Bank of Cardiff AKA Commercial Financing and Leasing Bank of Cardiff Inc. I thought, with today's banking laws, there would be little room for "Banks" to operate without disclosing interest rate charges and fees were long over. In my opinion, the way the Bank of Cardiff operates is sneaky and underhanded. I used them to finance an equipment purchase. Del Mar California

Please consider the following response to the complaint lodged by Steven Nenzel of Rock-It Surfaces, Inc.

On or about 10/02/13, Bank of Cardiff entered into an Equipment Finance Agreement with Rock-It Surfaces, Inc, for the purpose of financing the acquisition of commercial equipment to be used in the borrower’s business.  This is not a consumer transaction, and the agreement specifically prohibits the use of the financed equipment for family, personal or household purposes. 

Mr. Nenzel selected the equipment and negotiated the purchase price of the equipment with the supplier.  He was in possession of all of the facts and numbers necessary to calculate the expense his company would incur in borrowing the funds, that is the principal amount financed, the term of repayment, and the monthly payment.  Mr. Nenzel admits that he did not do such calculations prior to signing the agreement and returning it to Bank of Cardiff, and then the financing being funded by Bank of Cardiff.  The agreement expressly provides that the borrower has read and understood all of the terms of the agreement prior to signing.

With respect to the interest charged, it was expressly explained to Mr. Nenzel, prior to his signing the agreement, that this was not an amortized loan product, but a straight installment contract, with no right of prepayment discount.  Using a simple interest calculation, Rock-It Surfaces will pay approximately 7.5% of the principal amount of the financing each year of repayment.  Mr. Nenzel’s calculation of 12.99% is using an amortization calculator. 

There is no requirement under California law that the annual percentage rate be disclosed in the agreement, as this is a commercial transaction subject to the California Finance Lenders Law, under which Bank of Cardiff is licensed.

The agreement was sent to Mr. Nenzel to review at his leisure.  At no time was any coercion or duress applied by Bank of Cardiff.  Mr. Nenzel was free to consult with any advisors of his choosing, read the documents in his own time, and run any calculations he deemed wise.  He freely admits that he did not read the agreement prior to signing and returning the agreement to Bank of Cardiff.

Mr. Nenzel was also free to seek financing from another entity or simply walk away from the proposed transaction.  Instead, he decided to sign the agreement without first reading and understanding it, and now complains about the terms of contract to which he agreed.

In light of Mr. Nenzel’s failure to take the reasonable precautions of an ordinary business person, the cost of the transaction when using simple interest is as represented, and the non-cancellable agreement has been funded, Bank of Cardiff is unable to adjust the cost of the equipment finance agreement as requested by Rock-It Surfaces, Inc.