Tony Evans Motors, Inc

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IN THE MATTER OF TONY EVANS MOTORS, INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND TIWTH IN LENDING ACTS Docket C-2725. Complaint, Sept. 10, 1975-Decisioll., Sept.. 10, 1975 Consent order requiring a Reno, Nev., mobile home dealer, 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.

Appearances For the Commission: Jerome M. Steiner, Jr. For the respondents: Wayne N. Capurro Reno, Nev. COMPLAINT Pursuant to the provisions of the Federal Trade Commission 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 Tony Evans Motors, Inc., a corporation, doing business as Tony Evans Mobile Home Show, Capital Mobile Home Show, Mobile Home Show and Repo Information Center, and Anthony P. Evans, individually and as an officer of said corporation, hereinafter sometimes referred to as respondents, have violated the provisions of said Acts and the implementing regulation promulgated under the Truth 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 Tony E vans Motors, Inc. is a corporation organized, existing, and doing business under and by the virtue of the laws of the State of Nevada, with its principal offce and place of business located at 3290 Kietzke Lane, Reno, Nev. Individual respondent Anthony P. Evans is an officer of the corporate respondent. He formulates, directs and controls the policy, acts and practices of the corporation, including the acts and practices hereinafter set forth. His business address is the same as that of the corporate respondent.

PAR. 2. Respondents are now, and for some time last past have been engaged in the advertising and sale to the public of mobile homes and furniture and accessories designed for use in mobile homes. 62R FEDF:HAL TRADE COMMISSION DECISIONS Decision and Order 86 F.T.C. PAR. 3. In the ordinary coure of their busines, as aforesaid respondents regularly arrange for and offer to arrange for the extension of consumer credit as "consumer credit" and "arrange for the extension of credit" are defined in Regulation Z, the implementing regulation of the Truth in Lending Act, duly promulgated by the Board of Gover;'ors of the Federal Reserve System. PAR. 4. Subsequent to July 1, 1969, respondent" in the ordinary course of their business as aforesaid, have published and broadcast and are causing to be published and broadcast advertisements of their goods and services, as "advertisement" is defined in Regulation Z. These advertisements aid, promote, or assist directly or indirectly extensions of consumer credit in connection with the sale of these goods and services. By and through the use of the advertisements respondents:

1. State the rate of finance charge without describing that rate as the "annual percentage rate " in violation of Section 226.10(d)(1) of Regulation Z.

2. State the amount of the down payment required or that no downpayment is required and/or the amount of the monthly installment payments which can be arranged in connection with a consumer credit transaction, without, in all cases, 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: (i) The cash price;

(ii) The amount of the down payment required or that no down payment is required, as applicable;

(iii) The number, amount and due dates or period of payments scheduled to repay the indebtedness if the credit is extended; (iv) The amount of the finance charge expressed as an annual percentage rate; and (v) The deferred payment price.

PAR. 5. Pursuant to Section 103(q) of the Trth in Lending Act respondents' aforesaid failures to comply with the provisions of Regulation Z constitute violations of that Act and pursuant to Section 108 thereof, respondents have thereby violated Section 5 of the Federal Trade Commission Act.

DECISION AND ORDER The Federal Trade Commission having initiated an investigation of certain acts and practices of the respondents named in the caption hereof, and the respondents having been furnished thereafter with a copy of a draft of complaint which the San ~'rancisco Regional Office proposed to present to the Commission for its consideration and which 627 Decision and. Order if issued by the Commission, would charge respondents with violation of the Federal Trade Commission Act and the Truth in Lending Act and the implementing regulation promulgated thereunder; and The respondents and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondents of all the jurisdictional facts set forth in the aforesaid draft of complaint, a statement that the signing of said agreement is for settement purposes only and does not constitute an admission by respondents 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 respondents have violated the said Acts, and that complaint should issue stating its charges in that respect, and having thereupon accepted the executed 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 Tony Evans Motors, Inc., doing business as Tony Evans Mobile Home Show, Capital Mobile Home Show, Mobile Home Show, and Repo Information Center, is a corporation organized existing and doing business under and by virtue of the laws of the State of Nevada, with its principal place of business and offce located at 3290 Kietzke Lane, Reno, Nev.

Individual respondent Anthony P. Evans is the principal officer of said corporation. He formulates, directs and controls the policies, acts and practices of said corporation, and his business address is the same as that of said corporation.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents, and the proceeding is in the public interest.

ORDER It is ordered That respondents Tony Evans Motors, Inc., a corporation, doing business as Tony Evans Mobile Home Show, Capital Mobile Home Show, Mobile Home Show, and Repo Information Center or by any other name, and its successors and assigns, and its officers and Anthony P. Evans, individually and as an offcer of said corporation, and respondents' agents, representatives, and employees directly or through any corporation, subsidiary, division, or other device, in connection with any extension or arrangement for the ), r;; FEDERAL TRADE COMMISSION DECISIONS eision and Order H6 F.

extension of commmer credit, or any 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 R. 9226) of the Truth in Lending Act (15 U. c. 91601 et seq. forthwith cease and desist from:

1. Stating, in any advertising, the rate of any finance charge without stating the rate of that charge expressed as an "annual percentage rate," as required by Section 226.1O(d)(l) 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 Regulation Z: (a) the cash price;

(b) the amount of the downpayment required or that no downpayment is required, as applicable;

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

3. Failing, in any advertisement, to make all disclosures, determined in accordance with Section 226.4 and 226.5 of Regulation Z, at the time and in the manner, form and amount prescribed by Section 226.10 of Regulation Z.

It is further ordered That respondents deliver a copy of this order to cease and desist to all present and future personnel of respondents engaged in the consummation of any sale or extension of consumer credit or in any aspect of preparation, creation, or placing of advertising, to aid, promote, or assist any extension of consumer credit and that respondents secure a signed statement acknowledging receipt of said order from each such person.

It is further ordered That respondents notify the Commission at least thirty (30) days prior to any proposed change in the corporate respondent, such as dissolution, assignment, or sale, resulting in the emergence of a successor corporation, the creation or dissolution of subsidiaries or any other change in the corporation which may affect compliance obligations arising out of this order. It is further ordered That the individual respondent named herein promptly notify the Commission of the discontinuance of his present 631 Complaint business or employment and of his affiiation 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 respondents herein shall, within sixty (60) days after service upon them of this order, file with the Commission a report, in writing, setting forth in detail the manner and form in which they have complied with this order.