UNITED STATES OF AMERICA
BEFORE FEDERAL TRADE COMMISSION

In The Matter of
FLEET FINANCE, INC., a corporation.

DOCKET NO.

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

5. Respondent Fleet Finance, in the course and conduct of its business, has, on numerous occasions, extended consumer credit transactions in which Fleet Finance acquired or retained a security interest in the consumers' principal dwellings and failed to provide these consumers with the right to rescind the credit transactions by:

(a) failing to provide consumers with notices of the right to rescind;

(b) waiving consumers' right to rescind, and disbursing funds, pursuant to rescission waivers that: (i) failed to describe, in writing, a bona fide personal financial emergency of the consumers; (ii) failed to modify or waive consumers' right to rescind in writing; and/or (iii) involved verbal waivers; and

(c) failing to take actions terminating the security interest and returning any money and property given by consumers in connection with the credit transactions when consumers exercise their right to rescind.

6. Respondent Fleet Finance's aforesaid acts and 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).

Count II: Failure to Provide the Right to Rescind in Purchased Transactions

7. Respondent Fleet Finance, in the course and conduct of its business, has, on numerous occasions, purchased consumer credit transactions through assignments in which Fleet Finance acquired or retained security interests in the consumers' principal dwellings that failed to provide these consumers with the right to rescind the credit transactions by:

(a) failing to provide consumers with notices of the right to rescind;

(b) failing to permit consumers the right to rescind the credit transaction until, and disbursing funds before, midnight of the third business day following the later of consummation, delivery of the rescission notice or delivery of all material disclosures;

(c) waiving consumers' right to rescind the credit transactions, and disbursing funds, pursuant to rescission waivers that failed to describe, in writing, a bona fide personal financial emergency of the consumers; and/or

(d) including requirements that consumers pay certain costs and release fees if the consumers choose to exercise their right to rescind.

8. Respondent Fleet Finance's aforesaid acts and practices, based on its assignee liability in Section 131 of the TILA, 15 U.S.C.  1641, 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).

Count III: Failure to Provide TILA Disclosures and/or Failure to Provide Timely TILA Disclosures in Extended Transactions

9. Respondent Fleet Finance, in the course and conduct of its business, has, on numerous occasions, extended consumer credit transactions and failed to provide consumers with all TILA disclosures of the costs and terms of credit and/or to provide all TILA disclosures prior to consummation of credit transactions.

10. Respondent Fleet Finance's aforesaid acts and practices violate Sections 121 and 128 of the TILA, 15 U.S.C.  1631 and 1638, and Sections 226.17 and 226.18 of Regulation Z, 12 C.F.R.  226.17 and 226.18 of Regulation Z, 12 C.F.R.  226.17 and 226.18, and constitute deceptive acts or practices in violation of Section 5(a) of the FTC Act, 15 U.S.C. 45(a).

Count IV: Failure to Provide TILA Disclosures and/or Failure to Provide Timely TILA Disclosures in Purchased Transactions

11. Respondent Fleet Finance, in the course and conduct of its business, has, on numerous occasions, purchased consumer credit transactions through assignments that failed to provide consumers with all TILA disclosures of the costs and terms of credit and/or that failed to provide all TILA disclosures prior to consummation of credit transactions.

12. Respondent Fleet Finance's aforesaid acts and practices, based on its assignee liability in Section 131 of the TILA, 15 U.S.C.  1641, violate Sections 121 and 128 of the TILA, 15 U.S.C.  1631 and 1638, and Sections 226.17 and 226.18 of Regulation Z, 12 C.F.R.  226.17 and 226.18, and constitute deceptive acts or practices in violation of Section 5(a) of the FTC Act, 15 U.S.C.  45(a).

Count V: Failure to Provide or Failure to Provide Accurately
TILA Disclosures in Extended Transactions

13. Respondent Fleet Finance, in the course and conduct of its business, has, on numerous occasions, extended consumer credit transactions and failed to provide or failed to provide accurately certain TILA disclosures, including but not limited to the following:

(a) the annual percentage rate;

(b) the number, amount, and timing of payments scheduled to repay the obligation; and

(c) the total of payments.

14. Respondent Fleet Finance's aforesaid acts and practices violate Sections 107 and 128 of the TILA, 15 U.S.C. 1606 and 1638, and Sections 226.18(e), (g) and (h) and 226.22 of Regulation Z, 12 C.F.R.   226.18(e), (g) and (h) and 226.22, and constitute deceptive acts or practices in violation of Section 5(a) of the FTC Act, 15 U.S.C.  45(a).

Count VI: Failure to Provide or Failure to Provide Accurately
TILA Disclosures in Purchased Transactions

15. Respondent Fleet Finance, in the course and conduct of its business, has, on numerous occasions, purchased consumer credit transactions through assignments that failed to provide or failed to provide accurately certain TILA disclosures, including but not limited to the following:

(a) the identity of the creditor;

(b) the number, amount, and timing of payments scheduled to repay the obligation; and

(c) the total of payments.

16. Respondent Fleet Finance's aforesaid acts and practices, based on its assignee liability in Section 131 of the TILA, 15 U.S.C.  1641, violate Section 128 of the TILA, 15 U.S.C.  1638, and Sections 226.18(a), (g) and (h) of Regulation Z, 12 C.F.R.  226.18(a), (g) and (h), and constitute deceptive acts or practices in violation of Section 5(a) of the FTC Act, 15 U.S.C.  45(a).

Count VII: Failure to Retain Documents in Extended Transactions

17. Respondent Fleet Finance, in the course and conduct of its business, has, on numerous occasions, extended consumer credit transactions and failed to retain TILA disclosures, TILA notices of the right to rescind, promissory notes and/or other evidence of the terms and conditions of consumer credit transactions for two years after the date disclosures are required to be made or action is required to be taken concerning the transaction.

18. Respondent Fleet Finance's aforesaid acts and practices violate Section 226.25(a) of Regulation Z, 12 C.F.R.  226.25(a).

Count VIII: Failure to Retain Documents in Purchased Transactions

19. Respondent Fleet Finance, in the course and conduct of its business, has, on numerous occasions, purchased consumer credit transactions through assignments that failed to retain TILA disclosures, TILA notices of the right to rescind, promissory notes and/or other evidence of the terms and conditions of consumer credit transactions for two years after the date disclosures are required to be made or action is required to be taken concerning the transaction.

20. Respondent Fleet Finance's aforesaid acts and practices, based on its assignee liability in Section 131 of the TILA, 15 U.S.C.  1641, violate Section 226.25(a) of Regulation Z, 12 C.F.R.  226.25(a).

THEREFORE, the Federal Trade Commission this ____ day of ____, 1999, has issued this complaint against respondent.

By the Commission.
Donald S. Clark
Secretary
SEAL: