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1
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DECISION & ORDER
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EXTRACTED KEY WORDS
RESPONDENTS FEDERAL TRADE COMMISSION FLEET FINANCE INDEPENDENT AGENT REDRESS COMPLAINT UNITED STATES HOME EQUITY ACTS REGULATION REDRESS PAYMENT CREDIT TRANSACTION REDRESS FUND CLAIM FORM DELAWARE ELIGIBLE FORECLOSED CONSUMERS PARAGRAPH RHODE ISLAND PRACTICES THEREAFTER CONSUMER PROTECTION CONSUMER REDRESS REQUIREMENTS TILA ENFORCEMENT DISTRIBUTION FORECLOSURE REDRESS PROGRAM OBLIGATION MATERIAL DISCLOSURES |
9323074
B262004
UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
In the Matter of
FLEET FINANCE, INC.,
HOME EQUITY U.S.A., INC. (Rhode Island), and
HOME EQUITY U.S.A., INC. (Delaware), corporations
DOCKET NO. C-3899
DECISION AND ORDER
The Federal Trade Commission ("the Commission") having initiated an
investigation of certain acts and practices of respondent Fleet
Finance, Inc., incorporated in Delaware ("Fleet Finance") named in the
caption hereof and a predecessor corporation, Fleet Finance, Inc.,
which was incorporated in Rhode Island ("Fleet Finance (RI)") and is
now succeeded by Home Equity U.S.A., Inc. incorporated in Rhode Island
("Home Equity U.S.A. (RI)"), and Home Equity U.S.A., Inc.,
incorporated in Delaware ("Home Equity U.S.A. (DE)"), corporations,
and the respondents having been furnished thereafter with a copy of a
draft complaint that the Bureau of Consumer Protection proposed to
present to the Commission for its consideration and which, if issued
by the Commission, would charge respondent Fleet Finance with
violation of the Truth in Lending Act, 15 U.S.C. § 1601 et seq. and
its implementing Regulation Z, 12 C.F.R. § 226, and the Federal Trade
Commission Act, 15 U.S.C. § 45 et seq.; and
The respondents named in the caption, their attorney, and counsel for
the Commission having thereafter executed an agreement containing a
consent order, an admission by 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, or that the facts as alleged in
such complaint, other than jurisdictional facts, are true 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 has reason to believe that respondent Fleet Finance
has violated the said Acts and Regulation, and that a 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 sixty (60) days, now in further conformity with
the procedure described in § 2.34 of its Rules, the Commission hereby
SNIPPETS:
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2
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COMPLAINT
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EXTRACTED KEY WORDS
RESPONDENT FLEET ACTS TILA CREDIT TRANSACTIONS FLEET FINANCE VIOLATE TILA DISCLOSURES PRACTICES RESCIND FAILURE REGULATION BUSINESS FTC ACT EXTENDING ASSIGNMENTS NUMEROUS OCCASIONS AFORESAID ACTS FEDERAL TRADE COMMISSION PRINCIPAL DWELLING SECURITY DECEPTIVE ACTS FAILING ASSIGNEE LIABILITY PAYMENTS COSTS DISBURSING FUNDS RESCISSION WAIVERS WRITING PERSONAL FINANCIAL EMERGENCY |
9323074
B262004
UNITED STATES OF AMERICA
BEFORE FEDERAL TRADE COMMISSION
In The Matter of
FLEET FINANCE, INC., a corporation.
DOCKET NO. C-3899
COMPLAINT
The Federal Trade Commission, having reason to believe that Fleet
Finance, Inc., incorporated in Delaware ("Fleet Finance"), a
corporation, and a related now-defunct corporation, Fleet Finance,
Inc., which was incorporated in Rhode Island, have violated the
provisions of the Federal Trade Commission Act ("FTC Act"), 15 U.S.C.
§§ 45-58, as amended, the Truth in Lending Act ("TILA"), 15 U.S.C.
1601-1667, as amended, and its implementing Regulation Z, 12 C.F.R.
§ 226, as amended, and it appearing to the Commission that this
proceeding is in the public interest, alleges:
1. Respondent Fleet Finance is a Delaware corporation with its
principal office or place of business at 6 Executive Park Drive,
Atlanta, Georgia 30329.
2. Respondent Fleet Finance has engaged in the business of offering
and extending "consumer credit" to the public and is a "creditor," as
those terms are defined in the TILA and Regulation Z.
3. Respondent Fleet Finance's consumer credit transactions have
included, but not been limited to, those in which Fleet acquires or
retains a security interest in a consumer's principal dwelling.
Respondent Fleet Finance has also purchased through assignments
consumer credit transactions, including but not limited to those in
which Fleet Finance obtained a security interest in the consumer's
principal dwelling.
4. The acts and practices of respondent alleged in this complaint have
been in or affecting commerce, as "commerce" is defined in Section 4
of the FTC Act.
TRUTH IN LENDING ACT and FTC ACT VIOLATIONS
Count I: Failure to Provide the Right to Rescind in Extended
Transactions
SNIPPETS:
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3
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ANALYSIS
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EXTRACTED KEY WORDS
CREDIT TRANSACTIONS FLEET FINANCE TILA REGULATION INDEPENDENT AGENT ACT PROPOSED ORDER VIOLATE COMPLAINT RESCIND REDRESS RESPONDENTS DISCLOSURES PAYMENT ALLEGES PURCHASES AMOUNT PRACTICES FTC ACT LISTS ASSIGNMENTS DOE RESCISSION DECEPTIVE ACTS FUNDS RECEIVING FAILING REDRESS PROGRAM CLAIM FORM |
ANALYSIS OF PROPOSED CONSENT ORDER
TO AID PUBLIC COMMENT
The Federal Trade Commission has accepted an agreement, subject to
final approval, to a proposed consent order from Fleet Finance, Inc.,
Home Equity U.S.A., Inc. (Rhode Island), and Home Equity U.S.A., Inc.
(Delaware) (collectively referred to as "respondents").
The proposed order would settle charges that Fleet Finance, Inc.,
incorporated in Delaware ("Fleet Finance"), and a related, now-defunct
corporation, Fleet Finance, Inc., which was incorporated in Rhode
Island, violated the Truth in Lending Act ("TILA"), and its
implementing Regulation Z, and the Federal Trade Commission Act ("FTC
Act"). The TILA and Regulation Z require creditors to provide
consumers with written disclosures of the costs and terms of consumer
credit transactions and also establish various substantive protections
for consumers, including the right of rescission in certain mortgage
transactions. Section 5 of the FTC Act prohibits, inter alia,
deceptive acts or practices in or affecting commerce.
The proposed 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 or make final the agreement's proposed order.
The complaint alleges that Fleet Finance has extended consumer credit
transactions in which Fleet Finance acquired or retained a security
interest in the consumers' principal dwellings and failed to provide
the consumers with the right to rescind the credit transactions by:
(a) failing to provided consumers with notices of the right to
rescind; (b) waiving consumers' right to rescind, and disbursing
funds, pursuant to rescission waivers that were insufficient; and (c)
failing to take actions terminating the security interest and
returning any money and property given by the consumers when consumers
exercise their right to rescind. According to the complaint, these
practices violate Sections 125(a), (b) and (d) of the TILA, 15 U.S.C.
§§ 1635(a), (b), and (d); and Sections 226.23(a), (b), (c), (d) and
(e) of Regulation Z, 12 C.F.R. §§ 226.23(a), (b), (c), (d) and (e);
and constitute deceptive acts or practices in violation of Section
5(a) of the FTC Act, 15 U.S.C. § 45(a). The complaint also alleges
that Fleet Finance purchased consumer loan transactions through
assignments in which Fleet Finance acquired or retained security
interests in the consumers' principal dwellings that failed in these
same ways to provide the consumers with the right to rescind the
credit transactions. The complaint alleges that, based on Fleet
Finance's assignee liability in Section 131 of the TILA, 15 U.S.C.
SNIPPETS:
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4
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AGREEMENT CONTAINING CONSENT
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EXTRACTED KEY WORDS
FEDERAL TRADE COMMISSION FLEET FINANCE CONSUMER PROPOSED RESPONDENTS COMPLAINT INDEPENDENT AGENT HOME EQUITY REDRESS UNITED STATES AGREEMENT REDRESS PAYMENT REGULATION ACTS CREDIT TRANSACTION DRAFT COMPLAINT REDRESS FUND CLAIM FORM PRACTICES ELIGIBLE FORECLOSED CONSUMERS PARAGRAPH CONSUMER REDRESS REQUIREMENTS RHODE ISLAND CONSENT ORDER REPRESENTATIVES TILA ENFORCEMENT DULY AUTHORIZED OFFICERS DISTRIBUTION REDRESS PROGRAM |
UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
In the Matter of
FLEET FINANCE, INC.,
HOME EQUITY U.S.A., INC. (Rhode Island), and
HOME EQUITY U.S.A., INC. (Delaware), corporations
FILE NO. 9323074
AGREEMENT CONTAINING CONSENT ORDER
The Federal Trade Commission ("Commission") has conducted an
investigation of certain acts and practices of Fleet Finance, Inc.,
incorporated in Delaware ("Fleet Finance"), and a predecessor
corporation, Fleet Finance, Inc., which was incorporated in Rhode
Island ("Fleet Finance (RI)") and is now succeeded by Home Equity
U.S.A., Inc., incorporated in Rhode Island ("Home Equity U.S.A.
(RI)"), and Home Equity U.S.A., Inc., incorporated in Delaware ("Home
Equity U.S.A. (DE)"), corporations ("proposed respondents"). Proposed
respondents, having been represented by counsel, are willing to enter
into an agreement containing a consent order resolving the allegations
contained in the attached draft complaint. Therefore,
IT IS HEREBY AGREED by and between Fleet Finance, Home Equity U.S.A.
(RI), and Home Equity U.S.A. (DE) by their duly authorized officers,
and counsel for the Federal Trade Commission that:
1.a. Proposed respondent Fleet Finance is a Delaware corporation with
its principal office or place of business at 6 Executive Park Drive,
Atlanta, Georgia 30329.
1.b. Proposed respondent Home Equity U.S.A. (RI) is a Rhode Island
corporation with its principal office or place of business at 6
Executive Park Drive, Atlanta, Georgia 30329.
1.c. Proposed respondent Home Equity U.S.A. (DE) is a Delaware
corporation with its principal office or place of business at 6
Executive Park Drive, Atlanta, Georgia 30329.
2. Proposed respondents admit all the jurisdictional facts set forth
in the draft complaint.
3. Proposed respondents waive:
a. Any further procedural steps;
b. The requirement that the Commission's decision contain a
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