[Federal Register Volume 73, Number 44 (Wednesday, March 5, 2008)]
[Notices]
[Pages 11923-11924]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-4302]


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FEDERAL TRADE COMMISSION

[File No. 072 3203]


Cash Pro d/b/a MakePaydayToday.com; Analysis of Proposed Consent 
Order 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 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 March 31, 2008

ADDRESSES: Interested parties are invited to submit written comments. 
Comments should refer to ``Cash Pro, File No. 072 3203,'' 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 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 http://secure.commentworks.com/ftc-CashPro. To ensure that the Commission 
considers an electronic comment, you must file it on that web-based 
form.
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    \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).
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    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 http://www.ftc.gov/ftc/privacy.htm.

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 February 27, 2008), on the World Wide Web, at http://www.ftc.gov/os/2008/02/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 CashPro d/b/a 
MakePaydayToday.com (``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 
its advertised payday loans undermined consumers' ability to compare 
these loans to those offered by other payday lenders. The respondent's 
failure to disclose the APR for its advertised payday loans 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.

[[Page 11924]]

    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 the agreement and proposed order or to modify in any 
way their terms.
    By direction of the Commission.

Donald S. Clark,
Secretary.
[FR Doc. E8-4302 Filed 3-4-08: 8:45 am]
BILLING CODE 6750-01-S