UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF TEXAS
DALLAS DIVISION

FEDERAL TRADE COMMISSION, Plaintiff,

v.

MODERN CREDIT FINANCIAL SERVICES, INC., a corporation,
MATTHEW A. HAMMACK, individually and as an officer and director of the corporation, and
ROBERT HANSEL, individually and as an officer and director of the corporation, Defendants.


Civil Action No. 3-99CV1756-G

STIPULATED FINAL JUDGMENT AND ORDER FOR PERMANENT INJUNCTION AND MONETARY RELIEF

Plaintiff, the Federal Trade Commission ("FTC" or "Commission"), commenced this action by filing a Complaint pursuant to Sections 13(b) and 19 of the Federal Trade Commission Act ("FTC Act"), 15 U.S.C.  53(b) and 57b, charging the defendants with engaging in unfair or deceptive acts or practices in violation of Section 5 of the FTC Act, 15 U.S.C.  45, and the FTC's Telemarketing Sales Rule, 16 C.F.R. Part 310.

Now the Commission and defendants agree to a settlement of this action without trial or adjudication of any issue of law or fact herein and without the defendants admitting liability for any of the violations alleged in the complaint or for any wrongdoing whatsoever. The Commission and defendants consent to entry of this Final Order without trial or adjudication of any issue of law or fact herein.

Upon the consent of the parties hereto, IT IS HEREBY ORDERED, ADJUDGED, AND DECREED as follows:

FINDINGS

1. This is an action by the Commission instituted under Sections 5, 13(b), and 19 of the Federal Trade Commission Act, 15 U.S.C.  45, 53(b), and 57b, and the Telemarketing Sales Rule, 16 C.F.R. Part 310. The Complaint seeks both permanent injunctive relief and consumer redress for alleged deceptive acts or practices by the defendants in connection with the promotion, offering for sale and sale of services relating to credit cards, loans, or other extensions of credit. The Complaint states a claim upon which relief may be granted against defendants under Sections 5, 13(b), and 19 of the FTC Act, and the Telemarketing Sales Rule.
 
2. This Court has jurisdiction over the subject matter of this case and has jurisdiction over the defendants. Venue in the Northern District of Texas is proper.
 
3. The activities of defendants are in or affecting commerce, as commerce is defined in 15 U.S.C.  44.
 
4. Defendants waive all rights to seek judicial review or otherwise challenge or contest the validity of this Order. Defendants also waive any claim that they may hold under the Equal Access to Justice Act, 28 U.S.C.  2412 (as amended), concerning the prosecution of this action to the date of this Order. Defendants shall bear their own costs and attorneys fees.
 
5. Entry of this Order is in the public interest.
 
6. This Order is remedial in nature and shall not be construed as the payment of a fine, penalty, punitive assessment, or forfeiture.

DEFINITIONS

For purposes of this Final Judgment and Order for Permanent Injunction and Monetary Relief, the following definitions shall apply:

1. "Telemarketing" shall mean any business activity (which includes, but is not limited to, initiating or receiving telephone calls, managing others who initiate or receive telephone calls, operating an enterprise that initiates or receives telephone calls, owning an enterprise that initiates or receives telephone calls, or otherwise participating as an officer, director, employee or independent contractor in an enterprise that initiates or receives telephone calls) that involves attempts to induce consumers to purchase any item, good, service, partnership interest, trust interest or other beneficial interest, or to enter a contest for a prize, by means of telephone sales presentations, either exclusively or in conjunction with the use of other forms of marketing. Provided that the term "telemarketing" shall not include transactions that are not completed until after a face-to-face contact between the seller or solicitor and the consumers solicited. Provided further, that for the purposes of Paragraph IC, the definition of telemarketing shall be consistent with 16 C.F.R.  310.2.
 
2. "Person" means any individual, group, unincorporated association, limited or general partnership, corporation, or other business entity.
 
3. "Assets" means all real and personal property of any defendant, or held for the benefit of any defendant, including but not limited to "goods," " instruments," "equipment," "fixtures," "general intangibles," "inventory," "checks," or "notes," (as these terms are defined in the Uniform Commercial Code), lines of credit, and all cash, wherever located.
 
4. "Document" is synonymous in meaning and equal in scope to the usage of the term in Federal Rule of Civil Procedure 34(a) and includes writings, drawings, graphs, charts, photographs, audio and video recordings, computer records, and other data compilations from which the information can be obtained and translated, if necessary, through detection devices into reasonably usable form. A draft or non-identical copy is a separate document within the meaning of the term.
 
5. "Assisting others" means knowingly providing any of the following goods or services to another entity: (1) performing customer service functions, including, but not limited to, receiving or responding to consumer complaints; (2) formulating or providing, or arranging for the formulation or provision of, any telephone sales script or any other marketing material; (3) providing names of, or assisting in the generation of, potential customers; or (4) performing marketing services of any kind.

ORDER

I. PROHIBITED BUSINESS ACTIVITIES

A. IT IS THEREFORE ORDERED that, in connection with the advertising, promotion, offering for sale, or sale of services relating to credit cards, loans, or other extensions of credit, defendants Modern Credit Financial Services, Inc., Matthew A. Hammack, and Robert Hansel, and their successors, assigns, directors, officers, agents, servants, employees, attorneys, and all other persons or entities in active concert or participation with them who receive actual notice of this Order by personal service or otherwise, whether acting directly or through any corporation, subsidiary, division, or other device, are hereby permanently restrained and enjoined from:

1. Misrepresenting, expressly or by implication, that consumers who pay a required advance fee can reasonably expect to receive a credit card, loan, or other extension of credit;
 
2. Misrepresenting, expressly or by implication, that any defendant has connections with sources that are likely to result in the provision of credit cards, loans, or other extensions of credit; and
 
3. Misrepresenting, expressly or by implication, any fact material to a consumer's decision to purchase services relating to credit cards, loans, or other extensions of credit from any defendant;

B. IT IS FURTHER ORDERED that, with respect to the advertising, marketing, promoting, offering for sale, or sale of any good or service, defendants Modern Credit Financial Services, Inc., Matthew A. Hammack, and Robert Hansel, and their successors, assigns, directors, officers, agents, servants, employees, attorneys, and all other persons or entities in active concert or participation with them who receive actual notice of this Order by personal service or otherwise, whether acting directly or through any corporation, subsidiary, division, or other device, are hereby permanently restrained and enjoined from misrepresenting, expressly or by implication, any fact material to a consumer's decision to purchase defendants' products or services; and

IT IS FURTHER ORDERED that defendants Modern Credit Financial Services, Inc., Matthew A. Hammack, and Robert Hansel, and their successors, assigns, directors, officers, agents, servants, employees, attorneys, and all other persons or entities in active concert or participation with them who receive actual notice of this Order by personal service or otherwise, whether acting directly or through any corporation, subsidiary, division, or other device, are hereby permanently restrained and enjoined from violating or assisting others in violating any provision of the Telemarketing Sales Rule, 16 C.F.R. Part 310, including but not limited to: (1) stating that consumers have a high likelihood of obtaining a credit card, such as a Visa or MasterCard, in return for the payment in advance of a one-time fee; and (2) requesting or receiving payment of any fee or consideration in advance of obtaining or arranging an extension of credit when they have guaranteed or represented a high likelihood of success in obtaining or arranging an extension of credit.

II. BOND REQUIREMENT

IT IS FURTHER ORDERED that each of the defendants Modern Credit Financial Services, Inc., Matthew A. Hammack, and Robert Hansel, whether acting directly or indirectly through any persons or entities under such defendant's control, are hereby permanently enjoined and restrained from engaging in or assisting others engaged in telemarketing or in the advertising, promotion, offering for sale, or sale of services relating to credit cards, loans, or other extensions of credit, unless, prior to engaging in or assisting others engaged in such activities, such defendant first obtains a performance bond ("the Bond") in the principal sum of five hundred thousand dollars ($500,000). The terms and conditions of the Bond requirement are as follows:

A. The Bond shall be conditioned upon compliance with Section 5(a) of the FTC Act, 15 U.S.C.  45(a), the Telemarketing Sales Rule, 16 C.F.R. Part 310, and with the provisions of this Order. The Bond shall be deemed continuous and remain in full force and effect as long as such defendant is engaging in or assisting others engaged in telemarketing or in the advertising, promotion, offering for sale, or sale of services relating to credit cards, loans, or other extensions of credit. Such defendant shall maintain the Bond for a period of five (5) five years after such defendant provides notice to the Commission that such defendant has ceased engaging in or assisting others engaged in telemarketing or in the advertising, promotion, offering for sale, or sale of services relating to credit cards, loans, or other extensions of credit. The Bond shall cite this Order as the subject matter of the Bond, and shall provide surety thereunder against financial loss resulting from whole or partial failure of performance due, in whole or in part, to any violation of Section 5(a) of the FTC Act, the Telemarketing Sales Rule, or the provisions of this Order, or to any other violation of law;
 
B. The Bond required pursuant to this Paragraph shall be an insurance agreement providing surety for financial loss issued by a surety company that is admitted to do business in each state in which such defendant, or any entity directly or indirectly under such defendant's control, is doing business and that holds a Federal Certificate of Authority As Acceptable Surety On Federal Bond and Reinsuring. The Bond shall be in favor of both: (1) the Federal Trade Commission for the benefit of any consumer injured as a result of any activities that required obtaining the Bond; and (2) any consumer so injured;
 
C. The Bond required pursuant to this Paragraph is in addition to, and not in lieu of, any other bonds required by federal, state, or local law;
 
D. At least ten (10) days before commencing in any activity that requires obtaining the Bond, such defendant shall provide notice to the Commission describing in reasonable detail said activities, and include in such notice a copy of the Bond obtained;
 
E. Such defendant shall not disclose the existence of the Bond to any consumer without simultaneously making the following disclosure: "THE BOND IS REQUIRED BY ORDER OF THE U.S. DISTRICT COURT AS PART OF A FINAL ORDER AGAINST [name of such defendant] in FTC v. Modern Credit Financial Services, Inc., et al., Civ. Action No. 3-99CV1756-G, U.S. District Court for the Northern District of Texas. The disclosure shall be set forth in a clear and conspicuous manner, separated from all other text, in 100 percent black ink against a light background, in print at least as large as the main text of the sales material or document, and enclosed in a box containing only the required disclosure.

III. MONETARY RELIEF

IT IS FURTHER ORDERED that defendants Modern Credit Financial Services, Inc., Matthew A. Hammack, and Robert Hansel shall be jointly and severally liable for payment of equitable monetary relief, including, but not limited to, consumer redress and/or disgorgement, and for paying any attendant expenses of administration of any redress fund, in the amount of FIFTEEN THOUSAND DOLLARS ($15,000). .

A. Prior to or concurrently with the execution of this Order, the defendants shall turn over the entire payment of FIFTEEN THOUSAND DOLLARS ($15,000) to their attorney who shall hold it in escrow until the entry of this Order. Within ten (10) days of the date of entry of this Order, the defendants shall transfer the escrowed amount in the form of a wire transfer or certified or cashier's check made payable to the Commission, or such agent as the Commission may direct.
 
B. Time is of the essence for the payment specified above. In the event that the defendants do not fulfill, or only partially fulfill, the payment obligation set forth in this Paragraph, they shall be immediately liable for payment of the entire amount due plus interest, less any payments already made. Notwithstanding any other provision of this Order, the defendants agree that, if they fail to meet the payment obligation set forth in this Paragraph, the facts as alleged in the Complaint filed with this Order shall be taken as true in any subsequent litigation filed by the Commission to enforce its rights pursuant to this Order, including, but not limited to, a nondischargeability complaint in any subsequent bankruptcy proceeding.
 
C. Any funds received by the Commission pursuant to this Paragraph shall be deposited in an account maintained by the Commission or its agent. Upon the final disposition of this action, said assets shall be either: (1) distributed as redress to consumers, or (2) paid to the U.S. Treasury, if such distribution is deemed impractical. If the Commission, in its sole discretion, determines that redress is practical, it shall submit a plan for the disbursement of funds to the Court for review and approval. In establishing this plan, the Commission shall have full and sole discretion to determine the criteria and parameters for participation by injured consumers in a redress program, and may delegate any and all tasks connected with such redress program to any individuals, partnerships, or corporations, and pay the fees, salaries, and expenses incurred thereby in carrying out said tasks from the funds received pursuant to this Paragraph.

IV. FINANCIAL STATEMENTS

IT IS FURTHER ORDERED that the Commission's agreement to and the Court's approval of this Order is expressly premised upon the truthfulness, accuracy, and completeness of the financial statements and information provided by defendants Modern Credit Financial Services, Inc., Matthew A. Hammack, and Robert Hansel to counsel for the Commission on or about September 22, 1999, which contain material information relied upon by the Commission in negotiating and agreeing to the terms of this Order.

IT IS FURTHER ORDERED that if the Commission should have evidence that the above-referenced financial statements and information failed to disclose any material asset the value of which exceeds $1,000, materially misrepresented the value of any asset, or made any other material misrepresentation or omission, the Commission may move that the Court reopen this Order for the sole purpose of allowing the Commission to modify the monetary liability of the defendants. If the Court finds that any defendant(s) failed to disclose any material asset, materially misrepresented the value of any asset, or made any other material misrepresentation or omission in the above-referenced financial statements and information, the Court shall enter judgment against such defendant(s), in favor of the Commission, in the amount of two million dollars ($2,000,000), which the defendants and the Commission stipulate is the amount of consumer injury caused by the defendants, less any redress amounts previously paid. Should this judgment be modified as to the monetary liability of the defendants, this Order, in all other respects, shall remain in full force. Any proceedings instituted under this Paragraph shall be in addition to and not in lieu of any other proceedings the Commission may initiate to enforce this Order. Solely for the purposes of reopening or enforcing this Paragraph, defendants waive any right to contest any of the allegations set forth in the Complaint filed in this matter.

V. COLLECTING UNPAID REDRESS

IT IS FURTHER ORDERED that the defendants Modern Credit Financial Services, Inc., Matthew A. Hammack, and Robert Hansel shall cooperate fully with the Commission and its agents in all attempts to collect the amount due pursuant to Paragraphs III and IV, if the defendants fail to pay fully the amount due at the time specified by this Order. In such an event, the defendants agree to provide the Commission with their federal and state tax returns for the preceding three (3) years, and with full updated financial disclosures, in the form as was previously submitted by defendants as referenced in Paragraph IV, above, within ten (10) business days of receiving a request from the Commission to do so. The defendants further authorize the Commission to verify all information provided on their disclosure forms with all appropriate third parties, including, but not limited to, financial institutions. The defendants are hereby required, in accordance with 31 U.S.C.  7701, to furnish the Commission their social security numbers, which shall be used for purposes of collecting and reporting on any delinquent amount arising out of such defendant's relationship with the government.

VI. CUSTOMER LISTS

IT IS FURTHER ORDERED that defendants Modern Credit Financial Services, Inc., Matthew A. Hammack, and Robert Hansel, and their successors, assigns, directors, officers, agents, servants, employees, attorneys, and all other persons or entities in active concert or participation with them who receive actual notice of this Order by personal service or otherwise, whether acting directly or through any corporation, subsidiary, division, or other device, are permanently restrained and enjoined from selling, renting, leasing, transferring, or otherwise disclosing the name, address, telephone number, credit card number, bank account number, e-mail address, or other identifying information of any person whom defendants charged a fee for arranging for the provision of a credit card, loan, or other extension of credit. Provided that defendants may disclose such identifying information to a law enforcement agency or as required by any law, regulation, or court order.

VII. CEASE COLLECTIONS, NOTICES TO CONSUMERS

IT IS FURTHER ORDERED that defendants Modern Credit Financial Services, Inc., Matthew A. Hammack, and Robert Hansel, and their successors, assigns, directors, officers, agents, servants, employees, attorneys, and all other persons or entities in active concert or participation with them who receive actual notice of this Order by personal service or otherwise, whether acting directly or through any corporation, subsidiary, division, or other device, shall:

A. Cease all collection efforts on accounts arising from contracts, agreements, or understandings between defendants and credit card clients, including but not limited to:
 
(1) direct all third parties engaged in collection efforts regarding such accounts, including TeleCheck Services, Inc., to cease all such collection activities and to cease furnishing any negative information to any consumer reporting agencies;
 
(2) waive, discharge, and release all present and future legal and equitable claims relating to any payments from TeleCheck Services, Inc., including a payment of $8,742, in connection with the collection of such accounts; and
 
(3) return to TeleCheck Services, Inc. the final payment totaling $3,916 made by TeleCheck Services, Inc. to defendants in connection with the collection of such accounts;
 
B. Within twenty (20) days after the date this Order is entered, return to credit card clients all uncashed checks or other negotiable instruments, including checks totaling over $5,800, in defendants' possession that have been received by defendants, directly or indirectly, on accounts arising from contracts, agreements, or understandings between defendants and their clients. Include with each such returned check or other negotiable instrument a notice to the client stating that, as a result of an agreement between defendants and the Federal Trade Commission settling allegations regarding defendants' ability to obtain credit cards, those clients' contracts are rescinded; and
 
C. Within sixty (60) days after the date this Order is entered, provide the names and addresses of those clients to whom checks or other negotiable instruments were returned pursuant to Subparagraph B above to: Regional Director, Southwest Region, Federal Trade Commission, Suite 2150, 1999 Bryan Street, Dallas, Texas 75201.

VIII. RECORD KEEPING PROVISIONS

IT IS FURTHER ORDERED that, for a period of five (5) years from the date of entry of this Order, defendants Modern Credit Financial Services, Inc., Matthew A. Hammack, and Robert Hansel, and their successors, assigns, directors, officers, agents, servants, employees, attorneys, and all other persons or entities in active concert or participation with them who receive actual notice of this Order by personal service or otherwise, whether acting directly or through any corporation, subsidiary, division, or other device, in connection with any business where such defendant is the majority owner of the business or directly or indirectly manages or controls the business, are hereby restrained and enjoined from failing to create, and from failing to retain for a period of three (3) years following the date of such creation, unless otherwise specified:

A. Books, records and accounts that, in reasonable detail, accurately and fairly reflect the cost of goods or services sold, revenues generated, and the disbursement of such revenues;
 
B. Records accurately reflecting: the name, address, and telephone number of each person employed in any capacity by such business, including as an independent contractor; that person's job title or position; the date upon which the person commenced work; and the date and reason for the person's termination, if applicable. The businesses subject to this Paragraph shall retain such records for any terminated employee for a period of two (2) years following the date of termination;
 
C. Records containing the names, addresses, phone numbers, dollar amounts paid, quantity of items or services purchased, and description of items or services purchased, for all consumers to whom such business has sold, invoiced or shipped any goods or services, or from whom such business accepted money or other items of value;
 
D. Records that reflect, for every consumer complaint or refund request, whether received directly or indirectly or through any third party:
 
(1) the consumer's name, address, telephone number and the dollar amount paid by the consumer;
 
(2) the written complaint or refund request, if any, and the date of the complaint or refund request;
 
(3) the basis of the complaint, including the name of any salesperson complained against, and the nature and result of any investigation conducted concerning any complaint;
 
(4) each response and the date of the response;
 
(5) any final resolution and the date of the resolution; and
 
(6) in the event of a denial of a refund request, the reason for the denial; and
 
E. Copies of all sales scripts, training materials, advertisements, or other marketing materials utilized; provided that copies of all sales scripts, training materials, advertisements, or other marketing materials utilized shall be retained for (3) years after the last date of dissemination of any such materials.

IX. DISTRIBUTION OF ORDER BY DEFENDANTS

IT IS FURTHER ORDERED that, for a period of five (5) years from the date of entry of this Order, defendants Modern Credit Financial Services, Inc., Matthew A. Hammack, and Robert Hansel shall each:

A. Provide a copy of this Order to, and obtain a signed and dated acknowledgment of receipt of same from, each officer or director, each individual serving in a management capacity, all personnel involved in responding to consumer complaints or inquiries, and all sales personnel, whether designated as employees, consultants, independent contractors or otherwise, immediately upon employing or retaining any such persons, for any business where such defendant is the majority owner of the business or directly or indirectly manages or controls the business.
 
B. Maintain for a period of three (3) years after creation, and upon reasonable notice, make available to representatives of the Commission, the original signed and dated acknowledgments of the receipt of copies of this Order, as required in Section A of this Paragraph.

X. COMPLIANCE REPORTING BY DEFENDANTS

IT IS FURTHER ORDERED that, in order that compliance with the provisions of this Order may be monitored:

A. For a period of five (5) years from the date of entry of this Order, defendants Modern Credit Financial Services, Inc., Matthew A. Hammack, and Robert Hansel shall each notify the Commission of the following:
 
(1) Any changes in such defendant's residence, mailing addresses, and telephone numbers, within ten (10) days of the date of such change;
(2) Any changes in such defendant's employment status (including self-employment) within ten (10) days of such change. Such notice shall include the name and address of each business that defendant is affiliated with or employed by, a statement of the nature of the business, and a statement of defendant's duties and responsibilities in connection with the business or employment; and
 
(3) Any proposed change in the structure of such corporate defendant or any proposed change in the structure of any business entity owned or controlled by such individual defendant such as creation, incorporation, dissolution, assignment, sale, merger, creation, dissolution of subsidiaries, proposed filing of a bankruptcy petition, or change in the corporate name or address, or any other change that may affect compliance obligations arising out of this Order, thirty (30) days prior to the effective date of any proposed change; provided, however, that, with respect to any proposed change in the corporation about which such defendant learns less than thirty (30) days prior to the date such action is to take place, such defendant shall notify the Commission as soon as is practicable after learning of such proposed change;
 
B. One hundred eighty (180) days after the date of entry of this Order, defendants shall provide a written report to the FTC, sworn to under penalty of perjury, setting forth in detail the manner and form in which the defendants have complied and are complying with this Order. This report shall include but not be limited to:
 
(1) Defendants' then current residence addresses and telephone numbers;
 
(2) Individual defendants' then current employment, business addresses and telephone numbers, a description of the business activities of each such employer, and individual defendants' title and responsibilities for each employer;
 
(3) A copy of each acknowledgment of receipt of this Order obtained by defendants pursuant to Paragraph IX;
 
(4) A statement describing the manner in which defendants have complied and are complying with the
 
(a) Injunctive provisions in Paragraph I of the Order; and
 
(b) Monetary relief provisions in Paragraph III of the Order;
C. Upon written request by a representative of the Commission, defendants shall submit additional written reports (under oath, if requested) and produce documents on fifteen (15) days' notice with respect to any conduct subject to this Order;
 
D. For the purposes of this Order, defendants shall, unless otherwise directed by the Commission's authorized representatives, mail all written notifications to the Commission to:
 
Regional Director
Southwest Region
Federal Trade Commission
Suite 2150, 1999 Bryan Street
Dallas, Texas 75201
 
Re: FTC v. Modern Credit Financial Services, Inc., et al.
Civ. Act. No. 3-99CV11756-G
 
E. For the purposes of this Paragraph, "employment" includes the performance of services as an employee, consultant, or independent contractor; and "employers" includes any individual or entity for whom defendants perform services as an employee, consultant, or independent contractor; and
 
F. For purposes of the compliance reporting required by this Paragraph, the Commission is authorized to communicate directly with defendants.

XI. COMMISSION'S AUTHORITY
TO MONITOR COMPLIANCE

IT IS FURTHER ORDERED that the Commission is authorized to monitor defendants' compliance with this Order by all lawful means, including but not limited to, the following means:

A. The Commission is authorized, without further leave of court, to obtain discovery from any person in the manner provided by Chapter V of the Federal Rules of Civil Procedure, Fed. R. Civ. P. 26-37, including the use of compulsory process pursuant to Fed. R. Civ. P. 45, for the purpose of monitoring and investigating defendants' compliance with any provision of this Order;
 
B. The Commission is authorized to use representatives posing as consumers and suppliers to defendants, defendants' employees, or any other entity managed or controlled in whole or in part by defendants, without the necessity of identification or prior notice; and
 
C. Nothing in this Order shall limit the Commission's lawful use of compulsory process, pursuant to Sections 9 and 20 of the FTC Act, 15 U.S.C.   49 and 57b-1, to investigate whether defendants have violated any provision of this Order or Section 5 of the FTC Act, 15 U.S.C.  45.

XII. ACCESS TO BUSINESS PREMISES

IT IS FURTHER ORDERED that, for a period of five (5) years from the date of entry of this Order, for the purpose of further determining compliance with this Order, defendants Modern Credit Financial Services, Inc., Matthew A. Hammack, and Robert Hansel shall permit representatives of the Commission, within three (3) business days of receipt of written notice from the Commission:

A. Access during normal business hours to any office, or facility storing documents, of any business where such defendant is the majority owner of the business or directly or indirectly manages or controls the business. In providing such access, such defendant shall permit representatives of the Commission to inspect and copy all documents relevant to any matter contained in this Order; and shall permit Commission representatives to remove documents relevant to any matter contained in this Order for a period not to exceed five (5) business days so that the documents may be inspected, inventoried, and copied; and
 
B. To interview the officers, directors, and employees, including all personnel involved in responding to consumer complaints or inquiries, and all sales personnel, whether designated as employees, consultants, independent contractors or otherwise, of any business to which Section A of this Paragraph applies, concerning matters relating to compliance with the terms of this Order. The person interviewed may have counsel present.

Provided that, upon application of the Commission and for good cause shown, the Court may enter an ex parte order granting immediate access to defendants' business premises for the purposes of inspecting and copying all documents relevant to any matter contained in this Order.

XIII. ACKNOWLEDGMENT OF
RECEIPT OF ORDER BY DEFENDANTS

IT IS FURTHER ORDERED that, within five (5) business days after receipt by defendants Modern Credit Financial Services, Inc., Matthew A. Hammack, and Robert Hansel of this Order as entered by the Court, each defendant shall submit to the Commission a truthful sworn statement, in the form shown on Appendix A hereto, that shall acknowledge receipt of this Order.

XIV. LIFT OF ASSET FREEZE

IT IS FURTHER ORDERED that the freeze of the defendants' assets, imposed in the Preliminary Injunction entered in this proceeding, shall be lifted upon the entry of this Final Judgment.

XV. RETENTION OF JURISDICTION

IT IS FURTHER ORDERED that the Court shall retain jurisdiction of this matter for the purpose of enabling the parties to apply to the Court at any time for such further orders and directions as may be necessary or appropriate for the interpretation, modification or enforcement of this Order, or for the punishment of violations thereof.

The parties hereby consent to the terms and conditions of the Stipulated Final Judgment and Order for Permanent Injunction and Monetary Relief as set forth above and consent to entry thereof. Each party shall bear its own costs and attorney's fees.

SO ORDERED, this 4th day of May, 2000.

_______________________________
A. Joe Fish
United States District Judge

SO STIPULATED:

Gary D. Kennedy
Oklahoma Bar No. 01365300
Southwest Region
Federal Trade Commission
Suite 2150, 1999 Bryan Street
Dallas, Texas 75201 (214) 979-9379 (office)
(214) 953-3079 (facsimile)

ATTORNEY FOR PLAINTIFF

Modern Credit Financial Services, Inc.
by Matthew A. Hammack, President

DEFENDANT

Matthew A. Hammack, individually and as
an officer of Modern Credit Financial Services, Inc.

DEFENDANT

Robert Hansel, individually and as an officer
of Modern Credit Financial Services, Inc.

DEFENDANT

Robert M. Cady
Texas Bar Card No. 03588000
1700 Commerce, Suite 700
Dallas, Texas 75201
(214) 651-0000 (voice)
(214) 747-1110 (facsimile)

ATTORNEY FOR DEFENDANTS

UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF TEXAS
DALLAS DIVISION

FEDERAL TRADE COMMISSION, Plaintiff,

v.

MODERN CREDIT FINANCIAL SERVICES, INC., a corporation,
MATTHEW A. HAMMACK, individually and as an officer and director of the corporation, and
ROBERT HANSEL, individually and as an officer and director of the corporation, Defendants.

Civil Action No. 3-99CV1756-G

AFFIDAVIT OF [NAME OF DEFENDANT]

[Name of defendant], being duly sworn, hereby states and affirms as follows:

1. My name is [______]. My social security number is [_____]. My current residence address is [_____]. I am a citizen of the United States and am over the age of eighteen. I have personal knowledge of the facts set forth in this Affidavit.
 
2. I am a defendant in FTC v. Modern Financial Services, Inc., et al., Civil Action No. 3-99CV1746-G in the United States District Court for the Northern District of Texas, Dallas Division.
 
3. On __________ ___, 2000, I received a copy of the Stipulated Final Judgment and Order for Permanent Injunction and Monetary Relief, which was signed by the Honorable A. Joe Fish and entered by the Court on __________ ___, 2000. A true and correct copy of the Order I received is attached to this Affidavit.

I declare under penalty of perjury under the laws of the United States that the foregoing is true and correct. Executed on ____________ ___, 2000, at ______.

__________________________________
Name of Defendant

State of ____________________, City of ____________________

Subscribed and sworn to before me

this _____ day of _________, 2000.

_____________________________
Notary Public

My Commission Expires:

_____________________________