Cars: $7, $10, $13 per $100. Other goods and serv- 5% or $2.50 $9, $13, $15 per $100 5% or $5 14% per mo. on declining balance; 1% per mo.; 5% or $5 $7, $11, $13 per $100 All goods with cash Cars: $9, $12, $15 per $100. All goods conditionally Cars: $8, $10, $12 per $100 Motor vehicles only $6, $9, $12 per $100 Motor vehicles only $8, $11, $13 per 100 Motor vehicles with cash $7, $10, $13, $15 per $100 price up to $7,500. All retail installment sales of goods and services All personal property; revolving charge counts ac Cars: $7, $9, $11 per $100 Other goods: $11/100 on 1st $300; $9/100 on next $700; $7/100 on excess. Cars: $8, $10, $13, $15 per $100. Other goods: up to $300, $12/100; $10/100 on next $5 fee plus 1% per Limited to maximum 4 1% of unpaid balance times no. of months of contract | No provision Cars: $7, $10, $13 per $100. Other goods: $10 per 5% or $5 $100. Home repairs: $7 per $100 Cars: $8, $10, $12, $14 per $100 5% or $5 Cars: $7, $10, $13 per $100. Other goods: $10/100 5% or $5 up to $500; $8/100 on balances $500 and over. Revolving credit: 12% per month up to $500; 1% on excess. Cars: $7, $10, $13 per $100. Other goods: $10/100. 5% or $5 Revolving credit: 12% per month $8/100 plus 50¢ per mo.on first $50, plus 25¢ per 5% or $3 mo. on next five $50 units. Revolving credit: 1% per mo. plus 50¢ on first four $50 units and 25¢ on next six $50 units $8, $10, $12 per $100 Motor vehicles only 6%; 9%; 12% Motor vehicles only Motor vehicles only 14% per month on declining balance; 12% per mo.; 5% or $5 24% per mo. 1% of unpaid balance times no. of months of contract $7, $9, $12, $15 per $100 No provision 1% for each 10 day 10% per year delinquency up to maximum of 5% NOTE: Under most laws, finance rates on cars increase with the age of car. Where 3 rates are shown, they are for cars (1) new (2) up to 2 or 3 years old (3) more than 2 or 3 years old. Four rates mean cars (1) new (2) up to 2 years old (3) up to 4 or 5 years old (4) more than 4 or 5 years old. Sources: American Finance Conference, Time Sales Financing, September 1959 and National Consumer Finance Association, Consumer Finance Law Bulletin. Senator DOUGLAS. We have a statement from the AFL-CIO auxiliaries which, without objection will go in the record at this point. (The statement referred to follows:) STATEMENT OF AFL-CIO AUXILIARIES, MRS. WINNIE CHRISTMAS, CHAIRMAN, LEGISLATIVE COMMITTEE The American Federation of Women s Auxiliaries of Labor and the Congress of Industrial Organizations Auxiliaries (AFL-CIO Auxiliaries) has a membership of approximately 35,000. The organization was chartered in 1961 by the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO). The primary objectives and goals of the AFL-CIO Auxiliaries are to embrace the basic philosophy of the American labor movement. We, too, believe that human values should transcend all material values, and that the dignity and worth of the individual should be respected for his contribution to our democratic society, where social and economic justice can be translated into progress for the welfare of all. The practical side of this basic concept is of course to create a climate wherein this idealism can take roots and flourish. We therefore concern ourselves with the living standards, working conditions, educational opportunities, etc., through supporting and promoting social and economic legislation. We are here vitally concerned with Senate bill 1740. It is toward that end that this brief statement is directed: After extensive hearings on the Douglas "finance charge disclosure" bill during the last session of the 86th Congress the necessity for enacting a measure of this nature became apparent. It was established that the general economy is adversely affected when credit is exntended to the point of almost complete saturation of the incomes of a large segment of our population. This distressing situation can be traced in all too many instances to existing credit practices. With interest rates ranging from 12 percent up to as high as 100 percent on installments, contracts, and loans, the uninformed consumer is not aware of the hidden charges in his credit transactions and consequently overborrows and finds himself in an entanglement of debt-unable to extricate himself. Consumer credit has increased from $6 billion in 1945 to $56 billion in 1960. The general economy is benefited only to the extent that the $56 billion is expended for the purchasing of commodities and services, and to that extent employment is stimulated and economic stability effectuated. However, the hidden charges embodied in the total sum of the credit extended subtracts from the total value of the loan in terms of purchasing power, and consequently loses much of its economic effectiveness. We know it is not the purpose of the bill to eliminate personal and consumer credit. Certainly, economic growth and the Nation's prosperity depends on the availability of credit. We are of the opinion that a revelation of all credit charges made mandatory would create competition in the consumer credit market, and consequently establish a higher degree of stability in the overall economy. The following resolution was passed in March 1960 by the executive council of the AFL-CIO Auxiliaries, relative to Douglas bill S. 2755: Whereas members of auxiliaries to labor have over a long period of time been vitally concerned with matters pertaining to consumer problems; and Whereas the matters of installment credit presents a very difficult and perplexing problem in that the purchaser of commodities and services is aware in many instances of the annual interest rate, nor the many fees included in the credit he is seeking; and Whereas excessive charges for the use of money is detrimental to the national economy as well as being morally wrong in that it creates hardships and reduces living standards which very often are in the first instance too low; and Whereas in order that consumers may understand the nature of the contract relative to the credit transaction, Senator Paul Douglas has introduced a consumer credit labeling bill, S. 2755, which proposes a complete disclosure of all financial charges included in the loan: Be it Resolved, That the executive council of the AFL-CIO Auxiliaries meeting in executive session go on record in support of the Douglas consumer labeling bill; and further Resolved, That a copy of this resolution be sent to Senator Douglas, and that our membership be alerted to urge Congress to consider favorably the provisions embodied in this bill. We feel this statement and resolution expresses the interest and concern of the AFL-CIO Auxiliaries in the present "truth in lending bill." It is our opinion that the public interest will be served by the enactment of this bill. We respectfully urge this committee to give it favorable consideration. Senator DOUGLAS. The next witnesses represent the Credit Union National Association. The gentlemen who will make statements are Mr. Julius Stone, chairman of the legal and legislative committee of the Credit Union National Association; Mr. R. C. Morgan, president of CUNA, and treasurer-manager of the Government Employees Credit Union in El Paso, Tex.; Mr. James W. Grant, a member of CUNA's national board of directors and manager and assistant treasurer of the Department of Justice Federal Employees Credit Union here in Washington; and Lt. Col. Willard J. Hagan, treasurer-manager of the Andrews Air Force Base Credit Union in Maryland. The witnesses are accompanied by the director of CUNA's legal and legislative department, Mr. David R. Weinberg; the assistant managing director of the association, Mr. J. Orrin Shipe; and the legislative representative of CUNA's Washington office, Mr. Abraham A. Dash. Gentlemen, we are very glad to have you. Are you all here? Senator BUSH. I am sure Senator Bennett would like to be here for the credit union testimony. Don't you think we could go over to this afternoon before they start? Senator DOUGLAS. These gentlemen have appointments. We have a crowded docket. We have the American Bankers Association, the Maine Merchants Association, and others. Senator BUSH. All today? Senator DOUGLAS. Our docket is getting very crowded. STATEMENTS OF JULIUS STONE, CHAIRMAN, LEGAL AND LEGISLA- Mr. STONE. Mr. Chairman, members of the committee, my name is Julius Stone. I am chairman of the legal and legislative committee and immediate past president of the Credit Union National Association, a nonprofit association of State credit union leagues, representing 18,000 affiliated credit unions throughout the United States comprising approximately 11 million saving and borrowing members. We come before this committee today to testify in support of S. 1740, the truth in lending bill. I am accompanied by Mr. R. C. Morgan, president of the Credit Union National Association; Mr. James Grant, manager and assistant treasurer of the Department of Justice Federal Credit Union; Lt. Col. Willard J. Hagan, the treasurer-manager of the Andrews Air Force Base Credit Union, who will make the presentation for Colonel Calhan |