Ralph M. Sutherland trading as New Auto Land

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

In THe Matrer or RALPH M. SUTHERLAND rrapine sas NEW AUTO LAND CONSENT ORDER, ETC., IN REGARD TO ALLEGED VIOLATIONS OF THE FEDERAL TRADE COMMISSION AND THE TRUTH IN LENDING ACTS Docket C-2449. Complaint, Sept. 11, 1978—Decision, Sept. 11, 1973. Consent order requiring a Fairfax, Virginia, retailer and distributor of used cars, among other things to cease violating the Truth in Lending Act by failing to 482 a ERE - ae ere ‘Complaint s “disclose to < consumers, in n connection with the extension | of. consumer. credit, “es such. information as required. by Regulation, Z of the: said Act. A P pearances : Forth the Commission LU ‘chael Mu. Pras and a Bernard Rowite. e For the respondent; Pro Se. aS oe | Comnaner Pursuant to the ‘orion of the Federal Trade Commission Act, ee ad of the Truth in Lending Act and the implementing regulation peek oe promulgated thereunder, and by virtue of the authority vested in it by _ Se said Acts, the Federal Trade Commission, having reason to believe that Ralph M. Sutherland, an individual trading and doing business as — e a New. Auto Land, hereinafter sometimes referred to as. respondent, has ae violated the provisions of said Acts, and the implementing regulation Bee Q promulgated under the Truth in Lending. Act, and it appearingtothe Commission that a proceeding by it in respect thereof would be in. the es = public ‘interest, hereby issues its complaint stating its cee in that 2 respect as follows:

- Paracraps 1. Respondent Ralph M. ‘Sutherland is an > individial: = oS “3 tiiding and doing business as New Auto Land with his principal office. and only. place of business located at 11325 ie e Highway, Fairfax, Ts : Virginia. © ~ Par. 2. Respondent | is now, and fon: some time last past has Bee, engaged i in the offering for sale and retail sale and distribution of used ‘cars to the public. a Par. 3. In the ordinary course and conduct of his business é 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 Ses -. of the Federal Reserve System.

Par. 4, Subsequent to July 1, 1969, respondent i in the opdiniaryec 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, Le customers to execute a binding Used Car Order Contract, hereinafter Le : referred to as the “Order Contract.”

Par. 5. By and through the use of the “Order Contract, ” sespondent: 5 1. Fails to disclose the annual percentage rate, computed in accord. -— ance with Section 226.5 of. Regulation. Z,. as Feqnired by Section & : 226. 8(b) (@) of Regulation Z.: ;

Complaint 88 FL.C.

2. Fails, in some instances, to disclose the number, amouzs, and due dates of payments scheduled to repay the indebtedness, as required by Section 226.8(b) (3) of Regulation Z.

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

4. Fails to disclose the amount of the “amount financed,” as required by Section 226.8(c) (7) of Regulation Z.

5. 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 the “deferred payment price,” as required by Section 226.8(c) (8) (ii) of Regwation Z.

Par. 6. 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 Commis: sion 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 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 had 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 432 : Decision and Order consent agreement and placed such agreement on the public record for a period of thirty (380) 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 Ralph M. Sutherland is an individual, trading and doing business as New Auto Land, with his office and only place of business located at 11325 Lee Highway, Fairfax, Virginia. 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 lt is ordered, That respondent, Ralph M. Sutherland, an individual trading and doing business as New Auto Land, or under any other name or names, and respondent’s agents, representatives, and employees, successors and assigns, directly or through any corporation, subsidiary, division or other device, in connection with any extension or arrangement 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¢ seg.) , do forthwith cease and desist from: 1. 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.

2. Failing to disclose the number, amount and due dates of payments, scheduled to repay the indebtedness, as required by Section 226.8 (b) (3) of Regulation Z. , 3. Failing to disclose the “unpaid balance of cash price” in the manner and form required by Section 226.8(c) (3) of Regulation Z.

4. Failing to disclose the amount of the “amount financed,” as required by Section 226.8(c) (7) of Regulation Z. 5. 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) (11) of Regulation Z.

6. 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 Decision and Order 83 F.T.C.

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 herein.