Ford Motor Credit Co. v. Cenance, 452 U.S. 155 (1981)

Ford Motor Credit Co. v. Cenance

No. 80-1205

Decided June 1, 1981
452 U.S. 155

ON PETITION FOR WRIT OF CERTIORARI TO THE UNITED STATES

COURT OF APPEALS FOR THE FIFTH CIRCUIT

Syllabus

Held:

1. Under pertinent provisions of the Truth in Lending Act, 15 U.S.C. § 1601 et seq., and an implementing regulation, petitioner company, as the assignee from automobile dealers of retail installment contracts, is a creditor within the meaning of the Act. Although each dealer arranged for the extension of credit to the automobile buyer, petitioner actually extended the credit. The sales were contingent upon petitioner’s approval of the buyer’s credit worthiness, and the dealer’s acceptance of the sales contract and the assignment to petitioner became operational simultaneously, the assignment divesting the dealer of any risk in the transaction.

2. A statement on the retail installment contracts notifying the buyer that the contract was "assigned to [petitioner] in accordance with the terms of the Assignment set forth on the reverse side hereof," is a sufficient disclosure of petitioner’s creditor status for purposes of the Act.

Certiorari granted in part; 621 F.2d 130, affirmed in part and reversed in part.