[Federal Register Volume 63, Number 163 (Monday, August 24, 1998)]
[Notices]
[Pages 45062-45063]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-22640]
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FEDERAL TRADE COMMISSION
[File No. 972-3188]
Montgomery Ward Credit Corporation, et al.; Analysis to Aid
Public Comment
AGENCY: Federal Trade Commission.
ACTION: Proposed Consent Agreement.
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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 that accompanies the consent agreement 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 October 23, 1998.
ADDRESSES: Comments should be directed to: FTC/Office of the Secretary,
Room 159, 6th St. and Pa. Ave., NW, Washington, DC 20580.
FOR FURTHER INFORMATION CONTACT:
Russell Damtoft, Federal Trade Commission, Chicago Regional Office, 55
E. Monroe Street, Suite 1860, Chicago, IL 60603-5701. (312) 960-5634.
SUPPLEMENTARY INFORMATION: Pursuant to Section 6(f) of the Federal
Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46 and Section 2.34 of
the Commission's 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 sixty (60) 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 August 7, 1998), on the world Wide Web, at ``http://www.ftc.gov/
os/actions97.htm.'' A paper copy can be obtained from the FTC Public
Reference Room, Room H-130, Sixth Street and Pennsylvania Avenue, NW,
Washington, DC 20580, either in person or by calling (202) 326-3627.
Public comment is invited. Such comments or views will be considered by
the Commission and will be available for inspection and copying at its
principal office in accordance with Section 4.9(b)(6)(ii) of the
Commission's Rules of Practice (16 CFR 4.9(b)(6)(ii)).
Analysis of Proposed Consent Order to Aid Public Comment
The Federal Trade Commission has accepted an agreement to a
proposed consent order from Montgomery Ward Credit Corporation and
General Electric Capital Corporation. The proposed respondent
Montgomery Ward Credit Corporation is a wholly owned subsidiary of
General Electric Capital Corporation that provides credit card services
for Montgomery Ward & Co., Inc., a large retailer. The proposed
respondent General Electric Credit Corporation provides credit card
services for a number of other businesses including several large
retailers.
The proposed consent order has been placed on the public record for
sixty (60) days for reception of comments by interested persons.
Comments received during this period will become part of the public
record. After sixty (60) days, the Commission will again review the
agreement and the comments received and will decide whether it should
withdraw from the agreement and take other appropriate action or make
final the agreement's proposed order.
The Commission's complaint alleges several unfair or deceptive acts
or practices related to the proposed respondent's policy of inducing
consumers who have filed for bankruptcy protection to sign agreements
reaffirming debts owed to proposed respondent prior to the filing of
the bankruptcy petition. The complaint charges that the proposed
[[Page 45063]]
respondent: falsely represented to consumers that signed reaffirmation
agreements would be filed with the bankruptcy courts, as required by
the United States Bankruptcy Code; falsely represented to consumers
that debts associated with unfiled reaffirmation agreements, or
agreements that were filed but not approved by the bankruptcy courts,
were legally binding on the consumers; and unfairly collected debts
that it was not permitted by law to collect. The proposed consent order
contains provisions designed to remedy the violations charged and to
prevent the proposed respondent from engaging in similar acts in the
future.
The proposed consent order preserves the Commission's right to seek
consumer redress if the Commission determines that redress to consumers
provided through related named and unnamed legal actions is not
adequate.
Part I of the proposed order prohibits the proposed respondent from
misrepresenting to consumers who have filed petitions for bankruptcy
protection under the United States Bankruptcy Code that (A)
reaffirmation agreements will be filed in bankruptcy court; or (B) any
reaffirmation agreement is legally binding on the consumer. Part I.C of
the proposed order prohibits the proposed respondent from collecting
any debt (including any interest, fee, charge, or expense incidental to
the principal obligation) that has been legally discharged in
bankruptcy proceedings and that the proposed respondent is not
permitted by law to collect. Part II of the proposed order prohibits
the proposed respondent from making any misrepresentation in the
collection of any debt subject to a pending bankruptcy proceeding.
Part III of the proposed order contains record keeping requirements
for materials that demonstrate the compliance of the proposed
respondent with the proposed order. Part IV requires distribution of a
copy of the consent decree to certain current and future personnel who
have responsibilities related to collecting debts subject to bankruptcy
proceedings.
Part V provides for Commission notification upon any change in the
corporate respondent affecting compliance obligations arising under the
order. Part VI requires the proposed respondent to notify the
Commission of proposed settlement terms in related actions filed by
various named and unnamed parties. Part VII requires the filing of
compliance report(s). Finally, Part VIII provides for the termination
of the order after twenty years under certain circumstances.
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.
Donald S. Clark,
Secretary.
[FR Doc. 98-22640 Filed 8-21-98; 8:45 am]
BILLING CODE 6750-01-M
