Jul 8, 2011

Returned computer equipment from leases – to sell or not to sell?

Weighing the risks of remarketing in today’s world
By Jim Noyes

No matter how strong your return provisions are in an equipment lease your leasing organization can be held liable for the improper disposal of electronics under both federal and increasingly state laws. Corporate fines have been in excess of $20 million for the improper disposal of electronics waste, and the laws are only going to get tighter and penalties more severe.

So what should you do as a leasing company that receives back IT equipment, copiers and other electronics at end-of-lease? Here are some common sense solutions:

  1. If the equipment still has value and can be sold to a new user, make sure that your remarketing partner performs a minimum of a triple pass wipe of all hard drives prior to reselling the equipment. Also be sure to require detailed audits showing that this has been done.
  2. For equipment that’s obsolete and in need of recycling, make sure your remarketer has all of the certifications necessary to make sure that every piece of equipment is handled properly from the time it hits their dock to the time the various components are shipped out. This can include but is not limited to R2/RIOS certification (the EPA-sponsored industry benchmark for proper electronics recycling and reuse), ISO 14001 certification for environmental management standards, and AAA certification in NAID (National Association of Information Destruction). These certifications will help show that the remarketer has all processes in-place to protect you as lessor and your client as lessee.

Nobody wants to be showcased on “60 Minutes” or to have their company name all over the news for the improper disposal of electronic equipment. Following these simple steps can help you and your firm avoid these potential pitfalls.

About The Author

Jim Noyes is the Business Development Manager for Lifespan Technology Asset Management, a division of Lifespan Technology Recycling. Jim works with leasing companies, banks and other businesses to efficiently and profitably manage their returned or excess IT equipment of all types. He can be reached by phone at 320-252-2730 or via e-mail at jim.noyes@lifespantechnology.com.

One Comments

  • Muralidhar K
    Aug 9, 2011

    The information was useful. Thanks for the article Jim Noyes.

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