We Give Loans, Inc.; Analysis of the Proposed Consent Order to Aid Public Comment, 36873-36875 [E8-14663]
Download as PDF
Federal Register / Vol. 73, No. 126 / Monday, June 30, 2008 / Notices
Cara
Peterson or Quisaira Whitney, FTC
Bureau of Consumer Protection, 600
Pennsylvania Avenue, NW, Washington,
D.C. 20580, (202) 326-3224.
SUPPLEMENTARY INFORMATION: Pursuant
to section 6(f) of the Federal Trade
Commission Act, 38 Stat. 721, 15 U.S.C.
46(f), and § 2.34 of the Commission
Rules of Practice, 16 CFR 2.34, notice is
hereby given that the above-captioned
consent agreement containing a consent
order to cease and desist, having been
filed with and accepted, subject to final
approval, by the Commission, has been
placed on the public record for a period
of thirty (30) days. The following
Analysis to Aid Public Comment
describes the terms of the consent
agreement, and the allegations in the
complaint. An electronic copy of the
full text of the consent agreement
package can be obtained from the FTC
Home Page (for June 24, 2008), on the
World Wide Web, at (https://
www.ftc.gov/os/2008/06/index.htm). A
paper copy can be obtained from the
FTC Public Reference Room, Room 130H, 600 Pennsylvania Avenue, NW,
Washington, D.C. 20580, either in
person or by calling (202) 326-2222.
Public comments are invited, and may
be filed with the Commission in either
paper or electronic form. All comments
should be filed as prescribed in the
ADDRESSES section above, and must be
received on or before the date specified
in the DATES section.
jlentini on PROD1PC65 with NOTICES
FOR FURTHER INFORMATION CONTACT:
Analysis of Agreement Containing
Consent Order to Aid Public Comment
The Federal Trade Commission has
accepted, subject to final approval, an
agreement containing a consent order
from Aliyah Associates, LLC d/b/a
American Advance (‘‘respondent’’).
The proposed consent order has been
placed on the public record for thirty
(30) days for receipt of comments by
interested persons. Comments received
during this period will become part of
the public record. After thirty (30) 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.
Respondent engaged in practices that
violate Section 144 of the Truth in
Lending Act (‘‘TILA’’), 15 U.S.C. § 1664,
and Section 226.24(c) of its
implementing Regulation Z, 12 C.F.R.
§ 226.24(c). Respondent disseminated
payday loan advertisements on the
Internet stating the number of payments
or period of repayment, or the amount
of a finance charge, as terms for
obtaining a payday loan. These
advertisements failed, however, to
VerDate Aug<31>2005
18:02 Jun 27, 2008
Jkt 214001
disclose the ‘‘annual percentage rate’’ or
‘‘APR’’ for these loans as required by
TILA and its implementing Regulation
Z.
TILA and Regulation Z require that
advertisers, including payday loan
advertisers, disclose APRs on their loans
to assist consumers in comparison
shopping. The respondent’s failure to
disclose the APR for the payday loans
it advertised undermined consumers’
ability to compare these loans to those
offered by other payday lenders. The
respondent’s failure to disclose the APR
for the payday loans it advertised also
frustrated consumers’ ability to compare
these loans to alternative forms of
credit. Through its law enforcement
actions the Commission intends to
promote compliance with the APR
disclosure requirements of TILA and
Regulation Z, thereby promoting
comparison shopping relating to payday
loans.
The proposed consent order contains
provisions designed to prevent
respondent from failing to make
disclosures required by TILA and
Regulation Z in the future.
Part I.A. of the proposed order
prohibits respondent, in connection
with any advertisement of consumer
credit, from stating the amount or
percentage of any down payment, the
number of payments or period of
repayment, the amount of any payment,
or the amount of any finance charge,
without disclosing clearly and
conspicuously all of the terms required
by TILA and Regulation Z, including the
amount or percentage of the down
payment, the terms of repayment, and
the annual percentage rate, using that
term or the abbreviation ‘‘APR.’’
Part I.B. of the proposed order
prohibits respondent from stating a rate
of finance charge without stating the
rate as an ‘‘annual percentage rate’’ or
the abbreviation ‘‘APR.’’
Part I.C. of the proposed order
prohibits respondent from failing to
comply in any other respect with TILA
or Regulation Z.
Part II of the proposed order contains
a document retention requirement, the
purpose of which is to ensure
compliance with the proposed order. It
requires that respondent maintain all
records that will demonstrate
compliance with the proposed order.
Part III of the proposed order requires
respondent to distribute copies of the
order to various principals, officers,
directors, and managers, and all current
and future employees, agents and
representatives having responsibilities
with respect to the subject matter of the
order.
PO 00000
Frm 00037
Fmt 4703
Sfmt 4703
36873
Part IV of the proposed order requires
respondent to notify the Commission of
any changes in its corporate structure
that might affect compliance with the
order.
Part V of the proposed order requires
respondent to file with the Commission
one or more reports detailing
compliance with the order.
Part VI of the proposed order is a
‘‘sunset’’ provision, dictating the
conditions under which the order will
terminate twenty years from the date it
is issued or twenty years after a
complaint is filed in federal court, by
either the United States or the FTC,
alleging any violation of the order.
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 their terms.
By direction of the Commission.
Richard C. Donohue
Acting Secretary
[FR Doc. E8–14664 Filed 6–27–08: 8:45 am]
BILLING CODE 6750–01–S
FEDERAL TRADE COMMISSION
[File No. 072 3205]
We Give Loans, Inc.; Analysis of the
Proposed Consent Order to Aid Public
Comment
Federal Trade Commission.
Proposed Consent Agreement.
AGENCY:
ACTION:
SUMMARY: The consent agreement in this
matter settles alleged violations of
federal law prohibiting unfair or
deceptive acts or practices or unfair
methods of competition. The attached
Analysis to Aid Public Comment
describes both the allegations in the
draft complaint and the terms of the
consent order — embodied in the
consent agreement — that would settle
these allegations.
DATES: Comments must be received on
or before July 24, 2008
ADDRESSES: Interested parties are
invited to submit written comments.
Comments should refer to ‘‘We Give
Loans, File No. 072 3205,’’ to facilitate
the organization of comments. A
comment filed in paper form should
include this reference both in the text
and on the envelope, and should be
mailed or delivered to the following
address: Federal Trade Commission/
Office of the Secretary, Room 135-H,
600 Pennsylvania Avenue, N.W.,
Washington, D.C. 20580. Comments
containing confidential material must be
filed in paper form, must be clearly
E:\FR\FM\30JNN1.SGM
30JNN1
36874
Federal Register / Vol. 73, No. 126 / Monday, June 30, 2008 / Notices
jlentini on PROD1PC65 with NOTICES
labeled ‘‘Confidential,’’ and must
comply with Commission Rule 4.9(c).
16 CFR 4.9(c) (2005).1 The FTC is
requesting that any comment filed in
paper form be sent by courier or
overnight service, if possible, because
U.S. postal mail in the Washington area
and at the Commission is subject to
delay due to heightened security
precautions. Comments that do not
contain any nonpublic information may
instead be filed in electronic form by
following the instructions on the webbased form at (https://
secure.commentworks.com/ftcWeGiveLoans). To ensure that the
Commission considers an electronic
comment, you must file it on that webbased form.
The FTC Act and other laws the
Commission administers permit the
collection of public comments to
consider and use in this proceeding as
appropriate. All timely and responsive
public comments, whether filed in
paper or electronic form, will be
considered by the Commission, and will
be available to the public on the FTC
website, to the extent practicable, at
www.ftc.gov. As a matter of discretion,
the FTC makes every effort to remove
home contact information for
individuals from the public comments it
receives before placing those comments
on the FTC website. More information,
including routine uses permitted by the
Privacy Act, may be found in the FTC’s
privacy policy, at (https://www.ftc.gov/
ftc/privacy.shtm).
FOR FURTHER INFORMATION CONTACT: Cara
Peterson or Quisaira Whitney, FTC
Bureau of Consumer Protection, 600
Pennsylvania Avenue, NW, Washington,
D.C. 20580, (202) 326-3224.
SUPPLEMENTARY INFORMATION: Pursuant
to section 6(f) of the Federal Trade
Commission Act, 38 Stat. 721, 15 U.S.C.
46(f), and § 2.34 of the Commission
Rules of Practice, 16 CFR 2.34, notice is
hereby given that the above-captioned
consent agreement containing a consent
order to cease and desist, having been
filed with and accepted, subject to final
approval, by the Commission, has been
placed on the public record for a period
of thirty (30) days. The following
Analysis to Aid Public Comment
describes the terms of the consent
agreement, and the allegations in the
complaint. An electronic copy of the
1 The comment must be accompanied by an
explicit request for confidential treatment,
including the factual and legal basis for the request,
and must identify the specific portions of the
comment to be withheld from the public record.
The request will be granted or denied by the
Commission’s General Counsel, consistent with
applicable law and the public interest. See
Commission Rule 4.9(c), 16 CFR 4.9(c).
VerDate Aug<31>2005
16:15 Jun 27, 2008
Jkt 214001
full text of the consent agreement
package can be obtained from the FTC
Home Page (for June 24, 2008), on the
World Wide Web, at (https://
www.ftc.gov/os/2008/06/index.htm). A
paper copy can be obtained from the
FTC Public Reference Room, Room 130H, 600 Pennsylvania Avenue, NW,
Washington, D.C. 20580, either in
person or by calling (202) 326-2222.
Public comments are invited, and may
be filed with the Commission in either
paper or electronic form. All comments
should be filed as prescribed in the
ADDRESSES section above, and must be
received on or before the date specified
in the DATES section.
Analysis of Agreement Containing
Consent Order to Aid Public Comment
The Federal Trade Commission has
accepted, subject to final approval, an
agreement containing a consent order
from We Give Loans, Inc.
(‘‘respondent’’).
The proposed consent order has been
placed on the public record for thirty
(30) days for receipt of comments by
interested persons. Comments received
during this period will become part of
the public record. After thirty (30) 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.
Respondent engaged in practices that
violate Section 144 of the Truth in
Lending Act (‘‘TILA’’), 15 U.S.C. § 1664,
and Section 226.24(c) of its
implementing Regulation Z, 12 C.F.R.
§ 226.24(c). Respondent disseminated
payday loan advertisements on the
Internet stating the number of payments
or period of repayment, or the amount
of a finance charge, as terms for
obtaining a payday loan. These
advertisements failed, however, to
disclose the ‘‘annual percentage rate’’ or
‘‘APR’’ for these loans as required by
TILA and its implementing Regulation
Z.
TILA and Regulation Z require that
advertisers, including payday loan
advertisers, disclose APRs on their loans
to assist consumers in comparison
shopping. The respondent’s failure to
disclose the APR for the payday loans
it advertised undermined consumers’
ability to compare these loans to those
offered by other payday lenders. The
respondent’s failure to disclose the APR
for the payday loans it advertised also
frustrated consumers’ ability to compare
these loans to alternative forms of
credit. Through its law enforcement
actions the Commission intends to
promote compliance with the APR
disclosure requirements of TILA and
PO 00000
Frm 00038
Fmt 4703
Sfmt 4703
Regulation Z, thereby promoting
comparison shopping relating to payday
loans.
The proposed consent order contains
provisions designed to prevent
respondent from failing to make
disclosures required by TILA and
Regulation Z in the future.
Part I.A. of the proposed order
prohibits respondent, in connection
with any advertisement of consumer
credit, from stating the amount or
percentage of any down payment, the
number of payments or period of
repayment, the amount of any payment,
or the amount of any finance charge,
without disclosing clearly and
conspicuously all of the terms required
by TILA and Regulation Z, including the
amount or percentage of the down
payment, the terms of repayment, and
the annual percentage rate, using that
term or the abbreviation ‘‘APR.’’
Part I.B. of the proposed order
prohibits respondent from stating a rate
of finance charge without stating the
rate as an ‘‘annual percentage rate’’ or
the abbreviation ‘‘APR.’’
Part I.C. of the proposed order
prohibits respondent from failing to
comply in any other respect with TILA
or Regulation Z.
Part II of the proposed order contains
a document retention requirement, the
purpose of which is to ensure
compliance with the proposed order. It
requires that respondent maintain all
records that will demonstrate
compliance with the proposed order.
Part III of the proposed order requires
respondent to distribute copies of the
order to various principals, officers,
directors, and managers, and all current
and future employees, agents and
representatives having responsibilities
with respect to the subject matter of the
order.
Part IV of the proposed order requires
respondent to notify the Commission of
any changes in its corporate structure
that might affect compliance with the
order.
Part V of the proposed order requires
respondent to file with the Commission
one or more reports detailing
compliance with the order.
Part VI of the proposed order is a
‘‘sunset’’ provision, dictating the
conditions under which the order will
terminate twenty years from the date it
is issued or twenty years after a
complaint is filed in federal court, by
either the United States or the FTC,
alleging any violation of the order.
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
E:\FR\FM\30JNN1.SGM
30JNN1
Federal Register / Vol. 73, No. 126 / Monday, June 30, 2008 / Notices
the agreement and proposed order or to
modify in any way their terms.
By direction of the Commission.
Richard C. Donohue
Acting Secretary
[FR Doc. E8–14663 Filed 6–27–08: 8:45 am]
BILLING CODE 6750–01–S
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Agency for Healthcare Research and
Quality
Meeting of the National Advisory
Council for Healthcare Research and
Quality
Agency for Healthcare Research
and Quality (AHRQ).
ACTION: Notice of public meeting.
AGENCY:
jlentini on PROD1PC65 with NOTICES
SUMMARY: In accordance with section
10(a) of the Federal Advisory Committee
Act, 5 U.S.C. app. 2 10(a), this notice
announces a meeting of the National
Advisory Council for Healthcare
Research and Quality.
DATES: The meeting will be held on
Friday, July 25, 2008, from 9 a.m. to 3
p.m.
ADDRESSES: The meeting will be held at
the Eisenberg Conference Center,
Agency for Healthcare Research and
Quality, 540 Gaither Road, Rockville,
Maryland 20850.
FOR FURTHER INFORMATION CONTACT:
Deborah Queenan, Coordinator of the
Advisory Council, at the Agency for
Healthcare Research and Quality, 540
Gaither Road, Rockville, Maryland
20850, (301) 427–1330. For press-related
information, please contact Karen
Migdail at (301) 427–1855.
If sign language interpretation or other
reasonable accommodation for a
disability is needed, please contact Mr.
Donald L. Inniss, Director, Office of
Equal Employment Opportunity
Program, Program Support Center, on
(301) 443–1144, no later than July 11,
2008. The agenda, roster, and minutes
are available from Ms. Bonnie Campbell,
Committee Management Officer, Agency
for Healthcare Research and Quality,
540 Gaither Road, Rockville, Maryland
20850. Ms. Campbell’s phone number is
(301) 427–1554.
SUPPLEMENTARY INFORMATION:
I. Purpose
The National Advisory Council for
Healthcare Research and Quality was
established in accordance with section
921 (now section 931) of the Public
Health Service Act (42 U.S.C. 299c). In
accordance with its statutory mandate,
VerDate Aug<31>2005
18:02 Jun 27, 2008
Jkt 214001
the Council is to advise the Secretary of
the Department of Health and Human
Services and the Director, Agency for
Healthcare Research and Quality
(AHRQ), on matters related to actions of
AHRQ to enhance the quality, improve
the outcomes, and reduce the costs of
health care services; improve access to
such services through scientific
research; and promote improvements in
clinical practice and in the organization,
financing, and delivery of health care
services.
The Council is composed of members
of the public, appointed by the
Secretary, and Federal ex-officio
members.
II. Agenda
On Friday, July 25, the Council
meeting will convene at 9 a.m., with the
call to order by the Council Chair and
approval of previous Council minutes.
The AHRQ director will present her
update on current research, programs,
and initiatives. The agenda will include
a presentation on the National
Healthcare Quality and Disparities
Reports and a discussion on Employer
Engagement in healthcare. The final
agenda will be available on the AHRQ
Web site at https://www.ahrq.gov no later
than July 21, 2008.
Dated: June 18, 2008.
Carolyn M. Clancy,
Director.
[FR Doc. E8–14565 Filed 6–27–08; 8:45 am]
BILLING CODE 4160–90–M
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Food and Drug Administration
[Docket No. FDA–2008–N–0360]
Cooperative Agreement to Establish
and Support the Western Center for
Food Safety (U01)
AGENCY:
Food and Drug Administration,
HHS.
ACTION:
Notice.
SUMMARY: The Food and Drug
Administration (FDA) is announcing a
Request for Application (RFA) Number
RFA–FD–08–004 and its intention to
receive and consider a new sole source
application for the award of a
cooperative agreement in fiscal year
2008 (FY 2008) to establish and support
the Western Center for Food Safety
(WCFS). The WCFS will be located at
the Western Institute for Food Safety
and Security (WIFSS) on the University
of California, Davis (UCD) campus in
Davis, CA.
FOR FURTHER INFORMATION CONTACT:
PO 00000
Frm 00039
Fmt 4703
Sfmt 4703
36875
Scientific/Programmatic Contact:
Steven Gendel, Center for Food
Safety and Applied Nutrition (HFS–
006), Food and Drug
Administration, 5100 Paint Branch
Pkwy., College Park, MD 20740,
301–436–2290, e-mail:
steven.gendel@fda.hhs.gov.
Financial or Grants Management
Contact: Gladys M. Bohler, Division
of Acquisition Support and Grants
(HFA–500), Food and Drug
Administration, 5630 Fishers Lane,
rm. 2105, Rockville, MD 20857,
301–827–7168, FAX: 301–827–
7101, e-mail: gladys.melendezbohler@fda.hhs.gov.
SUPPLEMENTARY INFORMATION:
I. Funding Opportunity Description
A. Background
FDA intends to establish a
cooperative agreement to create the
WCFS to address these issues through
the development of approaches and data
critical to understanding the risks
associated with the interface between
production agriculture and food
protection. Such knowledge is critical to
the development of scientifically
validated ‘‘best practices’’ for mitigating
those risks at the production (versus
processing) level. In establishing this
cooperative agreement, FDA recognizes
the importance of agricultural practices
in the Western states, an increasingly
important food producing region for
fruits, vegetables, specialty crops, and
dairy products; and a key point of entry
for imported foods. The development of
an integrated collaborative food
protection research/education/outreach
program in this region will benefit both
consumers and producers nationwide.
B. Program Research Goals
A proposal is being solicited to
establish and operate a collaborative
center that is designed to meet the
objectives of the RFA. The proposal
should include information on both the
structure and administration of the
center and the approaches that will be
used to establish robust and sustainable
regional, national, and international
research and outreach collaborations
(including collaborations with the
agency’s other Centers of Excellence;
other Centers at UCD, such as the Center
for Produce Safety; and other
components of the University of
California system), as well as strategies
for cultivating additional base support
for the center.
E:\FR\FM\30JNN1.SGM
30JNN1
Agencies
[Federal Register Volume 73, Number 126 (Monday, June 30, 2008)]
[Notices]
[Pages 36873-36875]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-14663]
-----------------------------------------------------------------------
FEDERAL TRADE COMMISSION
[File No. 072 3205]
We Give Loans, Inc.; Analysis of the Proposed Consent Order to
Aid Public Comment
AGENCY: Federal Trade Commission.
ACTION: Proposed Consent Agreement.
-----------------------------------------------------------------------
SUMMARY: The consent agreement in this matter settles alleged
violations of federal law prohibiting unfair or deceptive acts or
practices or unfair methods of competition. The attached Analysis to
Aid Public Comment describes both the allegations in the draft
complaint and the terms of the consent order -- embodied in the consent
agreement -- that would settle these allegations.
DATES: Comments must be received on or before July 24, 2008
ADDRESSES: Interested parties are invited to submit written comments.
Comments should refer to ``We Give Loans, File No. 072 3205,'' to
facilitate the organization of comments. A comment filed in paper form
should include this reference both in the text and on the envelope, and
should be mailed or delivered to the following address: Federal Trade
Commission/Office of the Secretary, Room 135-H, 600 Pennsylvania
Avenue, N.W., Washington, D.C. 20580. Comments containing confidential
material must be filed in paper form, must be clearly
[[Page 36874]]
labeled ``Confidential,'' and must comply with Commission Rule 4.9(c).
16 CFR 4.9(c) (2005).\1\ The FTC is requesting that any comment filed
in paper form be sent by courier or overnight service, if possible,
because U.S. postal mail in the Washington area and at the Commission
is subject to delay due to heightened security precautions. Comments
that do not contain any nonpublic information may instead be filed in
electronic form by following the instructions on the web-based form at
(https://secure.commentworks.com/ftc-WeGiveLoans). To ensure that the
Commission considers an electronic comment, you must file it on that
web-based form.
---------------------------------------------------------------------------
\1\ The comment must be accompanied by an explicit request for
confidential treatment, including the factual and legal basis for
the request, and must identify the specific portions of the comment
to be withheld from the public record. The request will be granted
or denied by the Commission's General Counsel, consistent with
applicable law and the public interest. See Commission Rule 4.9(c),
16 CFR 4.9(c).
---------------------------------------------------------------------------
The FTC Act and other laws the Commission administers permit the
collection of public comments to consider and use in this proceeding as
appropriate. All timely and responsive public comments, whether filed
in paper or electronic form, will be considered by the Commission, and
will be available to the public on the FTC website, to the extent
practicable, at www.ftc.gov. As a matter of discretion, the FTC makes
every effort to remove home contact information for individuals from
the public comments it receives before placing those comments on the
FTC website. More information, including routine uses permitted by the
Privacy Act, may be found in the FTC's privacy policy, at (https://
www.ftc.gov/ftc/privacy.shtm).
FOR FURTHER INFORMATION CONTACT: Cara Peterson or Quisaira Whitney, FTC
Bureau of Consumer Protection, 600 Pennsylvania Avenue, NW, Washington,
D.C. 20580, (202) 326-3224.
SUPPLEMENTARY INFORMATION: Pursuant to section 6(f) of the Federal
Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46(f), and Sec. 2.34 of
the Commission Rules of Practice, 16 CFR 2.34, notice is hereby given
that the above-captioned consent agreement containing a consent order
to cease and desist, having been filed with and accepted, subject to
final approval, by the Commission, has been placed on the public record
for a period of thirty (30) days. The following Analysis to Aid Public
Comment describes the terms of the consent agreement, and the
allegations in the complaint. An electronic copy of the full text of
the consent agreement package can be obtained from the FTC Home Page
(for June 24, 2008), on the World Wide Web, at (https://www.ftc.gov/os/
2008/06/index.htm). A paper copy can be obtained from the FTC Public
Reference Room, Room 130-H, 600 Pennsylvania Avenue, NW, Washington,
D.C. 20580, either in person or by calling (202) 326-2222.
Public comments are invited, and may be filed with the Commission
in either paper or electronic form. All comments should be filed as
prescribed in the ADDRESSES section above, and must be received on or
before the date specified in the DATES section.
Analysis of Agreement Containing Consent Order to Aid Public Comment
The Federal Trade Commission has accepted, subject to final
approval, an agreement containing a consent order from We Give Loans,
Inc. (``respondent'').
The proposed consent order has been placed on the public record for
thirty (30) days for receipt of comments by interested persons.
Comments received during this period will become part of the public
record. After thirty (30) 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.
Respondent engaged in practices that violate Section 144 of the
Truth in Lending Act (``TILA''), 15 U.S.C. Sec. 1664, and Section
226.24(c) of its implementing Regulation Z, 12 C.F.R. Sec. 226.24(c).
Respondent disseminated payday loan advertisements on the Internet
stating the number of payments or period of repayment, or the amount of
a finance charge, as terms for obtaining a payday loan. These
advertisements failed, however, to disclose the ``annual percentage
rate'' or ``APR'' for these loans as required by TILA and its
implementing Regulation Z.
TILA and Regulation Z require that advertisers, including payday
loan advertisers, disclose APRs on their loans to assist consumers in
comparison shopping. The respondent's failure to disclose the APR for
the payday loans it advertised undermined consumers' ability to compare
these loans to those offered by other payday lenders. The respondent's
failure to disclose the APR for the payday loans it advertised also
frustrated consumers' ability to compare these loans to alternative
forms of credit. Through its law enforcement actions the Commission
intends to promote compliance with the APR disclosure requirements of
TILA and Regulation Z, thereby promoting comparison shopping relating
to payday loans.
The proposed consent order contains provisions designed to prevent
respondent from failing to make disclosures required by TILA and
Regulation Z in the future.
Part I.A. of the proposed order prohibits respondent, in connection
with any advertisement of consumer credit, from stating the amount or
percentage of any down payment, the number of payments or period of
repayment, the amount of any payment, or the amount of any finance
charge, without disclosing clearly and conspicuously all of the terms
required by TILA and Regulation Z, including the amount or percentage
of the down payment, the terms of repayment, and the annual percentage
rate, using that term or the abbreviation ``APR.''
Part I.B. of the proposed order prohibits respondent from stating a
rate of finance charge without stating the rate as an ``annual
percentage rate'' or the abbreviation ``APR.''
Part I.C. of the proposed order prohibits respondent from failing
to comply in any other respect with TILA or Regulation Z.
Part II of the proposed order contains a document retention
requirement, the purpose of which is to ensure compliance with the
proposed order. It requires that respondent maintain all records that
will demonstrate compliance with the proposed order.
Part III of the proposed order requires respondent to distribute
copies of the order to various principals, officers, directors, and
managers, and all current and future employees, agents and
representatives having responsibilities with respect to the subject
matter of the order.
Part IV of the proposed order requires respondent to notify the
Commission of any changes in its corporate structure that might affect
compliance with the order.
Part V of the proposed order requires respondent to file with the
Commission one or more reports detailing compliance with the order.
Part VI of the proposed order is a ``sunset'' provision, dictating
the conditions under which the order will terminate twenty years from
the date it is issued or twenty years after a complaint is filed in
federal court, by either the United States or the FTC, alleging any
violation of the order.
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
[[Page 36875]]
the agreement and proposed order or to modify in any way their terms.
By direction of the Commission.
Richard C. Donohue
Acting Secretary
[FR Doc. E8-14663 Filed 6-27-08: 8:45 am]
BILLING CODE 6750-01-S