About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

1 Richard Higgins, Credit Practices Rule 1 (1983)

handle is hein.usfed/crdpcrle0001 and id is 1 raw text is: UNITED STATES GOVERNMENT O.T.: April 5,1983 memorandum Sor: Richard Higgins, Deputy Director, BE sumXICr: Credit Practices Rule TO: Commission Recommendation: I recommend that the proposed rule be rejected. Based on my evaluation of a highly relevant part of the record and my assessment of BE staff's evaluation of the record, I think it is more likely than not that consumer welfare would be lowered by restricting the group of creditor remedies according to the proposed rule. Although I think a similar statement is appropriate for each of the restrictions taken singly, the shortcomings of the record make statements about individual restrictions much more imprecise than conclusions about joint restrictions. Detailed discussion by BE staff and BCP of the welfare effects of the individual restrictions indicates that unsystematic problems of deception may exist in the disposition of collateral, specifically, the disposition of repossessed autos. Thus, it seems, a concerted case-by-case enforcement effort in this area might be justified. Summary: The analysis of the record evidence, excluding the econometric study by James Barth and Anthony Yezer, l/ by BE staff and the BCP Director casts considerable doubt on the efficiency of the proposed Credit Practices Rule. 2/ Thus the welfare implications of the Barth-Yezer (hereafter B-Y) analysis are critical in deciding whether the rule should be promulgated. On the basis of the B-Y econometrics alone I conclude that the proposed rule would on balance harm consumers. Combining the B-Y evidence with the other available evidence yields strong support for Mr. Muris' recommendation. 1/ Barth and Yezer, The Economic Impact of the FTC Proposals for Credit Contract Regulation on the Cost and Availability of Consumer Credit, 1977, R-XI-161, and Barth and Yezer, The Economic Impact of the FTC Proposals for Credit Contract Regulation on the Cost and Availability of Consumer Credit: Rebuttal Evidence, April 1978, R-XIII-39. 2/ BE staff's a priori provision-by-provision analysis of the proposed rule suggests that at least a few of the proposed restrictions have the potential for increasing consumer welfare. The efficiency of the proposed rule depends on questions of fact, not speculation, however. Buy U.S. Savings Bonds Regularly on the Payroll Savings Plan

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most