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Show Sen. Moss Co-sponsors Bill To Pinpoint Cost of Credit 1 1 serve Board which show con-i con-i sumer installment credit at an t all time high in November of i over $38 billion, up $5.4 billion : in a year. "Many economists fear such an Senator Frank E. Moss of Utah announced Thursday that he is co-sponsoring a bill to require oersons selling consumer goods on credit to make clear to the purchaser both the rate of interest in-terest he is paying and the total financing charge for the life of amount of outstanding installment install-ment credit is a threat to economic eco-nomic stability," the Senator continued. "It is my hope that unsound credit buying will be voluntarily curtailed when purchasers pur-chasers realize what it is costing them. A law such as this is much more desirable than the actual controls on consumer credit that some are seriously advocating," he said. The proposed law provides: "Any person engaged in the business of extending credit shall furnish a clear statement in writing 1) setting forth the total amount of the finance charges, and 2) stating the percentage that such amount bears to the outstanding principal obligation, or unpaid balance, expressed in terms of simple annual interest." The board of Governors of the Federal Reserve Board would issue the rules and regulations prescribing the form of such statement. Senator Moss said. the contract. "The real costs of buying on time are often much higher than purchasers realize. Many are paying higher charges than they need to, and higher than they would be willing to pay if the facts were realized. Often they are told only what the monthly payments are and have no idea what interest, fees, and other financing charges actually are. Purchasers can, of course, always al-ways find out what the total charges are. But I believe this information should be set forth so clearly that there will be no misunderstanding," he said. "This is not a credit control bill," the Senator emphasized. "It will leave buyer and seller free to make any agreement on terms of payment that suit the parties and conforms with local laws," he said. Sen. Moss pointed to figures lust released by the Federal Re- |