Chrysler Corporation

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IN THE MATTER OF CHRYSLER CORPORATION, ET AL.

MODIFYING ORDER, IN REGARD TO ALLEGED VIOLATION OF SEC. 5 OF THE FEDERAL TRADE COMMISSION ACT Docket 9072. Final Order, Feb. 1981-Modifying Order, Feb. , 1982 This order reopens the proceedings and modifies the Commission s order issued on February 18, 1981 97 !,' C. 139; 45 I"R 70883. The modification sets a single effective date for implementing both sets of retail installment contract revisions.

ORDER REOPENING AND MODIFYING CONSENT ORDER On February 18, 1981 the Commission issued a Decision and Order against respondents Chrysler Corporation and Chrysler Credit Corporation 1 in connection with the extension and enforcement of motor vehicle retail credit obligations and the disposition of repossessed motor vehicles. There is now before the Commission a request by Chrysler Credit Corporation (filed December 4, 1981) for reopening and modification of that Order pursuant to Section 2.51 of the Commission s Rules of Practice, 16 C. R. 2.51. The Order (Paragraph VI.C) required Chrysler Credit to cease, by February 18, 1982, all use of retail installment contract forms which erroneously state debtors' liability for a deficiency upon repossession. Another provision required such Chrysler Credit contracts to include recitals of debtors' rights to any repossession surplus. Under Paragraph VI.B, contract forms reflecting the latter revision were to be distributed for dealer use within a year after Commission issuance of a final rule or adjudicated order relative to such rights. Desirous of making the necessary changes at once rather than in successive steps, Chrysler Credit's request asks that April 1 , 1982 be fixed as the date for effectuation of both sets of retail installment contract revisions required of it by our February 18, 1981 Order. With respect to deficiency recitals this would involve a delay of approximately six weeks; with respect to the recitals of surplus rights it would advance the required implementation date by an indeterminable number ofmonths.

, A separate consent ordf'T ued simultaneously as to a corespondent, Aurora Chryslcr.Plymouth, Inc, is not involVfd in the modification request addressed herein. . ltcause the timing of theactions specified in Paragraphs VLA and D depends On Paragr"phs VI.B and C , nO modification of Paragraphs A and n is necessary to accomplish Chrysler Credit s desired result Chrysler Cr..dit hasabanrloned its re'luestfor change of Paragraphs VI.A and n " Our only adjudicated order concerning repossession surpluses is not yet. Fm"c;sfinal Ford, Inc- v. F'' 654 2d599(9t.hair. 19ROJ, petitionforrehearingp..nding 346 FEm RAL TRADE COMMISSION DECISIONS Modifying Order 99 F.

The Commission is of the opinion that the minor six week delay in implementation as to deficiency recitals is more than offset by the benefits of establishing a date certain for Chrysler Credit's effectuation as to surplus rights. The public interest will be served by modifying the Order as requested. Therefore It is ordered That Docket 9072 be, and hereby is, reopened for the limited purpose of effecting the following changes in the Order as to Chrysler Credit Corporation.

It is further ordered That Paragraph VI.B be modified to read as follows:

B. Shall distribute on or before April 1, 1982 the revised retail installment contract forms to all Dealers who use Chrysler Credit installment contract forms. It is further ordered That Paragraph VI.C be modified to read as follows:

c. Shall, no later than Aprij 1 , 1982, cease and desist the use of any Chrysler Credit retail installment contract form which represents that the debtor may be liable to pay a deficiet:cy where Chrysler Credit knows or should know that it is not entitled under slate or federal law to collect a deficiency. 347 Complaint