Evening star., 1939-05-21

pay so much a week. The contract
is long and mystifying. Few ever
read it and fewer understand it.
Then time goes on. Perhaps only
one more weeks payment is due.
The purchaser for some reason may
fail to make the payment on time.
The dealer is permitted by law to
seize not only his equipment but the
car in which 1t is installed. 1t may
be done within "a hours. He is al
lowed to break into a garage If
necessary. All he has to do then
is to notify the police that the car
has been repossessed and not stolen.
He takes the car and sells it to
make up for what is due him. Few
times does the owner ever receive
what further amount was obtained.
For missing one payment this may
and does happen. Not only is the
radio or tire gone, but the auto, too.
1t is part of the contract lien.
Now car is a very movable af-
fair. The owner after defaulting
his payment can whisk his auto
away and far away in a short time.
That is why the courts permit i'm
mediate seizure instead of insist
ing upon 10 or 80 days grace. 1t
Is true that many owners on time
are not honest themselves. The
dealer has to be protected. Repu-
table dealers will not take such
drastic steps. But while the law
permits immediate seizure others
are bound to take advantage.
What is needed is a change in
the law here and in Maryland. The
A. A. A. committee at the present
time believes that court order
should be necessary before a car
can be repossessed. For the pro-
lection of the dealer it believes that
the owner in default should be
charged for the replevin costs and
for the dealers bond. That seems
to be fair. However. it takes legis-
lation for this and at the present
moment the A. A A. committee is
trying to ascertain what legislation
will be fair for all sides concerned.
In the meantime it is endeavoring
to find out just how far these shady
practices exist in the city. 1t is
known that they do exist but it
is worth while in knowing how
much.
Until this is accomplished, play
safe, buy safe and borrow safe.
Go to known reputable dealer.
At the present time it is case
of "caveat emptor," let the buyer
beware.
The American Automobile Asso-
citation is not only going into this
serious situation locally but ma
tionally Here is the national news:
Abuses in the financing of au-
tomobiles and automobile accesso-
rles by a gyp fringe of fy-by- night
finance concerns have reached the
proportions of a Nationwide scan
dal, the American Automobile As
soclation charged today.
The depredations of this un-
scrupulous element in the finance
business work hardships not only
on automobile purchasers but also
on reputable dealers and reputable
finance companies declared Thom-
as P. Henry, president of the ma
tlonal motoring body.
Revelations in the recent report
of the Maryland commissioner of
loans he continued. threw the
spotlight on an unsavory condition
that is virtually national in scope.
| The time has come when all re-
sponSible elements in the automo-
tive field must join hands in STOP
ping the plunderings of the minor
ity among the finance companies.
Because of its mobility, the au-
tomobile has been specially treated
under the law and the seller has
been given the maximum of pro-
lection. The purchaser has been
almost entirely disregarded. Sharp
sters have taken advantage of this
situation, and a wide variety of
abuses have resulted most of which
are not reached by existing law.
Included among these abuses
| are: Exorbitant finance charges,
running up to as high as 400 per
cent; finance packs. in which a
portion of fictitiously high charge
is rebated to the dealer, finance
kiting by means of which the con-
tract is shifted from one company
to another until the purchaser, not
knowing where to make payment, is
forced into default; balloon notes,
through which the purchaser pays