Madison County Democrat. (London, Ohio) 19??-1958, 1950-09-22

sion is required.
According to its present terms,
Regulation w sets the following
limitations on instalment credit:
for automobiles, downpayment of
at least one-third and maximum
maturities of 81 months. For a
stated list of household appliances,
downpayments of at least Is per-
cent, and maximum maturities of
18 months. For furniture and
rugs, downpayments of at least 10
percent, and maximum maturities
of 18 months. For home repairs
or improvements, downpayments
of at least 10 percent, and max
imum maturities of 30 months.
In case of unclassified instalment
loans, maturities are limited to
l8 months, but there is no down.
payment provision.
1t is very clear that these terms
are somewhat tighter than those
which have been widely offered
in business practice during recent
months when there has been no
regulation in force. The terms
are also somewhat stricter than
those which were specified by
the previous Regulation w, at the
time it expired on June 30th of
last year. At the same time it is
equally clear that the new terms
are more liberal than those which
were in force during most of the
previous experience with Regula-
ton w, that is during World War
II and during a considerable part
of the earlier postwar period.
Numerous questions or possible
misunderstanding about the de-
tailed workings of Regulation w
are likely to come up, in spite of
the fact that all parties concerned
have had considerable experience
with the Regulation in its pre-
vious form, and in spite of the fact
that the text of the Regulation it.
self is plain. The following series
of brief questions and answers is
designed to promote understand
ing of some of the details.
Question: What commodities
are included in the appliance
group, which takes the Is per-
cent minimum downpayment?
Answer: Mechanical refriger-
ators, food freezers, radio or tele-
vision sets, monographs, cooking
stoves. ranges, dishwashers, IRON
ers, washing machines, clothes
driers. sewing machines, suction
cleaners, room-unit air condition
ers and mechanical de-humidifiers.
Question: Does the Regulation
apply to charge accounts?
Answer: No, not in its present
form. It applies to instalment
credit only. This means credit,
arising from a sale or loan,
where the customer agrees to
make two or more scheduled pay
ments. The Regulation, however,
has several provisions about
evasions, and these might come
into operation if charge account
credit should be extended in a
way to circumvent the Regulation.
Question: Who has to register
and how does he go about it?
Answer: A Registration State
ment must be filed by any per-
son or firm engaged in the bus
iness of making instalment sales
or instalment loans; also by any
person or firm which buys or dis
counts instalment paper. In other
words, consumers do not have
to register, but banks, finance
companies, retailers, dealers, ETC.,
who are on the lending side of
instalment credit operations must
register, Furthermore, they must
register before November 18,
1850, whether or not they pre-
viously registered under the Old
Regulation w. Included among
those required to register are
banks or other concerns which
grant instalment, credit for home
repairs or Improvements which is
type of credie again included un-
der Regulation w. Although it was
not covered during the latter part
of the life of the previous Regula-
ton.
Registration is made on special
form provided by the Federal Re-
serve Bank. The Bank will mail
copies of the form to many thous-
ands of firms which are believed
to be subject to the Regulation.
Additional copies of the Registra-
ton form may be obtained by adj
dressing the Consumer Credit De-
partment of the Federal Reserve
Bank of Cleveland at its offices
located here in Cleveland, or in
Cincinnati, Ohio, or Pittsburg,
Pennsylvania.
Question: Can a retailer or deal
er, banker, ETC., transact install
ment credit business before he
has registered?
Answer: Yes. A license to do
such business is granted automat-
ically by the Regulation, but the
license can later be suspended by