Suburban Motors

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

In tree Marrer or VERNON WOLVERTON, rrapinc as SUBURBAN MOTORS CONSENT ORDER, ETC., IN REGARD TO ALLEGED VIOLATIONS OF TH FEDERAL TRADE COMMISSION AND THE TRUTH IN LENDING ACTS Docket C-2451. Complaint, Sept. 11, 1973—Decision, Sept. 11, 1973. Consent order requiring a Hyattsville, Md., retailer and distributor of used cars, among other things to cease violating the Truth in Lending Act by failing to 440 Complaint disclose to consumers, in connection with the extention of consumer credit, such information as required by Regulation Z of the said Act. Appearances For the Commission: Michael Mpras and Bernard Rowitz. For the respodnent: pro se.

Complaint Pursuant to the provisions of the Federal Trade Commission Act, and of the Truth in Lending Act and the implementing regulation promulgated thereunder, and by virtue of the authority vested in it by said Acts, the Federal Trade Commission, having reason to believe that Vernon Wolverton, an individual trading and doing business as Suburban Motors, hereinafter sometimes referred to as respondent, has violated the provisions of said Acts, and the implementing regulation promulgated under the Truth in Lending Act, 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:

Paracrarn 1. Respondent Vernon Wolverton is an individual trading and doing business as Suburban Motors, with his principal office and only place of business located at 4211 Crittenden Street, Hyattsville, Maryland.

Par. 2. Respondent is now, and for some time last past has been, engaged in the offering for sale and retail sale and distribution of used cars to the public.

Par. 3. In the ordinary course and conduct of his business as aforesaid, respondent regularly extends 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, respondent in the ordinary course of business as aforesaid, and in connection with his credit sales, as “credit sale” is defined in Regulation Z, has caused, and is now causing, customers to execute a binding conditional sales contract, hereinafter referred to as the “Sales Contract.”

Par. 5. By and through the use of the “Sales Contract,” respondent : 1. Fails to use the term “unpaid balance of cash price” to describe the difference between the cash price and the total downpayment in the manner and form required by Section 226.8(c) (3) of Regulation Z.

Complaint 83 E.T.C.

2. Fails 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 “deferred payment price” as required by Section 226.8(c) (8) (ii) of Regulation Z. ;

Par. 6. In the ordinary course of his business as aforesaid, respondent causes to be published advertisements of his used cars, as “advertisements” is defined in Regulation Z. These advertisements aid, promote or assist, directly extensions of consumer credit in connection with the sale of these used cars. By and through the use of the advertisements, respondent :

1. Fails to state the rate of any finance charge expressed as an “annual percentage rate,” as required by Section 226.10(d) (1) of Regulation Z.

2. Fails to make disclosures clearly, conspicuously, and in a meaningful sequence, and in the form and manner prescribed under Section 226.6(a) of Regulation Z, as required by Section 226.10(d) of Regulation Z.

Par. 7. Pursuant to Section 103(q) of the Truth in Lending Act, respondent’s aforesaid failures to comply with the provisions of Regulation Z constitute violations of that Act and, pursuant to Section 108 thereof respondent has thereby violated the Federal Trade Commission Act.

Decision AND ORDER The Federal Trade Commission, having initiated an investigation of certain acts and practices of the respondent named in the caption hereof, and the respondent having been furnished thereafter with a copy of a draft of complaint which the Washington, D.C. Regional Office proposed to present to the Commission for its consideration and which, if issued by the Commission, would charge respondent with violation of the Truth in Lending Act and the implementing regulation promulgated thereunder and violation of the Federal Trade Commission Act; and The respondent and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondent of all the jurisdictional facts set forth in the aforesaid draft of complaint, 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 WURDUARWALY AU aL ULD rr 440 Decision and Order such complaint, and waivers and other provisions as required by the Commission’s rules; and The Commission having thereafter considered the matter and having determined that it has reason to believe that the respondent has violated the said Acts, and that complaint should issue stating its charges in that respect, and having thereupon accepted the executed consent agreement and placed such agreement 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, makes the following jurisdictional findings, and enters the following order:

1. Respondent Vernon Wolverton isan individual, trading as Suburban Motors, with his office and only place of business located at 4211 Crittenden Street, Hyattsville, Maryland. 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 Vernon Wolverton, an individual trading and doing business as Suburban Motors, or under any other name or names, his successors and assigns, and respondent’s officers, agents, representatives, and employees, directly or through any corporation, subsidiary, division or other device, in connection with any extension or arrangement for the extension of consumer credit or any 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, U.S.C. 1601 et seq.), do forthwith cease and desist from:

1. Failing to make disclosures clearly, conspicuously, and in a meaningful sequence, and in the form and manner prescribed under Section 226.6(a) of Regulation Z, as required by Section 226.10(d) of Regulation Z.

2. Failing to use the term “unpaid balance of cash price” to describe the difference between the cash price and the total downpayment in the manner and form required by Section 226.8(c) (3) of Regulation Z.

3. Failing to disclose the sum of the cash price, 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 Decision and Order 83 FLO.

sum as “deferred payment price” as required by Section 226.8(c) (8) (i1) of Regulation Z.

4. Stating, in any advertisement, the rate of any finance charge unless it is expressed as an “annual percentage rate” as required by Section 226.10(d) (1) of Regulation Z. 5. Failing, in any consumer credit transaction or advertising, to make all disclosures determined in accordance with Section 226.4 and Section 226.5 of Regulation Z, at the time and in the manner, form and amount required by Section 226.6, Section 226.7, Section 226.8, Section 226.9 and Section 226.10 of Regulation Z.

It. is further ordered, That respondent deliver a copy of this order to cease and desist to all present and future personnel of respondent 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.

It is further ordered, That the individual respondent named herein promptly notify the Commission of the discontinuance of his present business or employment and of his affiliation with a new business or employment. Such notice shall include respondent’s current business address and a statement as to the nature of the business or employment in which he is engaged as well as a description of his duties and responsibilities. , It is further ordered, That respondent shall, within sixty (60) days after service upon him of this order, file with the Commission a report, in writing, setting forth in detail, the manner and form in which he has complied with the order to cease and desist contained therein.