American Loan Office

Text (OCR of the scan at left; may contain errors)

In tee Marrer or SUPREME LOAN COMPANY porna BUSINESS AS AMERICAN LOAN OFFICE CONSENT ORDER, EVC., IN REGARD TO ‘THLE ALLEGED VIOLATION OF TIE FEDERAL TRADE COMMISSION AND THE TRUE IN LENDING ACTS Docket C-2048. Complaint, Scpt. 22 1971—Decision, Sept, 82, 19714 7 i, :

Consent order requiring an Atlanta, Ga., pawnbroker to cease violating the Truth in Lending Act by failing to disclose and print on its documents the terms “annual percentage rate,” and “finance charge,” and failing to make other disclosures required by Regulation Z@ of said Act. Complaint Pursuant to the provisions of the Federal Trade Commission Act, and of the Truth in Lending Act and the regulation promulgated thereunder, and by virtue of the authority vested in it by said Acts, the Federal Trade Commission, having reason to believe that Supreme Loan Company, a corporation doing business as American Loan Office, hereinafter referred to as respondent, has violated the provisions of said. Acts, and the regulation promulgated under the Truth in Lending Act, and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest, hereby issues its complaint stating its charges in that respect as follows: AMERICAN LOAN OFFICE’ ....- 4AT5 ATA Decision and, Order Paracrary 1. Respondent is a corporation formed, organized and existing under and by virtue of the laws of the State of Georgia, - doing business as American Loan Office with its principal office and place of business located at 263 Peters Street, S.W., Atlanta, Georgia. Par. 2. Respondent is now, and for some time last. past has been, engaged in business as a pawnbroker, securing pledges of personal property as a condition to the extension of loans of money to the publi.

Par. 3. In the ordinary course and conduct of its business, as aforesaid, respondent regularly extends, and for some time last past has regularly extended, consumer credit as “consumer credit” is defined in Regulation Z, the implementing regulation of the Truth in Lending Act duly promulgated by the Board of Governors of the Federal Reserve System.

Par. 4. Subsequent to July 1, 1969, respondent, in the ordinary course of business and in connection with loan transactions, has caused and is causing customers to execute pledge agreements which contain loan disclosure statements, hereinafter referred to as the “agreement.” Respondent provides customers with no consumer credit cost disclosures other than those in the agreement. By and through the use of the agreement, respondent :

1. Fails to employ the terms “finance charge” and “annual percentage rate” more conspicuously than other required terminology, as required by Section 226.6 (a) of Regulation Z. 2. Fails to disclose the “annual percentage rate” as required by Section 226.8(b) (2) of Regulation Z in numerous instances by leaving the space provided for this disclosure blank. —. Par. 5. Pursuant to Section 103(q) of the Truth in Lending Act, respondent’s aforesaid failures to comply with the provisions of Regulation Z constitute violations of that Act and, pursuant to Section 108 thereof, respondent has thereby violated the Federal Trade Commission Act.

DrEcISION AND ORDER The Federal Trade Commission having initiated an investigation of certain acts and practices of the respondent named in the caption hereof, and the respondent having been furnished thereafter with a copy of a draft of complaint which the Atlanta Regional Office proposed to present to the Commission for its consideration and which, if issued by the Commission, would charge respondent, with violation of the Federal Trade Commission Act, the Truth in Lending Act and the implementing regulation promulgated thereunder; and & A476 FEDERAL TRADE COMMISSION DECISIONS Decision and Order 19 ETC.

The respondent and counsel for the Commission having executed an agreement containing a consent order, an admission by the respondent of all the jurisdictional facts set forth in the aforesaid draft of complaint, a statement that the signing of said agreement is for settlement purposes only and does not constitute an admission by respondent that the law has been violated as alleged in such complaint, and waivers and other provisions as required by the Commission’s rules; and The Commission having thereafter considered the matter and having determined that it had reason to believe that the respondent has violated the said Acts, and that complaint should issue stating its charges in that respect, and having thereupon accepted the executed consent agreement and placed such agreement on the public record for a period of thirty (30) days, now in further conformity with the procedure prescribed in Section 2.34(b) of its rules, the Commission hereby issues its complaint, makes the following jurisdictional findings, and enters the following order :

1. Respondent is a corporation formed, organized and existing under and by virtue of the laws of the state of Georgia, with its office and principal place of business located at 263 Peters Street, S.W., Atlanta, Georgia.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent, and the proceeding is in the public interest.

ORDER It is ordered, That respondent, Supreme Loan Company, a corporation doing business as American Loan Office or under any other name, and respondents’ agents, representatives and employees, directly or through any corporate or other device, in connection with any extension of consumer credit or any advertisement to aid, promote or assist directly or indirectly any extension of consumer credit, as “consumer credit” and “advertisement” are defined in Regulation Z (12 CFR § 296) of the Truth in Lending Act (Public Law 90-821, 15 U.S.C. 1601 et seq.), do forthwith cease and desist from: 1. Failing to print the terms “annual percentage rate” and “finance charge,” where required by Regulation Z to be used, more conspicuously than other required terminology, as set forth in Section 226.6 (a) of Regulation Z.

2. Failing to disclose the rate of finance charge as an annual percentage rate, computed in accordance with Section 226.5 of Regulation Z, as required by Section 226.8 (b) (2) of Regulation Z. 3. Failing, in any consumer credit transaction or advertisement, 474 Complaint to make all disclosures determined in accordance with Section 226.4 and Section 226.5 of Regulation Z in the manner, form and amount required by Sections 226.6, 226. 8, 226.9 and 226.10 of Regulation Z.

It is further ordered, That respondent deliver a copy of this order to cease and desist to all present and future personnel of respondents engaged in the consummation of any extension of consumer credit or in any aspect of preparation, creation, or placing of advertising, and that respondent secure a signed statement acknowledging receipt of said order from each such person.

It is further ordered, That respondent notify the Commission at least thirty (30) days prior to any proposed change in the corporate respondent, such as dissolution, assignment, or sale, resultant in the emergence of a successor corporation, the creation or dissolution of subsidiaries, or any other change in the corporation which may affect compliance obligations arising out of the order. . It is further ordered, That the respondent herein shall, within sixty (60) days after service upon it of this order, file with the Commission a report in writing setting forth in detail the manner and form in which it has complied with this order.