Eximil Sales Co., Inc

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TN rin MArrer or ENIMIL SALES CO., INC, kT AN.

CONSEN'P ORDER, WPC., IN REGARD TO THE ALLEGED VIOLATION OF THE TRUTH IN LENDING AND TIE FEDERAL TRADE COMALISSION ACTS Docket C-1850 Complaint, Jan. £4, 1971—Decision, Jan. G4, 1971 Consent order requiring a Brooklyn, N.Y.; seller of furniture and electrical appliances to cease violating the Truth in Lending Act by failing to make required cost disclosures to customers before sales were completed, failing to identify the creditor in credit transactions, and failing to disclose to customers the annual percentage rate in credit transactions. : Complaint Pursuant to the provisions of the Truth in Lending Act and the implementing regulation promulgated thereunder, and the Federal Trade Cemmission Act, and by virtue of the authority vested in it by said Acts, the Federal Trade Commission, having reason to be- Have that Eximil Sales Co. Inc. a corporation and Exio Domingues, Individually and as an officer of said corporation, hereinafter referred to as respondents, have violated the provisions of said Acts and regniation, and if appearing to the Commission that 2 proceedreof would be in the public interest a seredy issues its complaint stating its charges in that re espect a as folloy 1. Respondent xinul Sales Co., Ine., is a corpo: vation ing by it in respect the } i & ving business under and by virtue of the EXIMIL SALES CO., INC., ET AL. 61 60 ‘Complaint laws of the State of New York, with its principal office and piace of business located at 187-189 Graham Avenue, Brooklyn, New York. Respondent, Exio Dominguez is the president of the corporate respondent. He formulates, directs and controls the policies, acts and practices of the corporate respondent, including the acts and practices hereinafter set forth. His address is the same as that of the corporate respondent.

Par. 2. Respondents are now, and for some time last past have been, engaged in the sale of furniture and electrical appliances to the public, and in the purchase of consumer credit accounts receivable from itinerant peddlers.

Par. 3. In the ordinary course and conduct of their business, as aforesaid, respondents reeularly extend and arrange for the extension of consumer credit, as “consumer credit” is defined in Regulation Z, the implementing regulation of the Truth in Lending Act, duly promulgated by the Board of Governors of the Federal Reserve System.

Par. 4. Subsequent to July 1, 1969, in the ordinary course of their business as aforesaid respondents have caused and are causing their customers to enter into contracts for the sale of vespendents’ goods, hereinafter referred to as “the contract.” Respondents provide these customers with no evidence of or information concerning transactions, other than on the contract.

Par. 5. By and through the use of the retail credit contract: set forth in Paragraph Four, respondents have: 1. Failed to make disclosures to customers prior to consummation of the transaction, as required by Section 226.5(a) of Regulation Z. 2. Failed to identify the creditor in any credit transaction, as required by Section 226.8(a) of Regulation Z. 3. Failed to disclose the annual percentage rate with an accuracy at least to the nearest quarter of one percent, in accordance with Section 226.5 of Regulation Z, as required by Section 226.8(b) (2) of Regulation Z.

Par. 6. Pursuant to Section 103(k) of the Truth in Lending Act, respondents’ aforesaid failures to comply with the provisicns of Regulation Z constitute violations of that Act and, pursuant to Seetion 108 thereof, respondents have thereby violated the Federal ' Trade Commission Act.

Decision AND ORDER The Commission having heretofore determined to issue its complaint charging respondents named in the caption hereof with violation of the Federal Trade Commission Act, the Truth in Lending Decision and Order 78 F.TC.

Act and the implementing Regulation promulgated thereunder, and respondents 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 Respondents and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by respondents 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 respondents that the law has been violated as alleged in such complaint, and waivers and other provisions as required by the Commission’s Rules; 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 (30) days, now in further conformity with the procedure prescribed in Section 2.34(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 Eximil Sales Co., Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York, with its principal office and place of business located at 187-189 Graham Avenue, in the County of Kings, New York, New York.

Respondent Exio Dominguez is the president of said corporation. He formulates, directs and controls the policies, acts and practices of said corporation and his address is the same as that of said corporation.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents, and the proceeding is in the public interest.

ORDER It is ordered, That respondents Eximil Sales Co., Inc., a corporation, and its officers, and Exio Dominguez, individually and as an officer of said corporation, and respondents’ agents, representatives, and employees, directly or through any corporate or other device, in connection with any extension or arrangement for the extension of consumer credit, as “consumer credit” is defined in Regulation Z (12 CFR Part 226) of the Truth in Lending Act (Public Law 90-321, 15 U.S.C. 1601 e¢ seg.) , do forthwith cease and desist from: 1. Failing to make disclosures to customers prior to consum- GOLDEN GRAIN MACARONI CO., ET AL. 63 60 ; Complaint mation of the transaction, as required by Section 226.8(a) of Regulation Z.

2. Failing to identify the creditor in any credit transaction, as required by Section 226.8(a) of Regulation Z. 3. Failing to disclose the annual percentage rate with an accuracy at least to the nearest quarter of one percent, in accordance with Section 226.5 of Regulation Z, as required by Section 226.8(b) (2) of Regulation Z. 7 tis further ordered, That respondent deliver a copy of this order to cease and desist to all present and future personnel of respondents engaged in the consummation of any extension of consumer credit: or in any aspect of preparation, creation, or placing of advertising, and that respondent secure a signed statement acknowledging receipt of said order from each such person. [tis further ordered, That. respondents notify the Commission at least thirty (30) days prior to any proposed change in the corporate respondent, such as dissolution, assignment or sale resulting in the emergence of a successor corporation, the creation or dissolution of subsidiaries or any other change in the corporation which may affect compliance obligations arising out of the order. ft is further ordered, That each respondent shall, within sixty (60) days after service upon them of this order, file with the Commission a report in writing, setting forth in detail the manner and form in which they have complied with the order to cease and desist contained herein.