Curtis Brothers, Inc

Text (OCR of the scan at left; may contain errors)

In toe Marrer or CURTIS BROTHERS, INC.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE TRUTH IN LENDING ACTS Docket C-1797. Complaint. Sept. 23, 1970—Decision, Sept. 23, 1970 Consent order requiring a Washington, D.C., distributor of furniture and other merchandise to cease violating the Truth in Lending Act by failing to state in terminology prescribed by Regulation Z the cash price of its furniture, the annual percentage rate of the finance charge, the deferred payment price, failing to inform customers whose homes are obligated as security that they have the opportunity to rescind such agreement, and failing to make other disclosures required. by Regulation Z. ComMPLaINntT Pursuant to the provisions of the Truth in Lending Act and the regulations promulgated thereunder, and the Federal Trade Commission Act, and by virtue of the authority vested in it by said Acts, the Federal Trade Commission, having reason to believe that Curtis Brothers, Inc., a corporation, hereinafter referred to as respondent, has viclated the provisions of said Acts and regulations, and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest, hereby issues its complaint stating its charges in that respect as follows: Paracrari 1. Respondent Curtis Brothers, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Delaware, with its principal office and place of business located at Nichols Avenue at V Street, S.E., Washington. D.C.

Par. 2. Respondent is now, and for some time last past has been,

Decision and Order U7 E.T.C.

containing a confession of judgment clause (cognovit note provision), hereinafter referred to as the note. By and through the use of the note a security interest is or will be retained or acquired in real property which is used or expected to be used as the principal residence of the respondent’s customers. Respondent’s retention or acquisition of said security interest in said real property entitles its customers to the right to rescind that transaction until midnight of the third business day following the consummation of that transaction or the date of delivery of all the disclosures required by Regulation Z, whichever is later. Respondent has failed and is failing to provide its customers with the required notice of opportunity to rescind specified in Section 226.9(b) of Regulation Z.

Par. 7. By the aforesaid failure to make the disclosures in the agreements, periodic statements, and notes in the manner and form required by Regulation Z as set forth in Paragraph Four, Paragraph Five and Paragraph Six hereof, respondent has failed to comply with the requirements of Regulation Z, duly promulgated by the Board of Governors of the Federal Reserve System pursuant to Section 105 of the Truth in Lending Act. Pursuant to Section 108(c) thereof, respondent thereby violated the Federal Trade Commission Act.

Decision and Orver The Commission having heretofore determined to issue its complaint charging respondent named in the caption hereof with violation of the Federal Trade Commission Act, the Truth in Lending Act and the implementing Regulation promulgated thereunder, and respondent having been served with notice of said determination and with a copy of the complaint the Commission intended to issue, together with a proposed form of order; and Respondent and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by respondent of all the jurisdictional facts set forth in the complaint to issue herein, a statement that the signing of said agreement is for settlement purposes only and does not constitute an admission by respondent that the law has been violated as alleged in such complaint, and waivers and other provisions as required by the Commission’s Ruies; and .

The Commission having considered the agreement and having accepted same, and the agreement containing consent order having thereupon been placed on the public record for a period of thirty CURTIS BROTHERS, INC. 1269 1265 Decision and Order (30) days, now in further conformity with the procedure prescribed in. Section 2.384(b) of its Rules, the Commission hereby issues its complaint in the form contemplated by said agreement, makes the following jurisdictional findings, and enters the following order: 1. Respondent Curtis Brothers, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Delaware, with its principal office and place of business located at Nichols Avenue at V Street, S.E., Washington, D.C. 2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent, and the proceeding is in the public interest.

ORDER It is ordered, That respondent Curtis Brothers, Inc., a corporation, and its officers, and respondent’s agents, representatives and employees, directly or through any corporate or other device, in connection with any consumer sale of furniture or any other merchandise or service, as “credit sale” is defined in Regulation Z (12 CFR Part 226) of the Truth in Lending Act (Public Law 90-321, 15 U.S.C. 1601 et seg.), do forthwith cease and desist from: 1. Failing to print the terms “annual percentage rate” and. “finance charge,” where required by Regulation Z to be used, more conspicuously than other required terminology, as set forth in Section 226.6(a) of Regulation Z.

2. Failing to disclose, where one or more periodic rates may be used to compute the finance charge, each such rate, using the term “periodic rate” (or “rates”), the range of balances to which each rate is applicable, and the corresponding annual percentage rate determined by multiplying the periodic rate by the number of periods in a year, as required by Section 226.7(a) (4) of Regulation Z.

3. Failing to employ the term “previous balance” to describe the outstanding balance in the customer’s account at the beginning of the billing cycle, as required by Section 226.7(b) (1) of Regulation Z.

4. Failing to employ the term “payments” to describe the amounts credited to the customer’s account during the billing cycle for payments, as required by Section 226.7(b) (8) of Regulation Z.

5. Failing to employ the term “credits” to describe credits other than payments credited to the customer’s account during the billing cycle, as required by Section 226.7(b) (3) of Regulation Z.