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of principal and/or would finance the purchase over a shorter
repayment term.
In 1993 and 1994, ACC paid installment contracts
expenditures totaling $267,832 and $339,211, respectively. These
expenditures, which were attributable to ACC’s obtaining of
credit reports and screening of credit histories, related
primarily to the portion of ACC’s payroll and overhead expenses
that was attributable to its credit analysis activities.6 None
of these expenditures included any postacquisition or servicing
expenses. ACC ascertained the amount of these expenditures at
the request of its independent auditors. The parties agree that
these expenditures are “related” to ACC’s credit analysis
activities and that the breakdown of specific expenditures is as
set forth below. The parties dispute whether any or all of the
expenditures is “directly related” to ACC’s credit analysis
activities, as contended by respondent, or is “indirectly
related” to those activities, as contended by petitioners.
6 We use the term “credit analysis activities” to refer to
ACC’s credit review services and its funding services (i.e.,
ACC’s issuance of the checks to dealers in consideration for the
installment contracts).
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Last modified: May 25, 2011