Roy D. Hansen

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IN THE Matrer OF ROY D. HANSEN T/A ROY HANSEN MORTAGE COMPANY CONSENT ORDER TC. IN REGARD TO ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND TRUTH IN LENDING ACTS Docket C-2664. Complaint, May 1975-Deci..ion, May 1:/, 1975 Consent order requiring- an Arlington, Va., loan broker, among other thinks to cease violating the Truth in Lending Act hy failng to disclose to consumers, in connection with the extension of consumer credit, such information as required by Regulation Z of the said Act.

Appearances For the Commission: Bernrd Rawitz, Alice C. Kellehe and Tharms J. Keary.

For the respondent: Pro se.

COMPLAINT Pursuant to the provisions of the Federal Trde Commssion Act and of the Truth in Lending Act and the implementing reguation 8tjo Complaint promulgated thereunder, and by virtue of the authority vested in it by said Acts, the Federal Trade Commssion, having reason to believe that Roy D. Hansen, an individual, trading and doing business as Roy Hansen Mortgage Company, hereinafter sometimes referred to as respondent, has violated the provisions of said Acts, and the implementing regulation promulgated under the Trth in Lending Aet, and it appearing to the Commssion 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:

PARAGRAPH 1. Respondent Roy D. Hansen is an individual, trading and doing business as Roy Hansen Mortgage Company, with his principal office and place of business located at 2116 Wilson Blvd. Arlington, Va.

PAR. 2. Respondent is now, and for some time last past has been engaged as a broker in the arranging and seeuring of loans for the general public.

PAR. a. In the ordinary course and conduct of his business as aforesaid, respondent regularly arranges for the extension of consumer credit, as "consumer credit" is defined in Regulation Z, the implementing regulation of the Trth in Lending Act, duly promulgated by the Board of Governors of the ederal Reserve System. PAR. 4. Subsequent to July 1, 1969, in the ordinary coure of business as aforesaid, respondent' s customers are provided with consumer credit east disclosure statements.

By and through the use of the aforesaid consumer credit cost disclosures respondent:

1. Fails to disclose the broker s fee or finders fee as a prepaid finance charge, as required by Section 226.8(e)(1) of Reguation Z, using the term "prepaid finance charge," as required by Section 226.8(d)(2) of Regulation Z.

2. Fails to itemie the components of the finance charge, as required by Section 226.8(d)(:) of Regulation Z. 3. Fails to disclose accurately the annual percentage rate computed in aeeordanee with Section 226.5(b) of Regulation Z, as required by Section 226.8(b )(2) of Regulation Z.

4. Fails to print the term "finance charge" and "anual percentage rate" more conspicuously than other tenninology, a.c; required by Section 226.6(a) of Regulation Z.

5. Fails to disclose clearly the method of eomputing any uneared portion of the finance charge in the event of prepayment of the obligation, as required by Section 226.6(a) of Regulation Z. 6. Fails to identify each ereditor, as "ereditor" is defined by Seetion 868 FF.DERAL TRADE COMMISSION DECISIONS Decision and Order 85 F. 226.2(m) of Reguation Z, as required hy Section 226.6(d) of Reguation 7. Fails to make full consumer eredit cost disclosures before the transaction is consummated, as required by Section 226.8(a) of Reguation Z.

PAR. 5. Pursuant to Seetion 103(q) of the Truth in Lending Act respondent's aforesaid failures to comply with the provisions of Reguation Z constitute violations of the Act and, puruant to Section 108 thereof, respondent has thereby violated the Federal Trade Commssion Act.

DECISION AND ORDER The Commission having heretofore determined to issue its complaint charging the respondent named in the caption hereto with violation of the Federal Trade Commission Aet, and the respondent having been served with notice of said determnation and with a copy of the complaint the Commssion intended to issue, together with a proposed form of order; 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 complaint to issue herein, a statement that the signg of said agreement is for settement purpses 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 Commssion rules; and The Commission having considered the agreement and having provisionally accepted same, and the agreement containing eonsent order having thereupon been placed on the public record for a period of sixty (60) days, now in further eonformity with the procedure prescribed in Seetion 2.34(b) of its rules, the Commssion hereby issues its complaint in the form contemplated by said agreement, makes the following jurisdictional findings, and enters the following order: 1. Respondent Roy D. Hansen is an in,lividual, trdding and doing business as Roy Hansen Mortgage Company with his offee and principal place of business located at 2116 Wilson Blvd., Arlington, Va. 2. The Federal Trde Commssion ha., jursdiction of the subject matter of this proceeding and of the respondent, and the proceedig is in the public interest.

ORDER It is ordered That respondent Roy D. Hansen, an individual, trading ), ROY HANSEN MORTGAGE CO. 869 866 Decision and Order and doing business as Roy Hansen Mortgage Company, or under any other name or names, his successors and assigns, and respondent' agents, representatives and employees, directly or through any corporation, subsidiar, division or other device, in connection with any extension or arangement for the extension of consumer credit or advertisement to aid, promote or assist, directly or indirectly, any extension or arrangement for the extension of consumer credit, as consumer credit" and "advertisement" are defined in Regulatin Z (12 R. 922()) of the Trth in Lending Aet (Pub.L. 90-321, 15 U. 91601, et seq. do forthwith cease and desist from: 1. Failng to disclose the broker's fee or finder's fee a.s a prepaid finance charge, as required by Section 226.8(e)(I) of Reguation Z, using the term "prepaid finance charge " as required by Section 226.8(d)(2) of Regulation Z.

2. Failing to itemie the components of the finance charge, as required by Seetion 226.8(d)(3) of Regulation Z. 3. Failing to disclose accurately the annual percentage rate computed in aecordanee with Section 226.5(b) of Reguation Z, as required by Section 226.8(b)(2) of Regulation Z. 4. Failing to print the term "finance charge" and "annual percentage rate" more conspicuously than other termnology, as required by Seetion 226.6(a) of Reguation Z. 5. Failing to disclose clearly the method of eomputing any unearned portion of the finance charge in the event of prepayment of the obligation, as required by Section 226.6(a) of Regulation Z. 6. Failng to identify each creditor, as "ereditor" is defined in Section 226.2(m) of Regulation Z, as required by Section 226.6(d) of Regulation Z.

7. Failing to provide the borrower complete consumer eredit cost disclosures before consummation of the trdIaction, as required by Section 226.8(a) of Reguation Z.

8. Failing, in any consumer credit transaction or advertisement, to make all disclosures, determined in aceordanee with Sections 226.4 and 226.5 of Regulation Z, in the maner, form and amount required by Sections 226. , 226. , 226.9 and 226.10 of Reguation Z. It is furtlwr ordered That respondent prominently display no less than two signs on the premises which wi clearly and eonspieuously state that a customer must receive a complete copy of the consumer eredit cost disclosures, as required by the Trth in Lending Act, in any transaction which is financed, before the transaction is consummated. It is furtlwr ored That respondent deliver a copy of this order to cea.se and desist to all present and future personnel of respondent engaged in the arangig for the extension of consumer eredit, and that Complaint 85 F.

respondent secure a signed statement acknowledging receipt of said order from each such person.

It is further rrdered That the respondent named herein promptly notify the Commission of the diseontinuanee of his present business or employment and of his affiiations with a new business or employment. Such notice shall include respondent's extent 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 rrdered That the respondent herein shall within sixty (60) days after servee upon him of this order, fie with the Commission a report, in writing, setting forth in detail the manner and form in which he has complied with this order.