Peter Sczerbinski

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IN THE MATIR OF PETER SCZERBINSKI T/A BUDGET SERVICE COMPANY CONSENT OIWER, ETC., IN REGARD TO ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND TRUTH IN LENDING ACTS Docket C-2fi57. Complaint, Apr. , 1975 - Decision, Apr. J.75 Consent order requiring a Cranston, R.I. , moneylender in connection with the financing of insurance premiums, 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 infonnation as required by Regulation Z of the said Act.

Appearances For the Commision: Ja'/s S. Parker. For the respondents: Pro se.

COMPLAINT Pursuant to the provisions of the Trth in Lending Act and the implementing regulation promulgated thereunder, and the Federal Trade Commission Act, and by virtue of the authority vested in it by said Acts, the Federal Trade Commission, having reason to believe that Peter Sezerbinski, an individual trading and doing business as Budget Service Company, hereinafter referred to as respondent, has violated the provisions of said Acts and the implementing Regulation, and it appearing to the Commission that a proceeding hy it in respect thereof would be in the public interest, hereby issues its complaint stating its charges in that respect as follows:

PARAGRAPH 1. Respondent Peter Sczerbinski is an individual trading and doing business as Budget Servce Company, with his offee and principal place of business located at 1320 Cranston St., Cranston, R.I. PAR. 2. Respondent is now, and for some time last past has been engaged in the business of lending money to the public in connection with the financing of insurance premiums.

PAR. 3. In the ordinary course and conduct of his business as aforesaid, respondent regularly extends and for some time last past has reguarly extended consumer credit as "consumer credit" is defined in Regulaton Z, the implementing regulation of the Trth in Lending Aet duly promulgated by the Board of Governors of the Federa Reserve System.

PAR. 4. Subsequent to July 1, 1969, respondent in the ordinary course and conduct of his business a." aforesaid, has caused and is causing to be Decision and Order 85 F. extencledconsumer credit, as "consumer credit" is defined in Regulation Z, and has caused and is causing customers to execute a binding eomhination promissory note and disclosure statement, hereinafter referred to as the "statement." Respondent does not provide these customers with any other consumer credit east disclosures. By and through the use of the statement, respondent: 1. Failed to use the term "unpaid balance of eash price" to describe the difference between the cash price and the total downpayment, as required by Seetion 226.8(e)(3) of Regulation Z. 2. Failed in some instances 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.

3. Failed in some instances to disclose the annual percentage rate computed in aeeordanee with Section 226.5 of Reguation Z, as required by Section 226.8(b)(2) of Reguation Z.

4. Failed in some instances to disclose the annual percentage rate aecuratcly to the nearest quarter of one percent, in aecordanee with Section 226.5 of Regulation Z, as required by Seetion 226.8(b)(2) of Regulation Z.

5. Provided additional information which misleads or confuses the customer or obscures or detracts attention from the information required to be disclosed by Regulation Z, in violation of Seetion 226.6(c) of Regulation Z.

6. Failed to make the disclosures required by Section 226.8 of Reguation Z clearly, eonspieuously and in a meaningful sequence, as required by Seetion 226.6(a) of Regulation Z. PAR. 5. Pursuant to Section 103(q) of the Trth 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 Commssion 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 furished thereafter with a copy of a draft of complaint which the Boston Regional Offee proposed to present to the Commission for its eonsiderdtion and which, if issued hy the Commission, would charge respondent with violation of the Truth in Lending Act and the implementing regulation promulgated thereunder and violation of the Federal Trdde Commission Act; and ), 801 Decision and Order The respondent and counsel for the Commssion having thereafter executed an agreement containing a eonsent order, an admission by the respondent of all the jursdictional 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 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 eonsent agreement and placed such agreement on the public record for a period of sixty (60) days, now in furher eonformity with the procedure prescribed in Section 2.34(b) of its rules, the Commission hereby issues its complaint, makes the following jursdietional findings, and enters the following order:

1. Respondent Peter Sezerbinski is an individual tmding and doing business as Budget Serviee Company, with his offee and principal place of business located at la20 Cranston St., Providenee, R.L 2. The Fedeml Trade Commission has jursdiction 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 Peter Sezerbinski, an individual trading and doing business as Budget Serviee Company, or under any other name or names, his successors and assigns, and respondent's 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. R. 226) of the Trth in Lending Act (Pub. L. 9O-a21, 15 U. C. lf01 et seq. forthwith cease and desist from:

1. Failing to use the term "unpaid balance of cah price" to describe the difference between the eash price and the total downpayment, as required by Section 226.8(c)(a) of Reguation Z. 2. Failing to disclose the sum of the eash price, all charges which are included in the amount financed but which are not par of the finance charge, and the finance charge, and to describe that sum as the deferred payment price" as required by Seetion 226.8(e)(8)(ii) of Reguation Z.

Decision and Order 85 F. 3. Failing to disclose the annual percentage rate, computed in aeeordanee with Section 22(;.5 of Regulation Z, as required by Section 22(;.8(b)(2) of Regulation Z.

4. Failing to disclose the annual percentage rate aeeurately to the nearest quarerof one percent, in aceordanee with Seetion 22(;.5 of Reguation Z, as required by Section 22(;.8(b)(2) of Regulation Z. 5. Stating, utilizing or placing any additional infonntion in conjunction with the disclosures required to be made by Regulation Z which information misleads, confuses, contradicts, obscures or detracts attention from disclosure of information required to be disclosed by Regulation Z, in violation of Seetion 22(;.(;(c) of Reguation Z. (;. Failing, to make all disclosures required by Regulation Z clearly, eonspieuously, and in meaningful sequence, as required by Section 22(;.(;(a) of Regulation Z.

7. Failing, in any consumer credit transaction or advertisement, to make all disclosures, determined in aeeordanee with Seetions 22(;.4 22(;.5 of Regulation Z, at the time and in the manner, form and amount required by Sections 22(;. , 22(;.8, and 22(;.10 of Regulation Z. It is fi"rth,"r orrred 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 fi"rther orikred That respondent promptly notify the Commission of the discontinuance of his present business or employment in those instances in which the respondent affilates with any new business or employment which is eng-aged in the extension of consumer credit. Such notice shall include respondent's eurent business address and a statement as to the nature of the business or employment in which he is eng-aged as well as a description of his duties and responsibilities.

It is further orikred That the respondent herein shall within sixty ((;0) days after serviee upon him of this order, fie with the Commssion a report, in wrting, setting forth in data the maner and form in which he has complied with this order.

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