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In settlement of alleged violations of federal law prohibiting unfair or deceptive acts or practices and unfair methods of competition, this consent agreement, accepted subject to final commission approval, would require, among other things, the Georgia-based money lender and its president to send a notice to all of its current customers offering them the opportunity to cancel the credit-life, credit-disability, and accidental death and disbursement insurance coverages written on their loans, and to receive cash refunds or credits. The agreement also prohibits Money Tree and Martin from requiring consumers to sign statements that credit-related insurance or auto club memberships are voluntarily purchased if these extras are, in fact, required to obtain the loan. The complaint accompanying the consent agreement alleges that Money Tree required consumers to purchase credit-related insurance and auto club memberships (thus substantially increasing the cost of their loans) but failed to disclose to consumers the true cost of their credit, in violation of the Truth in Lending Act and the Federal Trade Commission Act.
