Ted P. Simopoulos

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

IN Tile MA'ITR TED P. SIMOPOULOS T/A TED SIMS REAL ESTATE CONSENT ORDER, ETC., IN RgGARD TO ALLEGED VIOLATION OF FEDERAL TRADE COMMISSION AND TRUTII IN LENDING ACTS Docket C-2666. Complaint, May lY7.'j- Decisiun.. May 1. 1!)7,5 Consent order requiring a Lynchburg, Va., loan broker, among other things to cease violating the Truth in Lending Act by failing to disclose to consumers, in connection with the extension of consumer credit, such information as required by Regulation Z of the said Act.

TED SIMS REAL ESTATE 875 871 Complaint Appeamnces For the Commission: Bernftrd Rowitz, Alice C. Kellefwr and Thmnas J. Kenry.

For the respondent: Pro se.

COMPLAINT Pursuant to the provisions of the Federal Trade Commssion 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 Ted P. Simopoulos, an individual, trading and doing business as Ted Sims Real Estate, hereinafter sometimes referred to as respondent has violated the provisions of said Acts, and the implementing regulation promulgated under the Trth 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:

PARAGRAPH 1. Respondent Ted P. Simopoulos is an individual trading and doing business as Ted Sims Real Estate, with his principal offee and place of business located at 1111 Chureh St., Lynehburg, Virginia.

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

PAR. 3. 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 implement ing regulation of the Truth in Lending Act, duly promulg-ated by the Board of Governors of the Federal Reserve System. PAR. 4. Subsequent to .J uly 1, 1969, in the ordinar eoure of business as aforesaid, respondent's customers are provided with consumer credit cost disclosure statements.

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

1. Fails to include the broker's fee or finder's fee in the determination of the finance charge, as required by Section 226.4(a)(3) of Reguation Z.

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

876 red!,RAL TRAm COMMISSION DECISIONS Decision and Order 85 F. 3. Fails to itemize the components of the finance charge, as required by Seetion 226.8(d)(3) of Regulation Z. 4. Fails to dise\ose aeeurately the annual percentage rate computed in aecordanee with Section 226.5(b) of Regulation Z, as required by Section 226.8(b)(2) of Regulation Z.

5. Fails to print the terms "finance charge" and "annual percentage rate" more conspieuously than other termnology, as required by Seetion 226.6(a) of Regulation Z.

6. Fails to dise\ose e\early 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 Reguation Z. 7. Fails to identify the broker as a creditor, as "ereditor" is defined by Section 226.2(m) of Regulation Z, as required by Section 226.6(d) of Regulation Z.

8. Fails to make full consumer credit cost disclosures before the transaction is consummated, as required by Section 226.8(a) of Regulation Z.

PAR. 5. Pursuant to Section 103('1) of the Trth in Lending Act respondent' s aforesaid failures to comply with the provisions of Reguation Z constitute violations of the Act and, pursuant to Section 108 thereof, respondent has thereby violated the Fedeml Trade Commission Act.

DECISION AND ORDER The Commission having heretofore determined to issue its complaint charging the respondents named in the caption hereto with violation of the Federal Trade Commission Act, and the respondent having been served with notice of said determination 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 Commssion having thereafter executed an agreement containing a consent order, an admission by the respondent of all the jursdictional facts set forth in the complaint to issue herein, a statement that the signng of said agreement is for only and does not constitute an admission bysettlement purses 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 considered the agreement and having provisionally accepted same, and the agreement containing consent order having thereupon been placed on the public record for a period of sixty (60) days, now in further conformity with the procedure prescribed in Seetion 2.34(b) of its rules, the Commission hereby issues ), 874 Decision and Order its complaint in the form contemplated hy said agreement, makes the following jursdietional findings, and enters the following order: 1. Respondent Ted P. Simopoulos is an individual, trading and doing business as Ted Sims Real Estate, with his office and principal place of business located at 1111 Church St., Lynehburg, Va. 2. The Federal Trade Commssion has jurisdiction of the subject matter of this proceeding and of the respondent, and the proeeerling is in the public interest.

ORDF;R It is ordered That respondent Ted P. Simopoulos, an individual trading and doing business as Ted Sims Real Estate, 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 or arrangement for the extension of consumer eredit 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 Reguation Z (12 C. 9226) of the Truth in Lending Act (Pub.L. 90-321, 15 U. C. 1601 seq. do forthwith cease and desist from: 1. Failng to include the broker's fee or finder's fee in the determnation of the finance charge, as required by Section 226.4(a)(3) of Regulation Z.

2. Failing to disclose the broker's fee or finder's fee as a prepaid finance charge, as required by Section 226.8(e)(I) of Regulation Z, using the term "prepaid finance charge " as required by Section 226.8(d)(2) of Regulation Z.

3. Failng to itemie the components of the finance charge, as required by Section 226.8(d)(3) of Regulation Z. 4. Failing to disclose aceurately the annual percentage rate computed in aecordance with Section 226.5(b) of Regulation Z, as required by Section 226.8(b )(2) of Regulation Z. 5. Failng to print the terms "finance charge" and "annual percentage rate" more conspicuously than other termnology, a.o; required by Section 226.6(a) of Regulation Z. 6. Failing to disclose clearly the method of eomputing any uneared portion of the finance charge in the event of prepayment of the oblig-ation, as required by Section 226.6(a) of Reguation Z. 7. Failing to identify the broker as a ereditor, as "creditor" is defined in Seetion 226.2(m) of Regulation Z, as required by Section 226.6(d) of Regulation Z.

8. F'ailing to provide the borrower complete consumer credit east Decision and Order 85 VT. disclosures before consummation of the transaction, as required Section 226.8(a) of Regulation Z.

9. Failing, in any consumer credit transaction or advertisement, to make all disclosures, determined in aecordance with Sections 226.4 and 226.5 of Regulation Z, in the manner, form and amount required by Seetions 226. , 226. , 226.9 and 226.10 of Regulation Z. It is further ordered That respondent prominently display no less than two signs on the premises which wil 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 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 arranging for the extension of consumer credit and that respondent secure a signed statement acknowledging receipt of said order from each such person.

It is further ardered That the respondent named herein promptly notify the Commission of the discontinuance of his present business or employment and of his affiliations with a new business or employment. Such notice shall include respondent's curent business addresses 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 ardered That the respondent herein shall within sixty (60) days after servee upon him of this order, file with the Commission a report, in wrting, setting forth in detal the manner and form in which he has eomplied with this order.