James Slyman

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IN THE MATTER OF JAMES SLYMAN T/A SLYMAN REAL ESTATE COMPANY CONSENT ORDF,R, ETC., IN REGARD TO ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND TRUTH IN LENDING ACTS Docket C-2714. Complaint, Aug. 1975-Decision, Aug. , 1975 Consent order requiring a Knoxvile, Tenn., real estate broker, among other things to cease violating the Truth in Lending Act by failing to disclose to consumers connection with the extension of consumer credit, such infonnation as required by Regulation Z of the said Act.

Appearances or the Commission: Charles C. Murphy, Jr. For the respondent: 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 James Slyman, an individual trading and doing business as Slyman Real Estate Company, hereinafter sometimes referred to as respondent, has violated the provisions of said Acts and implementing regulation, 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 James Slyman is an individual trading and doing business as Slyman Real Estate Company, with his principal office and place of business located at 5722 Oak Ridge Hwy., Knoxvile Tenn.

PAR. 2. Respondent is now, and for some time last past has been engaged in the advertising, offering for sale and sale of improved and unimproved, developed and undeveloped real estate to the public. PAR. 3. In order to promote the sale of improved and unimproved developed and undeveloped real estate, respondent has caused advertisements, as "advertisement" is defined in Section 226.2(b) of Regulation Z, to be placed in newspapers of interstate circulation. These advertisements aid, promote or assist directly or indirectly extensions of consumer credit, as "consumer credit" is defined in Section 226.2 of Regulation Z, through the offer to persons of 418 FEDF,RAL TRADE COMMISSION DECISIONS Decision and Order 86 F. assumptions of ohligations," as that term is used in Section 226.8(k) of Regulation Z. Certain of said advertisements which were published subsequent to .July 1 , 1969:

1. Stated the rate of a finance charge without stating the rate of such charge expressed as an "annual percentage rate " using that term in violation of Section 226.1O(d)(l) of Regulation Z. 2. Stated the amount of installment payments, the number of installments, and the period of repayment to be made if the credit is extended, without also stating all of the following items in terminology prescribed under Section 226.8 of Regulation Z, as required by Section 226. 10(d)(2) thereof:

a. The amount of the loan;

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

PAR. 4. 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 Commission 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 Atlanta Regional Offce proposed to present to the Commission for its consideration and which if issued by the Commission, would charge respondent with violation of the Federal Trade Commission Act, and the Trth in Lending Act and the implementing Regulation promulgated thereunder; 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 signng 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 Act, and that complaint should issue stating its charges in that respect, and having thereupon accepted the executed ), 417 Dccision and Order 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 2.34(b) of its rules, the Commission hereby issues its complaint, makes the following jurisdictional findings and enters the following order:

1. Respondent James Slyman is an individual trading and doing business as Slyman Real Estate Company, with his office and principal place of business located at 5722 Oak Ridge Hwy., Knoxvile, Tenn. 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 IT 1S ORDEHED, That respondent James Slyman, an individual trading and doing business as Slyman Real Estate Company, or under any other name or names, and respondent's successors, assigns, 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 credit, or any advertisement to aid, promote or assist directly or indirectly any extension of consumer credit, as "advertisement" and "consumer credit" are defined in Regulation Z (12 CFR 9226) ofthe Truth in Lending Act (Pub.L. 90- 321 15 U. C. 9lfiOl et seq. do forthwith cease and desist from: 1. Causing to be disseminated to the public in any manner whatsoever any advertisement to aid, promote or assist directly or indirectly any extension of consumer credit which advertisement states:

(a) The rate of a finance charge unless the rate of such charge is expressed as an "annual percentage rate/' using that tenn as required by Section 226.1O(d)(I) of Regulation Z.

2. Representing in any such advertisement, directly or by implication, that no downpayment is required, the amount of the downpayment or the amount of any installment payment, either in dollars or as a percentage, the dollar amount of any finance charge, the number of installments 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 Re!,'1lation Z: (a) The amount ofthe loan;

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

q.

420 FF,DERAL TRADE COMMISSION DF,CISIONS Complaint H6 F.

3. Failing, in any consumer credit transaction or advertisement, to make all disclosures, determined in accordance with Section 226.4 and Section 226.5 of Regulation Z, in the manner, form and amount required by Sections 226. , 226.8, 226.9 and 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 copy of this order from each such person.

It is jilrther ordered That the respondent named herein promptly notify the Commission of the discontinuance of his present 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 the respondent herein 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 this order.