NORTHERN DISTRICT OF ILLINOIS
UNITED STATES OF AMERICA,
BONLAR LOAN CO., INC., a
LARRY METNICK, individually and as an officer of the
Civil Action No.
WHEREAS: Plaintiff, the United States of America, has
commenced this action by filing the Complaint herein;
defendants have waived service of the Summons and
Complaint; the parties have been represented by the
attorneys whose names appear hereafter; and the parties
have agreed to settlement of this action upon the
following terms and conditions, without adjudication of
any issue of fact or law and without defendants admitting
liability for any of the matters alleged in the
THEREFORE, on the joint motion of plaintiff and
defendants, it is hereby ORDERED, ADJUDGED, AND DECREED
- This Court has jurisdiction of the subject matter
and of the parties.
- The Complaint states a claim upon which relief
may be granted against the defendants under
Sections 5(a)(1), 5(m)(1)(A), 9, 13(b), and 16(a)
of the Federal Trade Commission Act ("FTC
Act"), 15 U.S.C. §§ 45(a)(1),
45(m)(1)(A), 49, 53(b) and 56(a), and under the
Equal Credit Opportunity Act ("ECOA"),
15 U.S.C. §§ 1691-1691(f), as amended,
and under the Federal
Reserve Board Regulation B ("Regulation
B"), 12 C.F.R. Part 202,
and under the Fair Credit Reporting Act
("FCRA"), 15 U.S.C.
§§ 1681-1681t, as amended.
- As used in this Consent Decree:
- the Equal Credit Opportunity Act or ECOA
refers to 15 U.S.C. §§ 1691-1691f,
- "Regulation B" refers to the
Federal Reserve Board Regulation B, 12
C.F.R. § 202, as amended;
- the terms "adverse action,"
"credit" are defined as
provided in Regulation B, 12 C.F.R.
- The Fair Credit Reporting Act or FCRA
refers to 15 U.S.C. §§ 1681-1681t,
as amended; and
- the terms "consumer,"
"consumer report," and
"consumer reporting agency" are
defined as provided in Sections 603(c),
(d), and (f) respectively of the FCRA, 15
U.S.C. §§ 1681a(c), (d), and (f).
- Defendants, Bonlar Loan Co., Inc. and Larry
Metnick, their successors and assigns, shall pay
to plaintiff a civil penalty, pursuant to Section
5(m)(1)(A) of the FTC Act, 15 U.S.C.
§ 45(m)(1)(A), in the amount of $40,000.
Defendants are jointly and severally responsible
for paying the penalty.
- Defendants shall make the payment required by
Paragraph 3 within five (5) days of the date of
entry of this Consent Decree by electronic fund
transfer in accordance with the instructions
provided by the Office of Consumer Litigation,
U.S. Department of Justice, Washington D.C.
- In the event of any default in payment, which
default continues for ten days beyond the due
date of payment, the entire unpaid penalty,
together with interest, as computed pursuant to
28 U.S.C. § 1961 from the date of default
to the date of payment, shall immediately become
due and payable.
- Defendants, their successors and assigns, and
their officers, agents, servants and employees,
and all persons in active concert or
participation with any one or more of them who
receive actual notice of this Consent Decree by
personal service or otherwise, are hereby
enjoined, directly or through any corporation,
subsidiary, division or other device from:
- failing to notify each applicant in
writing within 30 days of adverse action
taken on such person's application, as
provided by Section 701 of the ECOA, 15
U.S.C. § 1691(d), as amended, and
Sections 202.9(a) and (b) of Regulation
B, 12 C.F.R. §§ 202.9(a) and (b),
- failing to provide the applicant with the
specific, principal reason(s) for adverse
action or a disclosure of the applicant's
right to a statement of such reason(s)
within 30 days, if the statement is
requested within 60 days of Bonlar's
notification, as provided by Section 701
of the ECOA, 15 U.S.C. § 1691(d),
as amended, and Sections 202.9(a) and (b)
of Regulation B, 12 C.F.R.
§ 202.9(a) and (b), as amended.
- requesting information, if an applicant
applies for individual unsecured credit,
concerning the applicant's marital status
in a situation where the following does
- the applicant resides in a
community property state; or
- the applicant is relying on
property located in a community
property state as a basis for
repayment of the credit
as provided by Section 202.5(d)(1) of Regulation B, 12
C.F.R. § 202.5(d)(1), as amended.
- requesting information concerning the applicant's
marital status using terms other than
"married," "unmarried," and
defendants may explain that the category
"unmarried" includes single, divorced,
and widowed persons, as provided by Section
202.5(d)(1) of Regulation B, 12 C.F.R. §
202.5(d)(1), as amended.
- using an application form that contains terms
that are not neutral as to sex, as provided by
Section 202.5(d)(3) of Regulation B, 12 C.F.R.
§ 202.5(d)(3), as amended.
- failing to comply in any other respect with the
ECOA, 15 U.S.C. §§ 1691-1691f or
Regulation B, 12 C.F.R. Part 202, as amended.
- failing to advise the applicant, at the time that
adverse action is taken on an application, that
the adverse action has been taken, in whole or in
part, because of information contained in a
consumer report from a consumer reporting agency,
and to supply the applicant with the name and
address of the consumer reporting agency making
said report, as provided by Section 615 of the
FCRA, 15 U.S.C. § 1681m(a), as amended.
- failing to comply in any other respect with the
FCRA, 15 U.S.C. §§ 1681-1681t, as amended.
Defendants, their successors and assigns, shall,
within thirty (30) days of the entry of this Consent
Decree, provide a copy of this Consent Decree, the ECOA
and Regulation B and the FCRA to each of their officers,
agents, servants and employees having responsibilities
with respect to the subject matter of this Order, secure
from each such person a signed statement acknowledging
receipt of a copy of this Consent Decree, and shall,
within ten (10) days of complying with this paragraph,
file an affidavit with the Court and serve the Federal
Trade Commission, by mailing a copy thereof to the
Associate Director for Credit Practices, Bureau of
Consumer Protection, Washington D.C. 20580, setting forth
the fact and manner of their compliance, including the
name and title of each person to whom a copy of the
Consent Decree has been provided.
For a period of five (5) years from the date of entry
of this Consent Decree, defendants, their successors and
assigns, shall maintain and make available to the Federal
Trade Commission, within thirty (30) days of the receipt
of a written request, business records demonstrating
compliance with the terms and provisions of this Consent
Defendant Bonlar Loan Co., Inc., its successors and
assigns, shall notify the Associate Director for Credit
Practices at least thirty (30) days prior to any change
in defendant's business, including, but not limited to,
merger, incorporation, dissolution, assignment, sale
which results in the emergence of a successor
corporation, the creation or dissolution of a subsidiary
or parent, or any other change which may affect
defendant's obligations under this judgment.
Defendant Larry Metnick shall, for a period of ten
years from the date of entry of this Consent Decree,
notify the Associate Director for Credit Practices,
Bureau of Consumer Protection, Federal Trade Commission,
Washington, D.C. 20580, within thirty days of each
affiliation with a new business or employment whose
activities include the offering credit to consumers or of
his affiliation with a new business or employment in
which his own duties and responsibilities involve
offering credit to consumers.
This Court shall retain jurisdiction of this matter
for the purposes of enabling any of the parties to this
Consent Decree to apply to the Court at any time for such
further order or directives as may be necessary or
appropriate for the interpretation or modification of
this Consent Decree, for the enforcement of compliance
therewith, or for the punishment of violations thereof,
or as justice may require.
JUDGMENT IS THEREFORE ENTERED in favor of plaintiff
and against defendants, pursuant to all the terms and
conditions recited above.
Dated this ______ day of ____________, 19__.
UNITED STATES DISTRICT JUDGE
The parties, by their respective counsel, hereby
consent to the terms and conditions of the Consent Decree
as set forth above and consent to the entry thereof.
Defendants waive any rights that may arise under the
Equal Access to Justice Act, 28 U.S.C. § 2412.
SCOTT R. LASSER
United States Attorney
Northern District of Illinois
Assistant United States Attorney
219 S. Dearborn St. 5th Floor
Chicago, IL 60604
FEDERAL TRADE COMMISSION
DAVID MEDINE, Associate Director
for Credit Practices
LUCY MORRIS, Assistant Director
for Credit Practices
LAUREN B. STEINFELD
SUSAN M. CAMP STOCKS
Division of Credit Practices
Bureau of Consumer Protection
Washington, D.C. 20580
BONLAR LOAN CO., INC.
LARRY METNICK, President
Bonlar Loan Co., Inc.
LARRY METNICK, Individually
HENRY T. KELLY
Counsel for Defendant
O'Keefe, Ashenden, Lyons & Ward
30 North LaSalle, Suite 4100
Chicago, IL 60602
|ISABELLE M. THABAULT
GAVIN C. DOWELL
Housing and Civil Enforcement Section
Civil Rights Division
U.S. Department of Justice
P.O. Box 65998
Washington, D.C. 20035