Salt Lake Telegram | 1942-05-06 | Page 4 | U. S. Tightens Credit Rules

UI u. U S Si 81 TIGHTENS CREDIT RULES Continued from Page One whether bought on regular charge J f accounts or on the installment plan Hits Charge Accounts It was the first time that ordinary nary charge accounts were touched by board regulations If an item on on the restricted list is charged it must be paid for by the loth day of the second month after the purchase or the customers customer's credit must be shut off on all listed articles ar- ar The penalty may be avoided avoided avoided avoid avoid- ed however if the merchant and customer are willing to sign an agreement to clean up the tho debt in fixed installments during the following six months As to installment credit the new requirements are for larger down payments and shorter time to pay the balance On most items the rule is third one-third down and a year to pay except that the monthly payment must be at least 5 even if that shortens the payment time Wider Vider List of Articles Both the new charge account and Installment credit rules apply to toa toa a B. wider list of articles than ever was covered by previous regulations regulations regulations regula regula- for installment credit alone Added to the list of restricted items items' were such categories as all nonmilitary clothing luggage sports and game equipment all table and kitchen ware automobile appliances yard goods and used furniture These items were added added added add add- ed to former lists which already included new furniture clocks radios radios radios ra ra- ra- ra dios refrigerators vacuum cleaners cleaners cleaners clean clean- ers stoves musical instruments silverware and plumbing fixtures Cash loans under 1500 from banks or other lenders also were held down to a maximum of 12 months to pay and in some cases 90 days Former rules applied only to cash loans to be repaid on the installment plan but the new regulation also applies to loans to tobe tobe tobe be repaid in lump sums Past last Purchases Apply In applying the new rule on charge accounts the board in effect effect effect ef ef- ef- ef counted past purchases of listed items as having been made Wednesday Unpaid accounts Involving in involving involving in- in listed articles now on store books must be cleaned up up-or up or in installment installment installment in- in terms arranged by July 10 The charge account rule allows between 40 and 70 days for pay pay- ment For instance articles bought boughton on June 1 June 15 or June 30 all become due on August 10 10 the lOth day of the second month after the month in which the purchase purchase purchase pur pur- chase was made Usual exceptions or extensions were granted for special cases including including in in- student loans emergency hospital expense loans credit to farmers and others with seasonal income and impoverished persons