dated April 10, 1972, Griffith L. Garwood, 4 CCH Consumer Credit Guide, para. 30,834, and Federal Reserve letter dated June 23, 1969, Milton W. Schober, 4 CCH Consumer Credit Guide, para. 30,404.
A distinction must be made between that type of charge, which is conditional in that it hinges on employment of an outside source to effectuate collection, and the type of charge herein involved, which is conditional only in the respect that it comes into operation at the election of the seller. In the former case, the charge is undeterminable and contingent, while in the latter, although it is not self-effecting, the charge is determinable and effective at the election of the seller.
It seems to the Court that it is exactly this type of disclosure that the Truth-In-Lending Act was intended to require in order to insure that consumers would have information concerning credit terms so that they could effectively choose between sources of financing to compare more readily the various credit terms available to them. See 15 U.S.C. § 1601. It seems to this Court that the reasoning in the Garza decision has application to the instant case and that the Garza decision is authoritative.
Inasmuch as there can be no multiple recoveries for multiple Truth-In-Lending violations, it is unnecessary at this time to determine whether the other allegations contained in the Amended Complaint constitute a violation of the Truth-In-Lending Act.
From the pleadings there is no dispute but what the finance charges amounted to $731.63. Under the statute plaintiff is entitled to recover double the financing charges but in no event more than $1000.00, 15 U.S.C. 1640(a). This sum will be awarded against the dealer, McCrackin-Sturman. Any award against Ford Motor Credit Company must be under § 1640(d), as the subsequent assignee of the document. But still plaintiff is entitled to but one recovery. But if unable to collect from the dealer, evidence must be adduced to show Ford Motor Credit Company is liable under 1640(d). Costs will follow the judgment as a matter of course, but in the event the parties cannot agree, they will be heard on the amount of counsel fees to be awarded plaintiff. The following order is appropriate at this stage.
And now, May 23, 1974, it is directed that:
1. Plaintiffs' motion for summary judgment against McCrackin-Sturman Ford is granted, and judgment is directed in plaintiffs' favor in the sum of $1000.00, together with costs and counsel fees;