The Wyandotte herald. (Wyandotte, Mich.) 1879-1943, 1942-05-15
NEW CURbS
ON |NSTALLMENT
PURCHASES

Further curbs on inStallment buying
are now in effect as Il result Of an
amendment La Regulation W issued by
the board of governors of the Federal
Reserve system.
The purpose of this revision" the
board stated. is 10 help make effective
The last point in the I-point program
which President Roosevelt set forth n
hi special message 10 Congress, April
- 1872"
In his message. the President stated
that. TO keep The cost Of living from
>piraling upward we must discourage
credit ana inStallmeut buying. and en-
courage the paying off of debts, mort
cages. and other obligations; for this
promotes savings. retardSo excessive
buying and adds 10 the amount avail
able 10 the creditors for the purchase
of war bonds
A. amended the regulation is ex-
tended To cover "A comprehensive list
of durable and Semi-durable goods for
civilian consumption. and contemplates
that the volume of outstanding con-
sumner credit, already substantially
diminished. will be further contracted
in keeping with the governments pur-
pose To prevent the rapid bidding up
of prices.
The principal changes made in the
regulation are:
L. The list Of consumers goods 20
which the regulation applies has been
brOadened To include automobile bat
IL ieS and accessories. tires and tubes;
bedding: draperies; binoculars: house
hold electric appliances not hitherto
listed used furniture; jewelry, lug
gage: athletic equipment: table and
kitchenware; pottery, glassware: yard
goods; and military clothing and
furs. including shoes, hats and other
haberdaShery
>. The maximum permissible ma
turity of inStallment sales has been
reduced TO l. months, and the required
down payment for all listed articles
has been increased TO 33 l-3 per cent
Exceptions to this rule include install
ment sales, Of automobiles. for which
the down payment of One-third and the
maximum maturity of 10 months are
retained, and furniture and pianos,
for which the required down payment,
formerly 10 per cent, becomes 20 per
cent, the maximum maturity being IL
months.
3. The scope of the regulation has
been brOadened TO make il cover, IN
addition TO inStallment sales and in
Stallment loans, charge account sales Of
listed articles and single payment con-
sumner loans. The regulation provides
with respect TO charge accounts that
unless payment is made by the tenth
day OF the second calendar month fol-
lowing the purchase, no further credit
may be extended to purchase any list
Ell article until the items in default
have been paid for in full or have been
placed on an installment basis for pay
ment within six months. No down pay
mems are required on purchases in
charge accounts.
4. Single payment loans Of $500
or less are limited to a maturity of 90
days. and where such a loan is 70 pur-
chase listed article costing $15 or
more, down payment is also required.
If not paid in 80 days. the loan must
De placed on an inStallment basis
D. The revised regulation provides
that installment payments shall not ba
less than 81 per month or 81 % per
week.
The exemption from down payment
requirements of installment sales ma
turing within three months has been
repealed