Salt Lake Telegram | 1941-10-09 | Page 4 | U. S. Studies Further Time Buying Restrictions

iU U. U S. S Studies Further Time Buying g Restrictions Restriction WASHINGTON Oct 9 An ti-An- P Another An- An I other twist on the screws holding down consumer installment credit appeared to be imminent Thursday Thurs Thurs- day Authoritative indications from federal reserve board were that minimum down payments might be increased and maximum time tim timeto to pay the balance might be reduced re re- on some articles The reserve board was said to be studying this question earnestly and getting ready for a decision within he next 10 days The present regulations apply only to installment purchases of 24 types of goods ranging from both new and used automobiles to new furniture and radios The rules specify what percentage of the purchase price should be paid down for down for instance 33 3 1 per centon cent centon on automobiles and 10 per cent centon on furniture and how long a time should be allowed to pay the balance balance 18 18 months in each case under present rules One change being studied would plug up what some officials consider consider consider con con- sider a loophole in the down payment payment payment pay pay- ment rules The present regulations permit a person to borrow the price of a new car or other art artl J from a bank or finance compa compaSS and then to escape the down pay pays nav ment restriction by paying thIl that cash to the dealer or merchant The board may require bank banks and others others' who make cash loan loam to get written promises from bor rowers that the loans will not b b bused used to evade the down payment t rules t J