Money Store Inc

Text (OCR of the scan at left; may contain errors)

IN THE MATTER OF THE MONEY STORE, INC., ET AL.

CONSENT ORDER, ETC., INREGARD TO ALLEGED VIOLATION OF THE TRUTH IN LENDING ACT, REGULATION Z, AND SEC. 5 OF THE FEDERAL TRADE COMMISSION ACT Docket C-3369. Complaint, Feb. 6, 1992--Decision, Feb. 6, 1992 This consent order requires, among other things, a New Jersey-based company and its subsidiaries to pay injured consumers redress totaling more than $1 million, and prohibits them from violating certain provisions of the Truth in Lending Act.

Appearances For the Commission: Chris M. Couillou.

For the respondents: Joseph Lefkoff, Lefkoff, Duncan, Grimes & Dermer, P.C., Atlanta, GA.

COMPLAINT The Federal Trade Commission, having reason to believe that The Money Store Inc., The Money Store, The Money Store/California Inc., The Money Store/Connecticut Inc., The Money Store/D.C. Inc., The Money Store/Delaware Inc., The Money Store/Empire State Inc., The Money Store Financial Co. Inc., The Money Store/Georgia Inc., The Money Store Home Equity Corp., The Money Store/Kentucky Inc., The Money Store/Maine Inc., The Money Store/Maryland Inc., The Money Store/Massachusetts Inc., The Money Store/New Hampshire Inc., The Money Store/North Carolina Inc., The Money Store/Rhode Island Inc., The Money Store/Vermont Inc., M Mortgage Inc., and The Money Store/Michigan Inc., corporations, ("respondents") have violated Sections 106, 107 and 128 of the Truth in Lending Act, as amended, 15 U.S.C. 1605, 1606 and 1638, and Sections 226.17, 226.18(d) and (g), and 226.22 of Regulation Z, as amended, 12 CFR 226.17, 226.18(d),(g), and 226.22, and it appearing THE MONEY STORE, INC., ET AL. 105 104 Complaint to the Commission that a proceeding by it in respect thereof would be in the public interest, issues this complaint pursuant to Section 5 of the Federal Trade Commission Act, as amended, 15 U.S.C. 45, and alleges:

PARAGRAPH 1. The Money Store Inc. is a New Jersey corporation, with its principal place of business at 2840 Morris Avenue, Union, New Jersey.

PAR. 2. The Money Store is a New Jersey corporation, with its principal place of business at 294 Morris Avenue, Springfield, New Jersey.

PAR. 3. The Money Store/California Inc. is a California corporation, with its principal place of business at 17530 Ventura Blvd., Suite 101, Encino, California.

PAR. 4. The Money Store/Connecticut Inc. is a Connecticut corporation, with its principal place of business at 1025 Silas Deane Hwy., Wethersfield, Connecticut.

PAR. 5. The Money Store/D.C. Inc. is a Virginia corporation with its principal place of business at 3750 University Blvd., Suite 2B, Kensington, Maryland.

PAR. 6. The Money Store/Delaware Inc. is a Delaware corporation, with its principal place of business at 4512 Kirkwood Highway, Wilmington, Delaware.

PAR. 7. The Money Store/Empire State Inc. is a New York corporation, with its principal place of business at 265 Glen Cove Road, Carle Place, New York.

PAR. 8. The Money Store Financial Co. Inc. is a Pennsylvania corporation, with its principal place of business at Trevose Corporate Center, 4612 Street Road, Trevose, Pennsylvania. PAR. 9. The Money Store/Georgia Inc. is a Georgia corporation, with its principal place of business at 1165 Northchase Pkwy., Suite 100, Marietta, Georgia.

PAR. 10. The Money Store Home Equity Corp. is a Kentucky corporation, with its principal place of business at 6100 Dutchman's Lane, Suite 901, Louisville, Kentucky.

PAR. 11. The Money Store/Kentucky Inc. is a Kentucky corporation, with its principal place of business at 6100 Dutchman's Lane, Suite 901, Louisville, Kentucky.

Complaint 11S F.T.C.

PAR. 12. The Money Store/Maine Inc. is a Maine corporation, with its principal place of business at 201 Main Street, Westbrook, Maine.

PAR. 13. The Money Store/Maryland Inc. is a Maryland corporation, with its principal place of business at 920 Providence Road, Suite 101, Towson, Maryland.

PAR. 14. The Money Store/Massachusetts Inc. is a Massachusetts corporation, with its principal place of business at 389 Worcester Road, 2nd Floor, Framingham, Massachusetts. PAR. 15. The Money Store/New Hampshire Inc. is a New Hampshire corporation, with its principal place of business at 981 Second Street, Manchester, New Hampshire.

PAR. 16. The Money Store/North Carolina Inc. is a North Carolina corporation, with its principal place of business at 6525 Morrison Blvd., Suite 408, Charlotte, North Carolina. PAR. 17. The Money Store/Rhode Island Inc. is a Rhode Island corporation, with its principal place of business at 1071 Park Avenue, Cranston, Rhode Island.

PAR. 18. The Money Store/Vermont Inc. is a Vermont corporation, with its principal place of business at 2840 Morris Avenue, Union, New Jersey.

PAR. 19. M Mortgage Inc. is a South Carolina corporation, with its principal place of business at 2840 Morris Avenue, Union, New Jersey.

PAR. 20. The Money Store/Michigan Inc. is a Michigan corporation, with its principal place of business at 16801 Newburgh Road, Suite 103, Livonia, Michigan.

PAR. 21. In the course and conduct of their businesses, directly or through subsidiaries, respondents regularly extend credit to consumers primarily for personal, family or household purposes (hereinafter referred to as consumers 1 3 10 4 6 1359 2362 155 42 96.001511 credit), which credit is subject to a finance charge or payable by written agreement in more than four installments (not including down payment) and with regard to which consumers are initially obligated to repay respondents. PAR. 22. In the course of extending consumer credit, respondents, directly or through subsidiaries, have failed to properly disclose the payment schedule as required by Section 226.18(g) of Regulation Z, 12 CFR 226.18(g). For example and without limitation, THE MONEY STORE, INC., ET AL. 107 104 Complaint respondents have disclosed a monthly payment computed using the 360/360 method or similar method, although respondents frequently amortize their loans using the 365/360 method. As a result, the disclosed payments are insufficient to fully repay the extension of credit in the time period disclosed, and greater payments would be required to repay the credit extension.

PAR. 23. In the course of extending consumer credit, respondents, directly or through subsidiaries, have disclosed finance charges to consumers that were more than $10 below the exact finance charge in transactions involving amounts financed of more than $1000 (hereinafter referred to as finances 1 3 2 5 6 1289 1201 130 45 96.375359 charges 1 3 2 5 7 1444 1200 198 35 96.526451 disclosures 1 3 2 5 8 1666 1199 150 43 92.415298 errors) in violation of Section 226.18(d) of Regulation Z, 16 CFR 226.18(d). Repayment of these extensions of consumer credit would require payment of finance charges greater than those disclosed. PAR. 24. In the course of extending consumer credit, respondents, directly or through subsidiaries, have disclosed annual percentage rates to consumers that were more than 1/8 of one percentage point below the annual percentage rate determined in accordance with Section 226.22 of Regulation Z, 12 CFR 226.22 (hereinafter referred to as annual5 1 3 3 6 6 1204 1731 208 39 96.884499 percentages 1 3 3 6 7 1425 1731 70 27 97.019165 rates 1 3 3 6 8 1509 1724 194 34 96.754539 disclosures 1 3 3 6 9 1717 1723 157 41 95.695107 errors). These extensions of consumer credit did not include one or more of the following features: multiple advances, irregular payment periods, or irregular payment amounts (other than an irregular first period or an irregular first or final payment). Repayment of these extensions of consumer credit would require payment at annual percentage rates greater than those disclosed.

PAR. 25. The finance charge and annual percentage rate disclosure errors committed by respondents resulted from a clear and consistent pattern or practice of violations. PAR. 26. Respondents’ acts or practices as alleged herein were in violation of Sections 106, 107 and 128 of the Truth in Lending Act, 15 U.S.C. 1605, 1606 and 1638, and Sections 226.17, 226.18(d) and (g), and 226.22 of Regulation Z, 12 CFR 226.17, 226.18(d), (g), and 226.22.

PAR. 27. Pursuant to Sections 106, 107, 108(c) and 128 of the Truth in Lending Act 15 U.S.C. 1605, 1606, 1607 (c) and 1638, respondents’ aforesaid failures to comply with Regulation Z constitute violations of that Act.

Decision and Order 115 F.T.C.

DECISION AND ORDER The Federal Trade Commission having initiated an investigation of certain acts and practices of the respondents named in the caption hereof, and the respondents having been furnished thereafter with a copy of a draft of complaint which the Atlanta Regional Office proposed to present to the Commission for its consideration and which, if issued by the Commission, would charge respondents with violation of Sections 106, 107 and 128 of the Truth in Lending Act, as amended, 15 U.S.C. 1605, 1606 and 1638, and Sections 226.17, 226.18(d) and (g), and 226.22 of Regulation Z, as amended, 12 CFR 226.17, 226.18(d),(g), and 226.22, and Section 5 of the Federal Trade Commission Act, as amended, 15 U.S.C. 45; The respondents, their attorney, and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondents of all the jurisdictional facts set forth in the aforesaid draft of complaint, a statement that the signing of said agreement is for settlement purposes only and does not constitute an admission by respondents that the law has been violated as alleged in such complaint, and waivers and other provisions as required by the Commission's Rules; and The Commission having thereafter considered the matter and having determined that it had reason to believe that the respondents have violated the said Act, and that complaint should issue stating its charges in that respect, and having thereupon accepted the executed consent agreement and placed such agreement on the public record for a period of sixty (60) days, now in further conformity with the procedure prescribed in Section 2.34 of its Rules, the Commission hereby issues its complaint, makes the following jurisdictional findings and enters the following order:

1. The Money Store Inc. is a New Jersey corporation, with its principal place of business at 2840 Morris Avenue, Union, New Jersey.

2. The Money Store is a New Jersey corporation, with its principal place of business at 294 Morris Avenue, Springfield, New Jersey.

THE MONEY STORE, INC., ET AL. 109 104 Decision and Order 3. The Money Store/California Inc. is a California corporation with its principal place of business at 17530 Ventura Blvd., Suite 101, Encino, California.

4. The Money Store/Connecticut Inc. is a Connecticut corporation, with its principal place of business at 1025 Silas Deane Hwy., Wethersfield, Connecticut.

5. The Money Store/D.C. Inc. is a Virginia corporation, with its principal place of business at 3750 University Blvd., Suite 2B, Kensington, Maryland.

6. The Money Store/Delaware Inc. is a Delaware corporation, with its principal place of business at 4512 Kirkwood Highway, Wilmington, Delaware.

7. The Money Store/Empire State Inc. is a New York corporation, with its principal place of business at 265 Glen Cove Road, Carle Place, New York.

8. The Money Store Financial Co. Inc. is a Pennsylvania corporation, with its principal place of business at Trevose Corporate Center, 4612 Street Road, Trevose, Pennsylvania. 9. The Money Store/Georgia Inc. is a Georgia corporation, with its principal place of business at 1165 Northchase Pkwy., Suite 100, Marietta, Georgia.

10. The Money Store Home Equity Corp. is a Kentucky corporation, with its principal place of business at 6100 Dutchman's Lane, Suite 901, Louisville, Kentucky.

11. The Money Store/Kentucky Inc. is a Kentucky corporation, with its principal place of business at 6100 Dutchman's Lane, Suite 901, Louisville, Kentucky.

12. The Money Store/Maine Inc. is a Maine corporation, with its principal place of business at 201 Main Street, Westbrook, Maine. 13. The Money Store/Maryland Inc. is a Maryland corporation, with its principal place of business at 920 Providence Road, Suite 101, Towson, Maryland.

14. The Money Store/Massachusetts Inc. is a Massachusetts corporation, with its principal place of business at 389 Worcester Road, 2nd Floor, Framingham, Massachusetts. 15. The Money Store/New Hampshire Inc. is a New Hampshire corporation, with its principal place of business at 981 Second Street, Manchester, New Hampshire.

Decision and Order 115 F.T.C.

16. The Money Store/North Carolina Inc. is a North Carolina corporation, with its principal place of business at 6525 Morrison Blvd., Suite 408, Charlotte, North Carolina. 17. The Money Store/Rhode Island Inc. is a Rhode Island corporation, with its principal place of business at 1071 Park Avenue, Cranston, Rhode Island.

18. The Money Store/Vermont Inc. is a Vermont corporation, with its principal place of business at 2840 Morris Avenue, Union, New Jersey.

19. M Mortgage Inc. is a South Carolina corporation, with its principal place of business at 2840 Morris Avenue, Union, New Jersey.

20. The Money Store/Michigan Inc. is a Michigan corporation, with its principal place of business at 16801 Newburgh Road, Suite 103, Livonia, Michigan.

21. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents, and the proceeding is in the public interest.

ORDER I.

It is ordered, That respondents The Money Store Inc., The Money Store, The Money Store/California Inc., The Money Store/Connecticut Inc., The Money Store/D.C. Inc., The Money Store/Delaware Inc., The Money Store/Empire State Inc., The Money Store Financial Co. Inc., The Money Store/Georgia Inc., The Money Store Home Equity Corp., The Money Store/Kentucky Inc., The Money Store/Maine Inc., The Money Store/Maryland Inc., The Money Store/Massachusetts Inc., The Money Store/New Hampshire Inc., The Money Store/North Carolina Inc., The Money Store/Rhode Island Inc., The Money Store/Vermont Inc., M Mortgage Inc., and The Money Store/Michigan Inc., their successors and assigns, and their officers, agents, subsidiaries, representatives and employees, directly or through any corporation, subsidiary, division or other device, in connection with the extension of credit to any consumer primarily for personal, family or household purposes (hereinafter THE MONEY STORE, INC., ET AL. lil 104 Decision and Order referred to as consumers 1 3 1 1 5 1027 629 156 42 95.836784 credit), which credit is subject to a finance charge or payable by written agreement in more than four installments, do forthwith cease and desist from failing to disclose clearly, conspicuously and accurately the dollar amount the credit will cost the consumer and the cost of credit expressed as a yearly rate as required by Section 128(a)(3)-(4) of the Truth in Lending Act, 15 U.S.C. 1638(a)(3)-(4), and Sections 226.18(d)-(e) and 226.22 of Regulation Z, 12 CFR 226.18(d)-(e) and 226.22, and from failing to use the term finances 1 3 1 9 5 955 1094 145 45 87.367104 charge to describe the dollar amount the credit will cost and the term annual5 1 3 1 10 7 1122 1157 209 40 96.816978 percentages 1 3 1 10 8 1343 1151 88 35 92.111946 rate to describe the cost of credit expressed as a yearly rate, as required by Section 128(a)(3)-(4) of the Truth in Lending Act, 15 U.S.C. 1638(a)(3)-(4), and Section 226.18(d)-(e) of Regulation Z, 12 CFR 226.18(d)-(e). II.

It is further ordered, That respondents, their successors and assigns, and their officers, agents, subsidiaries, representatives and employees, in connection with the extension of consumer credit, which credit is subject to a finance charge or payable by written agreement in more than four installments, do forthwith cease and desist from failing to disclose clearly, conspicuously and accurately the number, amounts, and timing of payments scheduled to repay the obligation, as required by Section 128(a)(6) of the Truth in Lending Act, 15 U.S.C. 1638(a)(6), and Section 226.18(g) of Regulation Z, 12 CFR 226.18(g).

I.

It is further ordered, That respondents, their successors and assigns, and their officers, agents, subsidiaries, representatives and employees, in connection with the extension of consumer credit, which credit is subject to a finance charge or payable by written agreement in more than four installments, do forthwith cease and desist from failing to make all disclosures in accordance with Section 128 of the Truth in Lending Act, 15 U.S.C. 1638, and Sections 226.17 and 226.18 of Regulation Z, 12 CFR 226.17 and 226.18. Decision and Order 115 F.T.C.

IV.

It is further ordered, That as used in this order 365/3605 1 4 1 1 12 1838 747 162 35 96.181778 method refers to amortization of a credit extension by applying 1/360th of the annual rate of interest to the balance of the credit extension during each of the calendar days of the year, 360/3605 1 4 1 4 10 1650 920 163 35 96.562599 method refers to amortization of a credit extension assuming 12 equal months of 30 days and applying 1/360th of the annual interest rate to each of those days, and 365/3655 1 4 1 7 4 1101 1094 164 34 95.932640 method refers to amortization of a credit extension by applying 1/365th of the annual rate of interest to the balance of the credit extension during each of the calendar days of the year.

V.

It is further ordered, That, within thirty days of the date of service of this order, respondents and their successors and assigns shall make adjustments for each of their customers who received an extension of consumer credit that was amortized for at least some period of time using the 365/360 method, that was not extinguished before February 20, 1990, and on which disclosures of finance charges did not take into account the effect that the use of the 365/360 method would have in increasing the finance charges. The total adjustments for all these customers shall be $1,112,000, and the adjustment for each customer shall be in the same proportion to the total adjustment of $1,112,000 as the number calculated for each such customer, based on Appendix A's formula, is to the sum of the numbers calculated for all such customers, based on Appendix A's formula. VI.

It is further ordered, That respondents, their successors and assigns, and their officers, agents, subsidiaries, representatives and employees, do forthwith cease and desist from using the 365/360 method to amortize the extensions of consumer credit in which disclosures of finance charges were made that did not take into account the effect that the use of the 365/360 method would have in increasing the finance charges, and that respondents, their successors THE MONEY STORE, INC., ET AL. 113 104 Decision and Order and assigns, and their officers, agents, subsidiaries, representatives and employees, shall use in place of the 365/360 method in amortizing those extensions of consumer credit either the 360/360 method or the 365/365 method.

VII.

It is further ordered, That respondents and their successors and assigns shall make adjustments pursuant to this order by mailing a check in the amount of the adjustment due to the current or last known address of each customer who is to receive an adjustment under paragraph V unless the customer is delinquent in his or her loan payments. If the customer is delinquent, the amount of the adjustment shall be credited to the customer's account. For purposes of this order, respondents shall not be required to make adjustments where the amount of the adjustment is less than one dollar. The checks mailed to customers shall be accompanied by one of two letters. If the credit extension to the customer has not expired, the following letter shall be used:

Dear Customer:

We have enclosed a check for you because you may have been charged more interest on your loan with The Money Store than you were told. The Money Store has voluntarily agreed to an order by the Federal Trade Commission that requires the enclosed amount be sent to you. This check is yours to keep and use as you desire. You may wish to use the enclosed amount to reduce the balance of your loan. If you wish to use the check to reduce your loan balance, please endorse the check, write above your endorsement Pays 1 7 1 7 5 1003 2152 28 23 97.013100 to5 1 7 1 7 6 1043 2147 46 28 96.983620 thes 1 7 1 7 7 1100 2147 81 28 96.409401 orders 1 7 1 7 8 1192 2146 34 29 96.604202 of5 1 7 1 7 9 1233 2147 60 28 96.604202 Thes 1 7 1 7 10 1304 2147 109 35 96.903465 Moneys 1 7 1 7 11 1426 2146 104 33 68.347321 Store”,5 1 7 1 7 12 1543 2146 54 28 96.854218 ands 1 7 1 7 13 1608 2151 91 23 96.916489 returns 1 7 1 7 14 1711 2146 47 27 96.466606 thes 1 7 1 7 15 1770 2145 91 28 96.579849 check4 1 7 1 8 0 524 2193 1086 37 -1 5 1 7 1 8 1 524 2199 29 24 96.976555 to5 1 7 1 8 2 565 2195 46 28 96.584579 thes 1 7 1 8 3 624 2194 116 28 96.270935 address5 1 7 1 8 4 754 2194 89 28 96.960457 stated5 1 7 1 8 5 855 2194 94 28 96.884361 below5 1 7 1 8 6 961 2193 86 37 96.635780 along5 1 7 1 8 7 1060 2193 67 28 96.598091 with5 1 7 1 8 8 1140 2202 71 28 96.956650 yours 1 7 1 8 9 1222 2198 66 23 96.271690 next5 1 7 1 8 10 1300 2193 155 28 96.220703 scheduled5 1 7 1 8 11 1468 2197 142 33 96.684509 payment.3 1 7 2 0 0 929 2239 526 35 -1 4 1 7 2 1 0 929 2239 526 35 -1 5 1 7 2 1 1 929 2240 189 34 66.709076 [ADDRESS5 1 7 2 1 2 1131 2239 50 29 96.835381 TO5 1 7 2 1 3 1194 2240 49 28 94.661621 BE5 1 7 2 1 4 1255 2239 200 34 94.661621 INSERTED]3 1 7 3 0 0 524 2284 1336 87 -1 4 1 7 3 1 0 598 2284 1262 39 -1 5 1 7 3 1 1 598 2287 28 28 97.011620 If5 1 7 3 1 2 634 2295 57 28 96.944168 you5 1 7 3 1 3 703 2287 37 28 96.947350 do5 1 7 3 1 4 752 2292 48 23 97.002167 not5 1 7 3 1 5 812 2286 72 29 96.929504 wish5 1 7 3 1 6 895 2292 28 23 97.001396 to5 1 7 3 1 7 934 2295 51 19 96.464729 uses 1 7 3 1 8 997 2286 45 28 96.464729 thes 1 7 3 1 9 1053 2286 90 28 96.371689 checks 1 7 3 1 10 1155 2291 29 23 96.597153 to5 1 7 3 1 11 1195 2286 104 28 96.279793 reduces 1 7 3 1 12 1311 2294 71 29 96.947968 yours 1 7 3 1 13 1394 2286 65 28 96.602745 loans 1 7 3 1 14 1471 2286 128 32 96.501656 balance,5 1 7 3 1 15 1612 2294 56 27 96.560272 you5 1 7 3 1 16 1681 2294 66 27 96.866013 may5 1 7 3 1 17 1759 2285 69 28 96.759827 cash5 1 7 3 1 18 1840 2284 20 29 96.819054 it4 1 7 3 2 0 524 2333 480 38 -1 5 1 7 3 2 1 524 2343 30 19 96.018845 as5 1 7 3 2 2 567 2342 56 29 96.018845 you5 1 7 3 2 3 637 2334 97 28 96.912758 would5 1 7 3 2 4 746 2342 54 28 96.451439 any5 1 7 3 2 5 814 2334 80 28 96.706947 others 1 7 3 2 6 904 2333 100 28 96.967918 check.3 1 7 4 0 0 523 2378 1336 130 -1 4 1 7 4 1 0 598 2378 1261 39 -1 5 1 7 4 1 1 598 2380 28 29 96.783966 If5 1 7 4 1 2 637 2389 58 28 96.807785 you5 1 7 4 1 3 711 2380 104 29 96.689232 should5 1 7 4 1 4 829 2380 73 28 96.591499 have5 1 7 4 1 5 916 2388 55 28 96.591499 any5 1 7 4 1 6 985 2379 147 37 96.571342 questions5 1 7 4 1 7 1147 2379 86 28 96.754967 about5 1 7 4 1 8 1246 2379 55 28 96.973488 this5 1 7 4 1 9 1316 2379 88 33 96.972992 letter,5 1 7 4 1 10 1418 2379 97 37 96.842270 please5 1 7 4 1 11 1529 2378 54 29 96.748528 calls 1 7 4 1 12 1600 2378 127 35 95.303848 [NAMES 1 7 4 1 13 1741 2378 50 29 95.303848 OF5 1 7 4 1 14 1805 2378 54 28 96.939362 AN4 1 7 4 2 0 524 2424 1335 37 -1 5 1 7 4 2 1 524 2427 210 28 96.617203 EMPLOYEES 1 7 4 2 2 745 2427 50 28 96.877022 OF5 1 7 4 2 3 805 2427 76 28 96.311348 THES 1 7 4 2 4 893 2426 143 29 96.720726 MONEYS 1 7 4 2 5 1049 2426 123 29 96.199646 STORES 1 7 4 2 6 1184 2425 74 30 95.753906 INC.5 1 7 4 2 7 1271 2426 51 29 95.726761 TO5 1 7 4 2 8 1335 2426 49 28 95.139244 BE5 1 7 4 2 9 1395 2425 200 34 73.435913 INSERTED]5 1 7 4 2 10 1610 2430 27 23 95.587578 at5 1 7 4 2 11 1648 2425 47 28 96.850220 thes 1 7 4 2 12 1707 2424 152 37 96.505836 following4 1 7 4 3 0 523 2471 1282 37 -1 5 1 7 4 3 1 523 2474 51 28 96.197632 toll5 1 7 4 3 2 587 2474 60 28 95.513474 free5 1 7 4 3 3 659 2474 128 28 96.594177 number:5 1 7 4 3 4 803 2473 178 34 91.264206 [NUMBERS 1 7 4 3 5 993 2473 51 28 96.408577 TO5 1 7 4 3 6 1056 2473 49 27 96.408577 BE5 1 7 4 3 7 1117 2473 211 33 86.842514 INSERTED].5 1 7 4 3 8 1341 2473 99 27 96.585838 Thanks 1 7 4 3 9 1452 2480 56 28 96.791534 you5 1 7 4 3 10 1521 2472 45 28 96.242180 for5 1 7 4 3 11 1578 2480 71 28 96.371140 yours 1 7 4 3 12 1660 2471 145 28 96.371140 attention.2 1 8 0 0 0 1118 2566 276 82 -1 3 1 8 1 0 0 1118 2566 276 82 -1 4 1 8 1 1 0 1119 2566 268 35 -1 5 1 8 1 1 1 1119 2566 76 35 96.880875 Very5 1 8 1 1 2 1207 2566 73 35 96.426025 truly5 1 8 1 1 3 1293 2573 94 28 96.676933 yours,4 1 8 1 2 0 1118 2611 276 37 -1 5 1 8 1 2 1 1118 2612 60 28 96.750031 Thes 1 8 1 2 2 1189 2612 110 36 96.487068 Moneys 1 8 1 2 3 1312 2611 82 29 96.838287 Store Decision and Order 115 F.T.C.

If the credit extension to the customer has expired, the following letter shall be used:

Dear Former Customer:

We have enclosed a check for you because you may have been charged more interest on your past loan with The Money Store than you were told. The Money Store has voluntarily agreed to an order by the Federal Trade Commission that requires the enclosed amount be sent to you. This check is yours to keep and use as you desire. If you should have any questions about this letter, please call [NAME OF AN EMPLOYEE OF THE MONEY STORE INC. TO BE INSERTED] at the following toll free number: [NUMBER TO BE INSERTED]. Thank you for your attention. Very truly yours, The Money Store In the case of customers who are delinquent in their loan payments and whose adjustments are made by account credits, the following letter shall be mailed to the customer at the time the adjustment is made along with a receipt indicating the customer's name, loan or account number, and the amount of the adjustment credited to the customer's account:

Dear Customer:

We have enclosed a receipt stating an amount that has been credited to your loan account with The Money Store because you may have been charged more interest on your Joan than you were told. The Money Store has voluntarily agreed to an order by the Federal Trade Commission that required this credit be made; this has reduced the amount you owe on your loan.

If you should have any questions about this letter, please call [NAME OF AN EMPLOYEE OF THE MONEY STORE INC. TO BE INSERTED] at the following toll free number: [NUMBER TO BE INSERTED]. Thank you for your attention. Very truly yours, The Money Store Each envelope containing a letter to a customer pursuant to this paragraph shall bear the following legend in red, 14 point print on its face.) IMPORTANT NOTICE OF INTEREST REFUND ENCLOSED.

THE MONEY STORE, INC., ET AL. 115 104 Decision and Order VU.

It is further ordered, That, to the extent checks mailed under this order are returned as undeliverable or are not cashed within one hundred and forty days of the date of service of this order, respondents and their successors and assigns shall make a certified check payable to the Federal Trade Commission for an amount equal to the total of the checks that have been returned as undeliverable and the checks that have not been cashed and shall deliver that certified check to the following person and address within two hundred days of the date of service of this order:

William S. Sanger Associate Director for Enforcement Bureau of Consumer Protection Federal Trade Commission/S-4631 6th and Pennsylvania Ave., N.W.

Washington, D.C. 20580 At the time of delivering the certified check, respondents shall also deliver to the foregoing person a list, in both hard copy and computer readable form, of the names and addresses of each customer whose account was credited under paragraph VII and of each customer to whom the respondents mailed a check under paragraph VII. As to each customer whose account was credited, the list shall indicate the amount of the credit. As to each customer who was mailed a check, the list shall indicate the amount of the check mailed to that customer and whether the check was cashed. Customers who were mailed a check that was not cashed shall be listed separately. The Commission in its sole discretion shall determine whether the amount of money remaining undistributed is sufficient to make practical further distribution of adjustments by the Commission to customers. If the Commission determines, at any time, that further distribution of adjustments is impractical, any remaining undistributed funds shall be sent to the U.S. Treasury.

Decision and Order 115 F.T.C.

IX.

It is further ordered, That respondents, their successors and assigns, and their officers, agents, subsidiaries, representatives and employees, shall maintain and upon request make available to the Federal Trade Commission all records that will demonstrate compliance with the requirements of this order. X.

It is further ordered, That respondents, their successors and assigns, and their officers, agents, subsidiaries, representatives and employees, shall distribute a copy of this order to each of their officers.

XI.

It is further ordered, That respondents and their successors and assigns shall notify the Commission at least thirty days prior to any proposed change such as dissolution, assignment or sale resulting in the emergence of a successor corporation, the creation or dissolution of subsidiaries, or any other changes in respondents, their successors and assigns that may affect compliance obligations arising out of this order.

XII.

It is further ordered, That respondents and their successors and assigns shall, within two hundred days after the date of service of this order, and at such other times as the Federal Trade Commission may by written notice require, file with the Commission a report, in writing, setting forth in detail the manner in which they have complied with this order, including, but not limited to, a full accounting of the customers to whom adjustments have been made and the amounts of such adjustments.

THE MONEY STORE, INC., ET AL. 117 104 Decision and Order APPENDIX A The number calculated for each customer described in paragraph V of the order shall be calculated using the following formula: Number = P x (A +B x C) where A=(1+si)"-(1+I)° B=_(1+D"

(1+I’-1 C=(1+D"-1-[0 +si)"- 1] S I = Annual interest rate on promissory note evidencing credit extension to customer n = Number of payments made by customer through August 1990 P = Beginning principal amount of customer's credit extension s= 365 T = Term of customer's credit extension expressed as a number of months Complaint 115 K.T.C.