Advisory opinion letter

Opini/Jn Letwr May 6, 1977

Dear Sirs:

The Commission is in receipt of the communications from your counsel James H. Rowe, Esquire, dated December 23 , 1976, and January 21 1977, with attached exhibits , which you have fi1cd as a supp1cmental rcport showing the manner and form of your compliance with the order to cease and desist issued on June 26 , 1973, in the above case. The Commission has reviewed the supplemental report of compliance and has concluded, on the assumption that the information submitted is accurate and complete, that no compliance action by the Commission is indicated at this time. The Commission will not be precluded, however from instituting appropriate action shou1d it subsequently appear that such information is inaccurate or incomplete. In addition , the Commission may at any time reconsider, revoke, or rescind such determination should it subsequently appear that such information is inaccurate or incomplete, or if action had been taken in violation of the terms of the order.

In his letter of January 21 , 1977, Mr. Rowe contends that the notification he made in that letter of Commercial Credit Company acquisition of Great Western Loan & Trust Company and its subsidiary, Great Western Finance Company, does not appear to be required by the Commission s order since these companies require the purchase of credit insurance and, as required by law, therefore include the credit insurance premiums in the amount of the finance charge in consumer loans. The Commission wants to make it clear that the notification was required by the order. First, the provisions of the order are not limited to requirements concerning the inclusion or non-inclusion of credit insurance premiums in the amount of the finance charge. Paragraphs 3 through 6 of the order impose additional requirements in connection with the granting of consumer loans. Secondly, a policy of an acquired subsidiary to require credit insurance does not remove tne acquisition from the notification requirement of the order since the acquisition of a corporation engagcd in the making of consumer loans and the sale of