Evening star., 1960-01-18
Finance Firms
BackContrOfs
On Car Loans
7 Companies Coll
For 3-Woy Curb
On D. c. Practices

On D. c. Practices
By MIRIAM GUTENBERG
Star Stan Writer
Spokesman for seven finance
companies here today came out
for legislation to control their
own industry.
All seven are members of the
Automotive Trade Association
National Capital Area, which
has been working with District
authorities on rules to curb the
used-car racket here.
All favored legislation which
would:
l. Fix maximum rates that
finance companies may charge
to finance automobiles bought
on the installment plan. AS
The Stars Buyer Beware"
series exposing the uSed-car
racket brought out. uncon-
trolled finance charges now run
as high as so per cent of the
balance owed on a car.
2. Assure a refund to Gus
toners who pay of their car
debt ahead of time. The
companies that fix exorbitant
finance charges also refuse to
make rebates for proponents.
3. Protect customers from
car Snatchers who repossess
cars without warning. After
repossession. the complained
about finance companies either
charge high fees for a customer
to redeem his car or sell it pri-
vately for a ridiculouSly low
price, suing the customer for
the difference between what
the finance company got for
the car and what the customer
owed.
State Laws Cited
The seven finance company
spokesmen also said they favor
ed provisions similar to the
Maryland laws which protect
the buying public from un-
scrupulous finance company
used car dealer combines.
Legislation regulating finance
charges on automobile sales is
due to 60 to the Capitol this
week.
Weldon Benson, vice presi-
dent of Universal CIT said his
organization has been active
nationally to get legislation to
eliminate many of the evil
practices" uncovered here.
He expressed belief that
satisfactory legislation would
eliminate many Of the practices
by some companies that reflect
on US ALL"
John +. Sides, branch man
ager of GMAC, said he favored
Legislation Ito protect the pub
lie from unscrupulous practices
in the industry and afford the
car buyer protection for his
equity and fair charge for use
of the money"
He stressed enforcement of
rate ceilings through licensing
finance companies and giving
the Commissioners broad pow
ers to protect the public on re-
possessions and to assure re-
bates for paying of car debts
ahead of time.
J. j. Beauvais, branch man
ager of Associates Discount
Corporation, said before other
States got finance-company
legislation he had seen some
unscrupulous practices, but l
have never seen it so rampant
as in the District"
Penn'S Comment
Roy j. Penn, branch manager
of Commercial Credit Corp,
said Maryland'S strict finance
laws had driven out the un-
scrupulous operators, who had
found a fertile field here.
w. H. Brown, branch man
ager of the GAG sales finance
division, said he had returned
recently from Baltimore which
was like a cleaner neighbor-
hood" compared to Washington
as far as finance operations
were concerned.
He said that finance rates
in Maryland were more than
equitable" and he, too, favored
r bates on unused charages.
Reputable companies, he said,
can and do operate under the
Maryland laws. Like some Of
the other finance company
spokesmen, he favored a ban
on pickup payments" Qarge
payments soon after purchaSe)
and balloon notes" dump sum
payments due at the end Of the
monthly installments).
j. Leo Risacher, branch man
ager of Eastern Acceptance
Corporation, said he favored
finance company legislation
mainly ito establish in the
minds of the buying public that
there is something they can
depend on, so they know what
to expect when they sign a
contract"
The Maryland rate ceilings
are SO per 500 on a new car,
$l2 per 500 on a car up to
two years old and SIS on a car
OF model more than two years
earlier. A model law also under
consideration at the District