winter. If you think you will only run in sunny Florida or Southern California during the winter months....think again.
REMEMBER THIS ALWAYS: CENTRAL REFRIGERATED CARES ABOUT NO ONE BUT THEMSELVES.

Check other posts here. Lies and deception are the normal operating tactics used by this company. It's true, the company doesn't care about you in the least. All they care about is you paying for their truck and making THEM money--BIG HINT HERE: Why do you think it's a no money down, no credit check lease? 2 reasons: 1. central is the one leasing the trucks from paccar, not you...so it doesn't really matter what your personal credit looks like.
2. There is no risk on their part. If you default they simply find another idiot to "take over your lease" and carry on from where you left off.

I see brand new Peterbilts going down the highway everyday with fresh idiots who think they have the best deal in trucking. What they have is pure heartache and broken dreams in the not too distant future.

My best advice to ANYONE in trucking: Stay very far away from the crooks at Central Refrigerated Service Inc in West Vallet UT.

You will own nothing but broken dreams. Trust me, I lived it, you don't have to.

Signed- Broken Hearted.

Ripped off lease purchase-stay away
Henderson, Colorado
U.S.A.

This report was posted on Ripoff Report on 8/9/2008 11:14:51 PM and is a permanent record located here: http://www.ripoffreport.com/trucking-companies/central-refrigerated/central-refrigerated-service-i-8w6bb.htm.

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REBUTTALS & REPLIES:
1Author 2Consumer 4Employee/Owner
Updates & Rebuttals

#1 Consumer Comment

2290 Taxes

AUTHOR: Mike - Perrysburg (U.S.A.)

I understand your frustration but as an owner operator of more than 13 yrs of my 25 plus years of driving you either were looking at the wrong line on the 2290 info or you are looking at a partial payment based on months the truck was in service. A full year of the 2290 tax or Highway Use Tax is $550. Also as a driver if you wan t the big payments you run the snow, rain, sleet, sunshine, night and day. I have done it for years. I was with a company and used their lease purchase program and got ripped off big time and that was my fault for not talking with actual drivers in the program and doing some research. Companies turn to lease purchases especially during down times in the economy for exactlly the reasons you complained about. ITS FOR YOU TO PAY FOR THEIR BUSINESS NOT TO MAKE YOU HAPPY.
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#2 Consumer Suggestion

This my help you get what is yours

AUTHOR: John - Randolph (U.S.A.)

Like the old saying goes, if it sounds too good to be true, it usually is!
FYI...There are NO GOOD LEASE DEALS. Period.

Never sign a lease agreement that does not spell out performance of BOTH parties.
They would have to stipulate a minimum rate per mile and minimum number of miles for you to intelligently evaluate the lease in the first place. What numbers did you use to evaluate the deal? The numbers the SALESMAN threw at you?

HOWEVER....I do have a 'way out' for you.

Actually there are a few ways out. Hang in there and do these things, but DO NOT quit YET.

**First, go to the IRS website and download form 'SS-8' titled 'Determination of Worker Status'. Fill it out completely and truthfully, make about 5 copies of it, and then send the first one to the IRS address given in the directions for that form.

The reason you want to do this is to challenge the 'independent contractor' status you allegedly have, and legally be declared an EMPLOYEE. [Just because someone calls you an independent contractor, does not make you one, legally].

With this done, you can legally break the lease under the material misrepresentation clause in contract law and the provisions of the FMCSA regarding 'leasing', and also get your SS taxes 100% paid, as well as your workmans comp prem and unemployment comp prem, as well as wages that equal at least minimum wage for all hours worked.

Contact OOIDA as they have challenged CR England leases in court in a class action and won.

Most company Leases are ILLEGAL, and the control they exert over you alone makes you an employee. This can be verified with the USDOL.

Now, file a complaint with FMCSA regarding your lease. Send them a copy of it, along with your USDOL complaint, and your IRS form SS-8.

Give it about 30-45 days until you get answers from all agencies, and then send a certified mail letter to CR England's legal dept informing them that due to the fact that the lease is illegal and you are actually an employee, you want the lease terminated, and you demand to be paid for all time as an EMPLOYEE.

Now, send all of this to the State Dept of Labor where you live, attn wage and hour division.

Have fun with these morons, then get paid!
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#3 Employee

Stop the sniveling

AUTHOR: Bill - Ontario (U.S.A.)

So you went to work for them as a lease operator? No one held a gun to your head and Sign here! I have worked for them for almost 20 years now and have stayed a company driver the whole time. If you had any experience at all you should have known that if it sounded to good to be true then it probably is.
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#4 Ex-Employee

You didnt know how to work the system!

AUTHOR: MrB - richmond (USA)

My friend obviously you didnt have a clue on how to run as a lease operator with central refrigerated....First of all, you are never considered a Owner Opertor, you are a Lease Driver.

Secondly, you should have researched the program with other drivers, especially lease drivers who have been in their trucks for a year or about to pay their trucks off.  If you did that properly you would have made some very good money my friend.

I leased a T-2000 back in 2006 for 12 months and most of the time I was actually clearing $1700 - $2200 a week after expenses.  I drove 3500-4200 miles a week. I never said I drove legally, but I got my miles because I did my homework.

That includes changing driver manager till you get one and of course being based out of Salt Lake City. Next, you have to basically get you load to its destination as early as possible so you let your driver manager you mean business and you're a runner.

Now you will get screwed with a load here and there because thats part of trucking. But as a lease driver, you can turn down loads if you dont want it.  The secret is to call the planner for that state or area and bypass your driver manager if you arent getting the miles.

I call the planner all the time until I found one great dispatcher in Salt Lake City. Other driver managers didnt like it that I went over them to get my load but the Planner was always willing to give me a good load because they found out I was a runner.  When I say runner, lets say you get a 1000 mile run and you basically do that within 24 hours.

Now that illegal, but hey I said you gotta do things to get noticed by the people who gives you freight.  All you had to do was say basically, " Im here in Illinois, you got a load going south to florida or west to california, etc etc... I lived in Atlanta and I ran so hard that I got to go home every week through Atlanta when I took a load.

My driver manager worked hard for my loads because he knew I would get the job done. I would drive more miles per week than some teams. One week I drove 5300 miles while using 3 logs. I almost got busted in California but luckily while entering the inspection station, two owner operators passed me and I didnt get pulled in. 

On many occassions I would start driving before the sun came up and didnt stop until after the sun went down, not including fueling. I showered at end of day and kept food in my truck...It didnt feel like a job, more like adventure to me.

The issue I had with Central Refrigerated that ticked my nerve and caused me to terminate my lease was when my dispatcher took a leave of absence and I was given a prick.  This guy tried to run me in the northwestern part of the country during snow and ice and that was a rule of mine that was noted for all loads. I did not run ice, but would drive in snow only in midwest as far as Minnesota.

I had to wait longer on my loads and constantly argued with him because he was trying to do things differently.  Also, my check was incorrect often and I had to call payroll to get it adjusted on a weekly basis....After a year of this, enough was a enough. I decided I wanted to go to another company since I had my year of experience and basically got caught up in the so called "Cycle", where all the companies I applied to basically would lie to me about there running area, loads, etc..

After tryin to work with 3 other companies, I gave up on the trucking industry and went back into corporate america even though I hated being in a cubicle all day...Now Im looking to go back into trucking but Central Refrigerated wont hire me back because I didnt transfer my lease to another driver.....I was so pissed off by the b.s. from the new dispatcher and having to correct my check everyweek that I basically dropped the truck on the yard in Conley, Ga and walked away.

Now Central Refrigerated isnt the best truck company, I will say its a decent truck company to start out on.  I compared their lease to other companies and actually it seems to be near the top but the only catch is you have to run 3500+ miles per week and drive like a turtle....60 mph....Driving just 5 mph more can cost you $200 a week in fuel cost.

On a final note, the last reason you were suffering as a lease driver was because you didnt know how to fuel.  What I mean is from the day your pay week starts till it ends, you need to know how much fuel you need "NOT" to put in so your check will be larger.  Some guys could get $1500+ check but they make the mistake of putting more fuel in than they need pending their work miles that week and the pay ending period.......So hopefully some of this info will help you in the future or any other driver who thinks about leasing with Central Refrigerated.

 


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#5 Ex-Employee

about central contract

AUTHOR: 30528 - CLEVELAND (United States of America)

the contract that central refrigerated has you sign is what lawyers call a "adhesive contract". these types of contracts have to be fought in an arbitration hearing and the case has to be filed in Utah. there are several lawsuits against central and swift but the fastest way to get into a suit is to go through an arbitration attorney i know i am...

signed    REDNECK
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#6 Ex-Employee

x driver

AUTHOR: william wisner - monroe (United States of America)

  this is the kind of driver that makes it so hard on the rest of us.  runnung illegal to make his

 dispatcher happy and taking a chance on hurting himself or others to make a paycheck.
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