Carlile-Agee & Associates, Inc

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IN THE MATTER OF CARLILE-AGEE & ASSOCIATES, INC., ET AL.

CONSENT ORDER, ETC., IN RB;GARD TO ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND TRUTH IN LENDING ACTS Docket C-270,J. Cornplainl, July 97.5-De6sion, Jllly, 1!175 Consent order requiring a Denver, Colo., mortgage loan broker, among other things to cease violating the Truth in Lending Act hy failing to disclose to consumers in connection with the extension of consumer credit, such information as required by Regulation Z of the said Act.

A ppea ranees For the Commission: Tommie W. Wakefield. Yor the respondents: Gary C. Davenport, Arkin Hanlon Denver Colo.

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 Carlile-Agee & Associates, Inc., a corporation, Concept 80 Development Corporation, a corporation, and Joseph B. Agee, Sidney H. Sweet and Charles T. Leverett, Jr., individually and as officers of said corporations, hereinafter sometimes referred to as respondents, have 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 27G Flmr:RAL TRADE COMMISSION DECISIONS Complaint SG F.T.

public interest, hereby issues its complaint stating its charges in that respect as follows:

PARAGRAPH 1. Respondent Carlile-Agee & Associates, Inc. is a corporation organized, existing and doing business under and by virtue of the Jaws of the State of Colorado, with its principal offce and place of business located at 1660 S. Albion, Suite 1100, Denver, Colo. Respondent Concept 80 Development Corporation is a corporation organized, existing and doing business under and by virtue ofthe laws of the State of Delaware, with its principal office and place of business located at If;60 S. Albion, Suite 1100, Denver, Colo. Respondents ,Joseph B. Agee, Sidney H. Sweet and Charles T. Leverett, Jr., are officers of the corporate respondents. They formulate, direct and control the acts and practices of the corporate respondents including the acts and practices hereinafter set forth. Their address is the same as that of the corporate respondents. PAR. 2. Respondents are now, ancl for some time last past have been engaged in the advertising, offering for sale and sale of housing to the general public.

PAR. :,. In the ordinary course and conduct of their business as aforesaid, r spondents regularly arrange for the extension of consumer credit or offer to extend or arrange for the extension of such credit, as arrange for the extension of credit" and "consumer credit" are defined in Section 226.2 of 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, respondents, in the ordinary course of business as aforesairl and in connection with credit sales, have caused, and are causing, to be published, advertisements, as "credit sale" and "advertisement" are defined in Section 226-2 of Regulation Z which advertisements aid, promote or assist, directly or indirectly, the extension of other than open end credit.

PAR. 5. Respondents, in certain of the above-mentioned advertisements, have stated and are stating the amount of the downpayment (in dollars or as a percentage of the sale price) without also stating, required by Section 226.10(d)(2) of Regulation Z , all the following terms:

(a) the cash price; Ithe amount of the loan; (b) the amount of the down payment required or that no downpayment is required, as applicable;

(c) the numher, amount and due dates or period of payments scheduled to repay the indebtedness if the credit is extended: and (d) the amount of the finance charge expressed as an annual percentage rate.

275 Dpcision ami Order PAR. G. Pursuant to Section 103(q) of the Truth in Lending Act respondents' aforesaid failures to comply with the provisions of Regulation Z constitute violations of that Act aod, pursuant to Seclion 10H thereof, respondents have thereby violated the Federal Trade Commission Act.

DECISION AND ORDER The Federal Trade Commission having initiated an investigation of certain acts and praclices of the respondents named in the caption hereof, and the respondents having been furnished thereafter with a copy of a draft of complaint which the Kansas City Regional Office proposed to present to the Commission for its consideration and which if issued by the Commission, would charge respondents with violation of the Truth in Lending Act and the implementing regulation promulgated thereunder, and the Federal Trade Commission Act; and The respondents and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondents of all the jurisdictional facts set forth in the aforesaid draft of complaint, a statement that the signing of said agreement is for settement 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 rules; and The Commission having thereafter considered the matter and having determined that it bad reason to believe that the respondents have violated the said Act, 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 sixty (60) days, now in further conformity with the procedure prescribed in Section 2. 4(b) of its rules, the Commission hereby issues its complaint, makes the following jurisdictional findings and enters the following order:

1. Respondent Carlile-Agee & Associates, Inc. is a corporation organized, existing and doing business under and by virtue of the laws of the State of Colorado, with its principal office and place of business located at 1660 S. Albion, Suite llOO, city of Denver, State of Colorado. Respondent Concept HO Development Corporation 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 IGGO S. Alhion, Suite 1l00, city of Denver, State of Colorado. Respondents Joseph B. Agee, Sidney H. Sweet and Charles Leverett, Jr., are officers of the corporate respondents. They formulate, direct and control the acts and practices of the corporate ), 27H n:IJ,:RAL TRADE COMMISSION DECISIONS Decision and Order 86 F.

respondents including the acts and practices hereinafter set forth. Their address is the same as that of the corporate respondents. 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 Carlile-Agee & Associates, Inc., a corporation, its successors and assigns, its officers, Concept 80 Development Corporation, a corporation, its successors and assigns, its officers, and ,J oseph B. Agee, Sidney H. Sweet and Charles T. Leverett Jr., individually and as officers of said corporations, and respondents agents, representatives, salesmen and employees, directly or through any corporation, subsidiary, division or other device, in connection with any advertisement to aid, promote or assist, directly or indirectly, any arrangement or extension of consumer credit as "consumer credit" and advertisement" are defined in Regulation Z (12 CFR 226) of the Truth in Lending Act (Pub. L. 90-321, 15 U. C. 160l el seq. forthwith cease and desist from:

1. Representing in any such advertisement, directly or by implication, that no downpayment is required, the amount of the downpayment or the amount of any instalment payment, either in dollars or as a percentage, the dollar amount of any finance charge, the number of instalments or the period of repayment, or that there is no charge for credit, unless all of the following items are clearly and conspicuously stated, in terminology prescribed under Section 226.8 of Regulation Z as required by Section 226.1O(d)(2) of Regulation Z: (a) the cash price; fthe amount of the loan; (b) the amount of the downpayment required or that no downpayment is required, as applicable;

(c) the number, amount and due dates or period of payments scheduled to repay the indebtedness if the credit is extended; and (d) the amount of the finance charge expressed as an annual percentage rate.

2. F'ailing, in any advertisement, to make all disclosures as required by Section 226.10 in the manner prescribed by Sections 226. , 226.8 and 226. 10 of Regulation Z.

IT 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. 279 Complaint IT IS 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 employment in which they are engal!ed as well as a description of their duties and responsibilities.

IT IS FURTHER ORDERED, That the respondent corporations shall forthwith distribute a copy of this order to each of their operating divisions.

IT IS FURTHER ORDERED, That the respondents herein 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 this order.