For Immediate Release

August 2, 2002

For Information Contact:

Genene W. Morris 973-504-6327

NEWARK - Attorney General David Samson and New Jersey Division of Consumer Affairs Director Reni Erdos today announced that PNC Vehicle Leasing, LLC, has entered into an agreement with New Jersey to resolve an investigation into violations of the Consumer Fraud Act and Consumer Protection Leasing Act related to its vehicle leasing practices in New Jersey. As part of the agreement, PNC Vehicle Leasing has agreed to comply with the State's leasing laws and to continue certain business practices that are designed to protect the rights of lessees during lease-end transactions.

Also under the terms of the agreement, the company will also pay New Jersey $500,000 - the largest amount paid by a leasing company in state history to settle alleged violations in connection with lease-end transactions. The $500,000 will be used to cover investigative costs, attorneys fees and other administrative costs as well as future consumer initiatives.

The settlement brings to an end an investigation by Consumer Affairs into PNC Vehicle Leasing's off-lease practices including its charges for excess wear and damage. Consumer Affairs uncovered alleged violations after it subpoenaed company documents. Immediately upon being made aware of the investigation, PNC Vehicle Leasing took steps to resolve the problems, including suspending charges for excess wear and damage, and began cooperating with the State to achieve a permanent solution.

PNC Vehicle Leasing has not admitted any wrongdoing nor were there any findings of liability or wrongdoing by the state.

"We are pleased we were able to negotiate an amicable resolution with PNC Vehicle Leasing," Attorney General Samson said. "This agreement establishes some fundamental steps that the company will use to ensure lessee's rights are not compromised."

"One of the important aspects of the agreement makes certain that PNC Vehicle Leasing's lease-end transactions will not be prolonged by unnecessary delays," Erdos said. "It requires the company in accordance with New Jersey's Consumer Protection Leasing Act, upon the return of a leased vehicle, to refund consumers their security deposits or mail bills for excessive wear and damage within a specified time period. For example, the agreement ensures that PNC Vehicle Leasing will not bill its customers for "excessive wear and damage" unless it provides notice within 10 business days of a vehicle's return."

Also under terms of the agreement, PNC Vehicle Leasing will:

• Send each lessee a notice identifying its inspection company and advising that a pre-inspection will be conducted free of charge to determine excessive wear and damage amounts. PNC Vehicle Leasing will provide at the time of inspection a preliminary invoice for amounts claimed for excess wear and damage. The invoice will also contain the required disclosure advising the lessee of his or her right to an independent appraisal.
  
  
• Participate in a complaint resolution process for all future motor vehicle leasing complaints received by the Division of Consumer Affairs. Under this process, within 30 days of receiving a consumer complaint from Consumer Affairs, PNC Vehicle Leasing will send a written response to the complaining consumer. If PNC Vehicle Leasing's response disputes the complaint or the relief sought by the consumer, the response must include a description of the facts and, if appropriate, copies of documents supporting the company's position. If PNC Vehicle Leasing's response does not dispute the consumer's complaint, the response must include all documents necessary to satisfy the consumer's complaint, including payment or credit. If Consumer Affairs has not received notice from PNC that a forwarded complaint has been settled within 45 days of the complaint's transmittal, the complaint will be forwarded to Consumer Affairs' Alternative Dispute Resolution Unit for binding arbitration.
  
  
• Continue to include in its customer leases a statement that the lessee may obtain at the end of the lease term, at the lessee's expense, a final and binding professional appraisal to determine "excessive wear and damage" fees.

PNC Vehicle Leasing LLC, a wholly owned subsidiary of PNC Bank, N.A. PNC Bank, N.A., is a nationally chartered bank that operates PNC Bank branches in New Jersey.

Deputy Attorney General David M. Puteska of the Division of Law handled this matter for the State.