Federal Register / Vol. 62, No. 32 / Tuesday, February 18, 1997 / Notices 7233

approval, to a proposed consent order

from The Money Tree, Inc. (‘‘Money

Tree’’), and Vance R. Martin,

individually and as an officer of Money

Tree (collectively referred to as

‘‘respondents’’).

The proposed order would settle

charges that Money Tree, which also

does business as Money To Lend, Inc.

and Money To Lend, violated the Truth

in Lending Act (‘‘TILA’’) and its

implementing Regulation Z. The

proposed order would also resolve

allegations that Money Tree and Vance

R. Martin violated the Federal Trade

Commission Act (‘‘FTC Act’’) and the

Fair Credit Reporting Act (‘‘FCRA’’).

The TILA and Regulation Z require

creditors to provide consumers with

written disclosures of the costs and

credit terms associated with loans.

Section 5 of the FTC Act prohibits

unfair or deceptive acts or practices in

or affecting commerce. The FCRA

requires creditors to provide applicants

who are denied credit due to

information contained in a credit report

with a notice containing the name and

address of the credit reporting agency

that supplied the report.

The proposed consent order has been

placed on the public record for sixty

(60) days for reception of comments by

interested persons. Comments received

during this period will become part of

the public record. After sixty (60) days,

the Commission will again review the

agreement and the comments received

and will decide whether it should

withdraw from the agreement or make

final the agreement’s proposed order.

The complaint alleges that Money

Tree required consumers to purchase

credit-life insurance, credit-disability

insurance, accidental death and

dismemberment insurance and/or an

auto club membership (collectively

referred to as ‘‘extras’’) in connection

with its loans, but (1) failed to include

the costs of these extras in the finance

charge and annual percentage rate

(‘‘APR’’) disclosed to consumers, and (2)

wrongfully included the premiums and

fees in the amount financed, causing

customers to pay interest on the

premiums and fees for these extras.

These practices, according to the

complaint, violate sections 106, 107,

and 128 of the Truth in Lending Act

(‘‘TILA’’), 15 U.S.C. §§ 1605, 1606, and

1638, as amended, respectively, and

sections 226.4, 226.4(d), 226.22, and

226.18 (b), (d), and (e) of Regulation Z,

12 C.F.R. §§ 226.4, 226.4(d), 226.22, and

226.18(b), (d) and (e), respectively.

The complaint further alleges that

respondents violated section 5 of the

FTC Act, 15 U.S.C. § 45(a), by inducing

consumers to execute documents stating

that they voluntarily chose the extras

when, in fact, the extras were

mandatory to obtain a loan. Finally, the

complaint alleges that respondents

violated section 615(a) of the FCRA, 15

U.S.C. § 1681m(a), by denying credit to

consumers either wholly or partly

because of information in a report from

a consumer reporting agency but failing

to: (a) advise the applicant, at the time

the applicant was informed of such

adverse action, that the adverse action

was based in whole or in part on

information contained in a consumer

report; and (b) supply the applicant

with the name and address of the

consumer reporting agency making the

report.

The proposed order contains

injunctive provisions designed to

remedy the violations charged and to

prevent respondents from engaging in

similar acts and practices in the future.

Specifically, the order would require

that Money Tree: (1) make all

disclosures in accordance with the

TILA; (2) include in the finance charge

and the APR disclosed to consumers the

costs of extras that consumers are

required to purchase in connection with

their loans; and (3) exclude from the

amount financed disclosed to

consumers the costs of extras that

consumers are required to purchase in

connection with their loans.

The proposed order would also

prohibit respondents from referring to

the availability of any extra without at

the same time disclosing orally: (1) that

the consumer has already been

approved for the loan, (2) the amount of

the loan, (3) that the extras are optional,

(4) that the consumer’s decision about

the extras does not affect the amount of

their loan or whether the consumer will

receive a loan, (5) the amount of the

premium or fee for each extra, and (6)

that Money Tree will add premiums and

fees for the extras to the consumer’s

loan amount. The proposed order would

further require respondents to provide

future customers with a separate

document that states, inter alia, that the

consumer has already been approved for

the loan and that the consumer should

not sign the form unless they want to

buy one of the extras. The proposed

order would also require that

respondents: (a) advise rejected

applicants that they have been denied

credit in whole or in part because of

information in a consumer report; and

(b) give rejected applicants the name

and address of the consumer reporting

agency making the report.

The proposed order would provide

Money Tree customers with an

opportunity to receive refunds. Under

the proposed order, Money Tree must

offer its customers an opportunity to

cancel the credit-life insurance, creditdisability insurance, and accidental

death and dismemberment insurance

written on their loans and obtain cash

refunds or credits to their accounts.

The purpose of this analysis is to

facilitate public comment on the

proposed order, and it is not intended

to constitute an official interpretation of

the agreement and proposed order or to

modify in any way its terms.

Donald S. Clark,

Secretary.

[FR Doc. 97–3911 Filed 2–14–97; 8:45 am]

BILLING CODE 6750–01–M

GENERAL ACCOUNTING OFFICE

Federal Accounting Standards

Advisory Board

Notice of Meeting

SUMMARY: Pursuant to section 10(a)(2) of

the Federal Advisory Committee Act

(Pub. L. No. 92–463), as amended,

notice is hereby given that the Federal

Accounting Standards Advisory Board

will meet on Thursday, February 27,

1997, from 9:00 a.m. to 4:00 p.m. in

room 7C13 of the General Accounting

Office building, 441 G St., NW.,

Washington, DC.

The purpose of the meeting is to

discuss (1) the appropriate classification

of certain Coast Guard cutters and

aircraft, (2) options for social insurance

programs, (3) the cost-of-capital work

plan, and (4) an interpretation issue

from the Environmental Protection

Agency’s Superfund Accounting Branch

related to proper classification of

recoveries of clean-up costs.

Any interested person may attend the

meeting as an observer. Board

discussions and reviews are open to the

public.

FOR FURTHER INFORMATION CONTACT:

Wendy Comes, Executive Director, 750

First St., NE., Room 1001, Washington,

DC 20002, or call (202) 512–7350.

Authority: Federal Advisory Committee

Act. Pub. L. No. 92–463, Section 10(a)(2), 86

Stat. 770, 774 (1972) (current version at 5

U.S.C. app. section 10(a)(2) (1988); 41 CFR

101–6.1015 (1990).

Dated: February 11, 1997.

Wendy M. Comes,

Executive Director.

[FR Doc. 97–3860 Filed 2–14–97; 8:45 am]

BILLING CODE 1610–01–M