Colman & Riddell, Inc

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

In roe Marrer oF COLMAN & RIDDELL, INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE TRUTH IN LENDING ACTS Docket C-2325. Complaint, Nov. 30, 1972—Decision Nov. 30, 1972 Consent order requiring three Seattle, Washington, real estate agents, among other. things to cease violating the Truth in Lending Act by failing to disclose to consumers, in connection with the extension of consumer credit, such information as required by Regulation Z of the said Act. 896: FEDERAL: TRADE’ COMMISSION DECISIONS Complaint: 81 F.T.C:

‘COMPLAINT.

Pursuant: to. the. provisions of. -the Truth i in Lending Act and the implementing regulation: promulgated. thereunder and the Federal Trade Commission Act, and by virtue of the authority vested i in it by said Acts, the Federal Trade Commission, having reason. to believe . that Colman & Riddell, Inc., Cape George Village, Inc. , corporations, and Birch Bay Investors, a. limited partnership, and. Howard G. Riddell and. V. Keith Colman, individually, as officers of said corporations, and as general partners in Birch. Bay Investors, hereinafter referred to, as. respondents, have violated the, provisions of said, Acts and implementing. regulation, 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: | -Paragrary 1. Respondent Colman & Riddell, Inc, is a; a. corporation. organized, existing. and doing. business under. and. by virtue of the laws of the State of Washington with its office and. principal place of. business located at 333 Taylor North, Suite 201, Seattle, Washington. _ Cape George, Village, Inc., is a corporation organized, existing, and. doing business under and by virtue of the laws of the State of -Wash-. ington. with its office and principal place of business located at 333 Taylor North, Suite 201, Seattle, Washington. Birch Bay Investors is a limited partnership existing and doing business in the State of Washington. Its office and principal place of business is located at 333 Taylor North, Suite 201, Seattle, Washington.

Respondents Howard G. Riddell and V. Keith Colman are officers of the corporate respondents and are the only general partners in the respondent partnership Birch Bay Investors. They jointly formulate, direct and control the policies, acts and practices of the corporate respondents and the respondent partnership, including the acts and practices hereinafter set forth. Their 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 to the public of parcels of land located within land developments and the advertising of same in various media. Par. 3. In the ordinary course of their business as aforesaid, respondents Colman & Riddell, Inc., Howard G. Riddell, and V. Keith Colman arrange and have arranged for the extension of consumer credit, as “consumer credit” and “arrange for the extension of consumer credit” are defined in Regulation Z, the implementing regula- “COLMAN: & RIDDELL, INC., ET AL. - 897 895 Complaint tion of the Truth in Lending Act, duly promulgated by the Board of Governors of the Federal Reserve System.

In the ordinary course of their business as aforesaid, respondents Cape George Village, Inc., Birch Bay Investors, Howard G. Riddell, and V. Keith Colman regularly extend and have extended 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. Se Par. 4. Subsequent to J uly 1, 1969, in the ordinary course of their - business as aforesaid, and in connection with credit sales, as “credit sales” is defixied in Regulation Z, respondents Colman & Riddell, Inc., Howard G. Riddell, and V. Keith Colman have provided and are offering to provide consumer credit which is or will be extended by another person, as “person” is defined in Section 226.2(v) of Regulation Z, through the consummation of credit sale contracts for the sale of parcels of land. During the same period of time and in the ordinary course of their business as aforesaid, and in connection with credit sales, as.“credit..sale” is. defined in. Regulation Z, respondents: Cape George Village, Inc., Birch Bay Investors, Howard G. Riddell, and V. Keith Colman have entered into and are entering into credit sale contracts for the sale of parcels of land. On the contracts referred to hereinabove in this paragraph, hereinafter referred to as “the contract,” respondents have provided certain limited consumer credit cost information, but have not provided the credit buyers with substantially all of the disclosures required by Sections 226.6 and 226.8 of Regulation Z. More particularly, respondents have: 1. Failed in credit sales to disclose accurately the price at which respondents, in the regular course of business, offered to sell for cash the said parcels of land which were the subject of the credit sale and to use the term “cash price” to describe that price, as required by Section 226.8(c) (1) of Regulation Z.

2. Failed to use the term “cash downpayment” to describe the downpayment in money made in connection with the credit sale, as required by Section 226.8(c) (2) of Regulation Z.

3. Failed to disclose the difference between the “cash price” and the downpayment and to use the term “unpaid balance of cash price” to describe that amount as required by Section 226.8(c) (3) of Regulation Z.

4. Failed to disclose the amount of credit extended, and to describe that amount as the “amount financed” as required by Section 226.8 (c) (7) of Regulation Z.

5. Failed to disclose the sum of all charges which are required by Section 226.4 of Regulation Z to be included in the finance charge x Decision and Order 81 B.TC.

and to use the term “finance charge” to deséribe that usual, as: required by Section 226.8(c) (8) (i) of Regulation Z. 6. Failed to. disclose the sum of ‘the cash price, all charges which are included inthe amount financed but which are not: part of the . finance charge, and the finance charge, and-to describe that sum. as the “deferred payment Price,” as: required by: Section: 296. 8(c) (8) ( )4 1 3 2 5 0 781 882 309 44 -1 5 1 3 2 5 1 781 882 40 33 96.305367 of5 1 3 2 5 2 832 884 215 42 25.139206 Regulation:5 1 3 2 5 3 1053 886 37 32 4.901505 Z:3 1 3 3 0 0 779 907 1326 176 -1 4 1 3 3 1 0 823 907 1282 86 -1 5 1 3 3 1 1 823 936 29 33 95.188133 7.5 1 3 3 1 2 871 938 124 33 95.802254 Failed5 1 3 3 1 3 1010 941 37 29 96.990738 to5 1 3 3 1 4 1064 938 143 34 97.002754 discloses 1 3 3 1 5 1222 941 60 31 96.965805 thes 1 3 3 1 6 1297 910 148 64 92.696449 “annual5 1 3 3 1 7 1457 908 208 85 55.785545 percentages 1 3 3 1 8 1674 911 110 74 89.063782 rate,”5 1 3 3 1 9 1801 907 171 84 79.643227 computed5 1 3 3 1 10 1993 925 14 26 70.231750 i5 1 3 3 1 11 1999 953 36 25 77.610573 in5 1 3 3 1 12 2047 956 58 22 77.610573 ac-4 1 3 3 2 0 780 987 1324 86 -1 5 1 3 3 2 1 780 987 167 34 96.307289 cordance5 1 3 3 2 2 963 989 86 32 96.827209 with5 1 3 3 2 3 1068 987 141 39 90.502449 Section:5 1 3 3 2 4 1224 993 92 30 90.502449 226.55 1 3 3 2 5 1336 988 33 36 67.820381 of5 1 3 3 2 6 1375 987 225 83 44.816391 “Regulations 1 3 3 2 7 1618 995 37 40 66.158913 Zi5 1 3 3 2 8 1672 1005 46 22 52.453712 as:5 1 3 3 2 9 1703 1050 2 2 40.240894 *5 1 3 3 2 10 1732 995 155 73 82.619087 required5 1 3 3 2 11 1896 995 64 78 92.101578 by5 1 3 3 2 12 1962 991 142 73 94.411011 Section4 1 3 3 3 0 779 1038 573 45 -1 5 1 3 3 3 1 779 1034 223 49 34.707932 226.8(b)(2)5 1 3 3 3 2 1017 1034 53 38 96.529701 of5 1 3 3 3 3 1072 1041 216 42 92.582214 Regulations 1 3 3 3 4 1294 1043 58 32 29.728165 Z;5 1 3 3 3 5 1340 1030 15 57 51.639805 «3 1 3 4 0 0 767 1058 1338 133 -1 4 1 3 4 1 0 821 1058 1284 108 -1 5 1 3 4 1 1 821 1091 37 30 89.794922 8..5 1 3 4 1 2 868 1089 131 33 62.116589 Failed5 1 3 4 1 3 1007 1094 37 29 62.116589 to5 1 3 4 1 4 1059 1091 143 34 91.454506 discloses 1 3 4 1 5 1217 1092 60 33 97.013321 thes 1 3 4 1 6 1291 1059 144 81 96.176895 numbers 1 3 4 1 7 1446 1063 50 64 96.721390 of5 1 3 4 1 8 1504 1059 181 83 87.374191 paythents5 1 3 4 1 9 1693 1058 180 82 4.729980 tequired.5 1 3 4 1 10 1873 1094 159 46 78.126442 to'repay5 1 3 4 1 11 2042 1099 63 67 97.008850 thea 1 3 4 2 0 767 1138 1250 53 -1 5 1 3 4 2 1 767 1138 261 45 62.713531 ‘indebtedness,5 1 3 4 2 2 1037 1152 47 22 95.470001 as5 1 3 4 2 3 1091 1142 159 43 95.470001 required5 1 3 4 2 4 1258 1133 48 53 96.286385 by5 1 3 4 2 5 1317 1135 145 43 45.284275 Sections 1 3 4 2 6 1468 1142 73 37 45.284275 226.5 1 3 4 2 7 1543 1143 89 45 92.181808 8(b)5 1 3 4 2 8 1638 1146 53 45 92.081909 (8)5 1 3 4 2 9 1708 1145 49 35 95.598640 of5 1 3 4 2 10 1760 1148 211 42 93.257736 Regulations 1 3 4 2 11 1981 1150 36 32 89.669403 Z.3 1 3 5 0 0 776 1170 1327 170 -1 4 1 3 5 1 0 798 1170 1305 72 -1 5 1 3 5 1 1 798 1193 51 29 8.963432 9,5 1 3 5 1 2 865 1191 123 34 95.911499 Failed5 1 3 5 1 3 999 1195 46 29 96.654190 to5 1 3 5 1 4 1051 1189 144 37 95.332222 discloses 1 3 5 1 5 1204 1194 61 33 95.332222 thes 1 3 5 1 6 1276 1191 78 36 93.290977 sums 1 3 5 1 7 1364 1196 40 32 93.290977 of5 1 3 5 1 8 1417 1196 62 32 96.988525 thes 1 3 5 1 9 1486 1200 182 46 93.278732 payments5 1 3 5 1 10 1677 1195 236 36 56.221966 scheduled'to5 1 3 5 1 11 1924 1205 113 37 84.617325 repay5 1 3 5 1 12 2042 1170 61 63 96.965660 thea 1 3 5 2 0 777 1237 1325 85 -1 5 1 3 5 2 1 777 1237 248 46 86.734169 indebtedness,5 1 3 5 2 2 1043 1244 75 31 14.979370 ands 1 3 5 2 3 1126 1247 38 29 14.979370 to5 1 3 5 2 4 1181 1244 160 34 41.478210 describes 1 3 5 2 5 1348 1242 169 37 41.478210 that:sums 1 3 5 2 6 1533 1259 37 21 91.699646 ‘as5 1 3 5 2 7 1585 1247 63 34 96.949997 thes 1 3 5 2 8 1660 1248 106 33 91.306839 “totals 1 3 5 2 9 1783 1250 51 32 66.316566 of:5 1 3 5 2 10 1832 1254 195 68 93.215088 payments,5 1 3 5 2 11 2024 1251 23 17 44.519733 ”5 1 3 5 2 12 2065 1262 37 21 92.695564 as4 1 3 5 3 0 776 1291 943 62 -1 5 1 3 5 3 1 776 1291 162 62 95.941078 required5 1 3 5 3 2 947 1291 64 44 96.781853 by5 1 3 5 3 3 1012 1292 145 35 96.397522 Sections 1 3 5 3 4 1164 1292 71 35 57.428619 226.85 1 3 5 3 5 1238 1292 84 46 57.428619 (b)5 1 3 5 3 6 1333 1296 68 44 88.744347 (3)5 1 3 5 3 7 1403 1297 46 32 71.604134 ‘of5 1 3 5 3 8 1461 1298 212 42 54.469028 Regulations 1 3 5 3 9 1680 1300 39 32 54.469028 Z.3 1 3 6 0 0 772 1322 1328 314 -1 4 1 3 6 1 0 796 1322 1304 86 -1 5 1 3 6 1 1 796 1341 105 34 3.545769 Par.5 1 3 6 1 2 918 1346 33 30 87.964989 5.5 1 3 6 1 3 971 1343 176 34 96.364006 Pursuant5 1 3 6 1 4 1161 1349 40 29 94.644554 to5 1 3 6 1 5 1221 1344 147 36 31.574203 Section:5 1 3 6 1 6 1376 1348 134 44 31.574203 103(q)5 1 3 6 1 7 1526 1349 44 32 96.947838 of5 1 3 6 1 8 1582 1349 62 33 93.452789 thes 1 3 6 1 9 1654 1349 145 34 93.452789 Truth:5 1 3 6 1 10 1790 1362 38 21 96.459686 in5 1 3 6 1 11 1845 1323 159 85 96.424286 Lending5 1 3 6 1 12 2020 1322 80 72 95.731575 Act,4 1 3 6 2 0 776 1394 1323 52 -1 5 1 3 6 2 1 776 1394 234 41 96.533447 respondents’5 1 3 6 2 2 1024 1395 173 33 96.852394 aforesaid5 1 3 6 2 3 1210 1397 145 34 97.003738 failures5 1 3 6 2 4 1367 1395 36 36 96.994431 to5 1 3 6 2 5 1416 1395 137 47 87.757462 comply5 1 3 6 2 6 1564 1400 86 33 96.345100 with5 1 3 6 2 7 1660 1401 59 33 96.777435 thes 1 3 6 2 8 1730 1401 194 42 94.291298 provisions5 1 3 6 2 9 1928 1403 47 32 92.792480 of5 1 3 6 2 10 1986 1404 113 42 92.792480 Regu-4 1 3 6 3 0 771 1443 1328 53 -1 5 1 3 6 3 1 771 1443 114 33 68.091187 lations 1 3 6 3 2 898 1445 26 31 91.096664 Z5 1 3 6 3 3 937 1443 195 36 93.721924 constitutes 1 3 6 3 4 1131 1443 197 38 0.000000 violations:5 1 3 6 3 5 1334 1446 50 35 0.000000 of5 1 3 6 3 6 1383 1449 82 33 96.621895 that5 1 3 6 3 7 1476 1451 71 31 93.519135 Acts 1 3 6 3 8 1556 1452 82 40 95.670006 and;5 1 3 6 3 9 1649 1446 174 47 96.347580 pursuant5 1 3 6 3 10 1834 1456 41 29 96.347580 to5 1 3 6 3 11 1885 1449 146 38 95.809174 Section:5 1 3 6 3 12 2037 1456 62 40 96.730118 1084 1 3 6 4 0 772 1489 1326 90 -1 5 1 3 6 4 1 772 1489 148 53 89.643776 thereof,5 1 3 6 4 2 931 1490 235 85 83.212944 respondents5 1 3 6 4 3 1183 1499 87 32 96.763634 have5 1 3 6 4 4 1275 1500 169 74 81.169098 ‘thereby:5 1 3 6 4 5 1446 1493 157 81 85.384819 Violated5 1 3 6 4 6 1615 1492 76 58 90.298798 the.5 1 3 6 4 7 1687 1497 154 82 71.769119 ‘Federal5 1 3 6 4 8 1853 1519 20 53 75.999184 *5 1 3 6 4 9 1864 1498 123 69 93.887421 Trade:5 1 3 6 4 10 1991 1494 107 78 87.611832 Com:4 1 3 6 5 0 768 1541 369 71 -1 5 1 3 6 5 1 768 1541 146 51 95.039864 missions 1 3 6 5 2 912 1546 112 66 59.648026 Act.5 1 3 6 5 3 1100 1557 37 2 27.021225 me4 1 3 6 6 0 1013 1565 631 84 -1 5 1 3 6 6 1 1013 1603 2 2 37.082420 :5 1 3 6 6 2 1208 1620 3 4 18.809494 :5 1 3 6 6 3 1196 1613 3 5 0.000000 “5 1 3 6 6 4 1227 1565 181 69 0.000000 Decrsitow.5 1 3 6 6 5 1427 1596 67 53 60.262074 ANDS 1 3 6 6 6 1517 1615 2 2 20.628494 >5 1 3 6 6 7 1504 1570 140 66 0.000000 Orpen2 1 4 0 0 0 759 1683 1343 1016 -1 3 1 4 1 0 0 767 1683 1329 349 -1 4 1 4 1 1 0 812 1683 1284 49 -1 5 1 4 1 1 1 812 1683 77 32 88.797951 ‘Thes 1 4 1 1 2 898 1683 230 33 95.221985 Commissions 1 4 1 1 3 1139 1685 132 43 96.862930 having5 1 4 1 1 4 1281 1686 193 33 96.379623 heretofore5 1 4 1 1 5 1484 1688 211 42 96.510712 determined5 1 4 1 1 6 1705 1692 39 30 94.407364 to5 1 4 1 1 7 1752 1689 90 42 94.407364 issues 1 4 1 1 8 1852 1689 46 42 96.625092 its5 1 4 1 1 9 1907 1691 189 41 96.479095 complaint4 1 4 1 2 0 770 1733 1325 48 -1 5 1 4 1 2 1 770 1733 171 43 96.423264 charging5 1 4 1 2 2 955 1735 59 32 96.951851 thes 1 4 1 2 3 1031 1736 223 42 88.185959 respondents5 1 4 1 2 4 1270 1737 124 42 90.118118 named5 1 4 1 2 5 1411 1737 37 32 96.773827 in5 1 4 1 2 6 1465 1738 58 32 96.270233 thes 1 4 1 2 7 1539 1738 140 43 96.194557 captions 1 4 1 2 8 1694 1740 117 32 96.194557 hereto5 1 4 1 2 9 1826 1740 87 39 96.874405 with5 1 4 1 2 10 1929 1741 166 33 96.694969 violation4 1 4 1 3 0 771 1782 1323 52 -1 5 1 4 1 3 1 771 1783 40 32 96.076416 of5 1 4 1 3 2 829 1784 59 32 96.792564 thes 1 4 1 3 3 907 1785 114 32 96.775818 Truth5 1 4 1 3 4 1039 1785 37 33 96.623085 in5 1 4 1 3 5 1094 1786 161 43 96.858719 Lending5 1 4 1 3 6 1272 1788 75 32 71.690666 Act.5 1 4 1 3 7 1360 1789 68 32 71.690666 ands 1 4 1 3 8 1446 1782 60 39 96.579674 thes 1 4 1 3 9 1527 1788 250 45 96.347496 implementing5 1 4 1 3 10 1802 1778 190 60 91.243355 regulations 1 4 1 3 11 2016 1803 78 31 91.243355 pro-4 1 4 1 4 0 769 1835 1326 49 -1 5 1 4 1 4 1 769 1835 178 42 91.541290 mulgated5 1 4 1 4 2 967 1836 217 42 96.819473 thereunder,5 1 4 1 4 3 1205 1839 69 31 96.391495 ands 1 4 1 4 4 1295 1839 60 32 96.328209 thes 1 4 1 4 5 1375 1839 146 33 96.721420 Federal5 1 4 1 4 6 1543 1841 114 32 95.893364 Trades 1 4 1 4 7 1674 1841 236 42 96.242325 Commissions 1 4 1 4 8 1924 1842 79 42 96.805458 Act,5 1 4 1 4 9 2025 1843 70 32 96.814674 anda 1 4 1 5 0 769 1886 1325 49 -1 5 1 4 1 5 1 769 1886 59 32 96.640823 thes 1 4 1 5 2 844 1887 224 41 96.235428 respondents5 1 4 1 5 3 1081 1887 132 43 96.262955 having5 1 4 1 5 4 1227 1889 83 32 97.013283 been5 1 4 1 5 5 1325 1890 119 41 96.885773 served5 1 4 1 5 6 1455 1890 89 33 97.002693 with5 1 4 1 5 7 1559 1888 111 36 96.990959 notices 1 4 1 5 8 1685 1893 39 31 97.002815 of5 1 4 1 5 9 1738 1892 76 32 96.764114 said5 1 4 1 5 10 1830 1893 264 42 96.705421 determination4 1 4 1 6 0 769 1937 1324 49 -1 5 1 4 1 6 1 769 1937 70 37 86.324898 ands 1 4 1 6 2 857 1937 85 32 94.865227 with5 1 4 1 6 3 960 1949 20 20 33.634026 a5 1 4 1 6 4 999 1949 86 32 33.634026 copy5 1 4 1 6 5 1105 1938 38 33 96.028000 of5 1 4 1 6 6 1160 1940 59 32 96.028000 thes 1 4 1 6 7 1237 1940 189 43 96.371582 complaints 1 4 1 6 8 1441 1942 59 32 96.869537 thes 1 4 1 6 9 1518 1941 227 34 96.481979 Commissions 1 4 1 6 10 1761 1943 164 34 96.721558 intended5 1 4 1 6 11 1940 1948 36 33 96.874084 to5 1 4 1 6 12 1993 1945 100 41 96.464424 issue,4 1 4 1 7 0 767 1988 830 46 -1 5 1 4 1 7 1 767 1989 158 41 96.409569 together5 1 4 1 7 2 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96.681129 a5 1 4 2 2 6 1488 2099 137 33 96.073235 consents 1 4 2 2 7 1645 2096 176 41 96.073235 order,5 1 4 2 2 8 1778 2086 44 58 95.248077 an5 1 4 2 2 9 1841 2097 186 38 95.248077 admissions 1 4 2 2 10 2044 2098 48 42 97.005974 by4 1 4 2 3 0 766 2137 1324 64 -1 5 1 4 2 3 1 766 2140 60 33 96.714561 thes 1 4 2 3 2 847 2137 223 64 96.894112 respondents5 1 4 2 3 3 1090 2142 40 32 96.460777 of5 1 4 2 3 4 1150 2143 47 32 96.773338 all5 1 4 2 3 5 1217 2143 60 33 96.390396 thes 1 4 2 3 6 1296 2143 254 44 96.661949 jurisdictional5 1 4 2 3 7 1570 2145 91 33 94.233391 facts5 1 4 2 3 8 1681 2150 49 38 94.233391 sets 1 4 2 3 9 1750 2147 127 35 78.000061 forth,5 1 4 2 3 10 1874 2158 32 30 91.865692 in5 1 4 2 3 11 1924 2148 59 32 91.865692 thes 1 4 2 3 12 2002 2160 88 29 91.550194 com-4 1 4 2 4 0 765 2190 1326 56 -1 5 1 4 2 4 1 765 2190 115 56 89.138550 plaints 1 4 2 4 2 895 2194 39 32 96.404060 to5 1 4 2 4 3 948 2191 89 33 95.856522 issues 1 4 2 4 4 1051 2192 129 42 93.221146 herein,5 1 4 2 4 5 1194 2205 23 21 59.846764 'a5 1 4 2 4 6 1233 2198 183 29 96.874153 statements 1 4 2 4 7 1429 2196 79 33 96.936317 that5 1 4 2 4 8 1522 2196 59 33 96.786285 thes 1 4 2 4 9 1596 2196 154 44 96.941246 signing5 1 4 2 4 10 1751 2198 41 32 96.994736 of5 1 4 2 4 11 1806 2198 75 32 96.586319 said5 1 4 2 4 12 1896 2203 195 39 96.265404 agreement4 1 4 2 5 0 763 2242 1329 46 -1 5 1 4 2 5 1 763 2241 30 33 97.008041 is5 1 4 2 5 2 810 2242 58 32 96.993462 for5 1 4 2 5 3 883 2235 194 41 93.404510 settlements 1 4 2 5 4 1093 2256 166 31 95.528221 purposes5 1 4 2 5 5 1277 2246 83 42 96.410736 only5 1 4 2 5 6 1374 2247 71 32 95.459045 ands 1 4 2 5 7 1463 2247 80 33 95.459045 does5 1 4 2 5 8 1560 2252 62 29 96.571892 not5 1 4 2 5 9 1639 2248 184 33 96.817986 constitutes 1 4 2 5 10 1839 2260 47 21 96.444153 an5 1 4 2 5 11 1903 2250 189 33 96.121185 admission4 1 4 2 6 0 766 2292 1324 50 -1 5 1 4 2 6 1 766 2292 46 42 96.731529 by5 1 4 2 6 2 837 2293 224 42 96.638008 respondents5 1 4 2 6 3 1085 2295 78 31 96.874069 that5 1 4 2 6 4 1186 2295 59 32 96.744728 thes 1 4 2 6 5 1268 2296 66 32 96.864632 laws 1 4 2 6 6 1357 2297 64 32 18.425949 has5 1 4 2 6 7 1445 2297 84 33 96.429810 been5 1 4 2 6 8 1552 2298 161 34 21.886208 violated.5 1 4 2 6 9 1727 2310 36 22 21.886208 as5 1 4 2 6 10 1785 2300 137 42 96.747894 alleged5 1 4 2 6 11 1946 2300 37 32 95.830994 in5 1 4 2 6 12 2006 2301 84 33 96.802910 such4 1 4 2 7 0 765 2339 1325 78 -1 5 1 4 2 7 1 765 2339 199 75 96.842384 complaint,5 1 4 2 7 2 980 2345 69 32 96.215591 ands 1 4 2 7 3 1064 2345 144 33 96.215591 waivers5 1 4 2 7 4 1225 2347 68 32 96.487778 ands 1 4 2 7 5 1309 2348 100 32 96.982292 others 1 4 2 7 6 1422 2348 194 69 94.749321 provisions5 1 4 2 7 7 1630 2361 38 21 96.615562 as5 1 4 2 7 8 1683 2350 158 42 96.321350 required5 1 4 2 7 9 1856 2351 45 42 96.321350 by5 1 4 2 7 10 1915 2352 59 31 92.705040 thes 1 4 2 7 11 1987 2352 103 34 92.705040 Com-4 1 4 2 8 0 763 2395 377 42 -1 5 1 4 2 8 1 763 2393 169 34 92.628296 mission’s5 1 4 2 8 2 946 2395 107 42 96.709717 rules;5 1 4 2 8 3 1071 2397 69 32 91.113213 and3 1 4 3 0 0 759 2417 1343 282 -1 4 1 4 3 1 0 806 2417 1282 82 -1 5 1 4 3 1 1 806 2437 74 41 97.011070 Thes 1 4 3 1 2 897 2417 227 77 95.935577 Commissions 1 4 3 1 3 1139 2448 132 43 96.696487 having5 1 4 3 1 4 1284 2439 198 44 96.923630 considered5 1 4 3 1 5 1498 2451 58 32 96.966858 thes 1 4 3 1 6 1570 2448 195 51 96.444641 agreements 1 4 3 1 7 1780 2423 70 62 96.982437 ands 1 4 3 1 8 1865 2440 131 56 96.997803 having5 1 4 3 1 9 2010 2466 78 31 90.577126 pro-4 1 4 3 2 0 759 2494 1343 51 -1 5 1 4 3 2 1 759 2494 186 45 91.848068 visionally5 1 4 3 2 2 959 2499 161 41 96.155182 accepted5 1 4 3 2 3 1134 2509 101 31 96.646988 same,5 1 4 3 2 4 1251 2500 69 33 96.919937 ands 1 4 3 2 5 1334 2501 60 32 96.975166 thes 1 4 3 2 6 1408 2506 193 38 93.418747 agreements 1 4 3 2 7 1617 2503 201 42 96.545479 containing5 1 4 3 2 8 1833 2508 139 28 96.667564 consents 1 4 3 2 9 1987 2506 115 36 62.804352 order.4 1 4 3 3 0 762 2546 1326 51 -1 5 1 4 3 3 1 762 2546 132 43 96.572563 having5 1 4 3 3 2 914 2548 210 43 96.531738 thereupon5 1 4 3 3 3 1125 2549 83 43 95.637039 been5 1 4 3 3 4 1225 2551 125 40 95.637039 placed5 1 4 3 3 5 1371 2563 44 21 96.043152 on5 1 4 3 3 6 1434 2554 59 31 96.043152 thes 1 4 3 3 7 1513 2553 118 42 97.004227 public5 1 4 3 3 8 1650 2554 119 32 97.013458 records 1 4 3 3 9 1790 2554 59 32 90.093460 for5 1 4 3 3 10 1867 2566 20 21 90.093460 a5 1 4 3 3 11 1906 2555 121 42 96.947342 periods 1 4 3 3 12 2047 2556 41 32 96.639999 of4 1 4 3 4 0 761 2597 1326 57 -1 5 1 4 3 4 1 761 2597 114 42 93.146423 thirty5 1 4 3 4 2 898 2598 11 42 91.836754 (5 1 4 3 4 3 915 2599 57 55 95.426247 30)5 1 4 3 4 4 995 2599 96 42 96.938835 days,5 1 4 3 4 5 1107 2611 77 21 96.310303 now5 1 4 3 4 6 1200 2601 38 32 96.187996 in5 1 4 3 4 7 1255 2602 136 32 96.353020 furthers 1 4 3 4 8 1408 2603 210 43 96.566467 conformity5 1 4 3 4 9 1633 2604 85 32 97.008057 with5 1 4 3 4 10 1733 2605 60 31 96.830292 thes 1 4 3 4 11 1808 2606 189 41 93.275352 procedures 1 4 3 4 12 2010 2618 77 32 93.252533 pre-4 1 4 3 5 0 761 2648 1326 51 -1 5 1 4 3 5 1 761 2648 161 32 96.989014 scribed5 1 4 3 5 2 913 2660 37 21 97.000290 in5 1 4 3 5 3 968 2649 138 42 93.287971 Sections 1 4 3 5 4 1122 2652 135 44 48.842651 2.34(b)5 1 4 3 5 5 1282 2653 39 32 96.774529 of5 1 4 3 5 6 1337 2653 46 32 96.836212 its5 1 4 3 5 7 1401 2654 100 41 96.761459 rules,5 1 4 3 5 8 1517 2655 60 32 96.797066 thes 1 4 3 5 9 1594 2655 228 34 95.954025 Commissions 1 4 3 5 10 1837 2656 153 43 96.726913 hereby5 1 4 3 5 11 1981 2668 106 22 96.104942 issues COLMAN &. RIDDELL, INC., ET AL. 899:

895 , Decision and Order its complaint in the form contemplated by said agreement, makes the following jurisdictional. findings, ‘and enters the following order: 1. Respondent Colman & Riddell, Inc., is a corporation organized, existing and doing business under and by virtue of the laws. of the State of. Washington, with its office and principal place. of business located at 333 Taylor North, Seattle, Washington. Respondent Cape George Village, Inc., is.a corporation organized, existing and doing business under -and by. virtue of the laws of the state of Washington, with its office and principal place of business located at 333 Taylor North, Seattle; Washington. Respondent Birch Bay Investors i isa limited partnership organized, existing and doing business under'and by virtue of the laws of the state of Washington, with its office and principal place of business located :at 333 Taylor North, Seattle, Washington. ‘Respondents Howard G. Riddell and V. Keith Colman’: are officers of said: corporations and are ‘general partners’ in the above limited partnership: ‘They formulate, direct and control the policies; acts: and practices of said corporations and the. said limited partnership, and their principal office and Place: ‘of. business: i is located at the above stated address. - 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, Colman & Riddell, Inc., a corporation, Cape George Village, Inc., a corporation, and their officers, and Birch Bay Investors, a limited partnership, and their successors and assigns, and Howard G. Riddell and V. Keith Colman, individually, as officers of the above corporations, and as general partners in Birch Bay Investors, and respondents’ agents, representatives and employees, directly or through any corporation, subsidiary, division or other device, in connection with any extension of consumer credit, or advertisement to aid, promote or assist directly or indirectly any. extension of consumer credit, as “consumer credit,” and “advertisement” are defined in Regulation Z (12 C.F.R. § 226) of the Truth in Lending Act (Pub. L. 90-321, 15 U.S.C. 1601 e¢ seq.), do forthwith cease and desist from:

1. Failing to disclose accurately the price at which the subject of any credit sale is offered for sale for cash in the regular course of business and to use the term “cash price” to describe that price as required by Section 226.8(c) (1) of Regulation Z. FEDERAL ‘TRADE COMMISSION DECISIONS Decision and Order 81 E.T.C.

2. Failing to use the term “cash downpayment” to describe the downpayment in money made in connection with the credit. sale, _ as required by Section 226.8(c) (2) of Regulation Z. 3. Failing to disclose the difference ‘between the “eash price” and the downpayment and to use the term “unpaid balance of cash price” to describe that amount as required by Section 226.8 (c) (3) of Regulation Z.

4, Failing to disclose the amount of credit extended, and to describe that amount as the “amount financed” as. required by Section 226.8(c) (7) of Regulation Z.

' 5, Failing to disclose the:sum of all charges which are required by Section 226.4 of Regulation Z to be included in the finance charge and to use the term “finance charge” to describe that sum, as required by Section 226.8 (c) (8).(i) of Regulation Z. 6. Failing to disclose the sum: of the cash price, all charges which are included in the amount. financed but which. are. not: | part of the finance charge, and the finance charge and.to describe that’ sum as the “deferred payment price,” as required by Section 226.8 (c) (8) (ii) of Regulation Z. ;

7. Failing to disclose the “annual percentage rate,” computed in accordance with Section 226.5 of Regulation Z, as required by Section 226.8(b) (2) of Regulation Z.

8. Failing to disclose the number of payments required to repay an indebtedness, as required by Section 226.8(b) (38) of Regulalation Z.

9. Failing to disclose the sum of payments scheduled to repay the indebtedness, and to describe that sum as the “total of payments,” as required by Section 226.8(b) (3) of Regulation Z. 10. Failing to prominently display no less than two signs on the premises of each sales office which will clearly and conspicuously state that, a customer must receive a complete copy of the consumer credit cost disclosures, as required by the Truth in Lending Act, in any transaction which is financed, before the transaction is consummated.

11. Failing in any consumer credit transaction or advertising to make all disclosures determined in accordance with Sections 226.4 and 226.5 of Regulation Z, at the time and in the manner, form, and amount required by Sections. 226.6, 226.8 and 226.10 of Regulation Z; and to give all notices of the right to rescind at the time and in the manner and form required by Section 226.9 of Regulation Z. :

It ts further ordered, That respondents deliver a copy of this order to cease and desist to each operating division and to all present and - HOWARD CARPET MILLS, INC., ET AL. 901 895 Complaint future personnel of respondents engaged in the consummation of any extension of consumer credit, and that respondents secure a signed statement acknowledging receipt of said order from each.such person. Lt is further ordered, That respondents notify the Commission at least thirty. (30) days prior to any proposed change in the corporate © respondents, 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 corporations which may affect compliance obligations arising out of the order. It ts further ordered, That ‘the individual respondents named herein promptly notify the Commission of the discontinuance of their present business or employment and of their affiliation with a new business or employment. Such notice shall include respondents’ current business address and a statement as to the nature of the business or enployment in which they are engaged as well as a description of their duties and responsibilities.

lt is further ordered, That the respondents herein shall within sixty (60) days after service upon them of this order, file with the Com- ‘mission a report, in writing, setting forth in detail the manner and form in which they have complied with this order.