Clover Jewelers BLVD., Inc

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IN THE MATTER OF CLOVER JEWELERS BLVD., INC., ET AL.

COI'SENT ORDER , ETC., IN REGARD TO ALLEGED VIOLATIOI' OF THE FEDERAL TRADE COMMISSION AND TRUTH IN LEI'DING ACTS Docket C-2795. Cmnplaint, Feb. 1976-Decision, Feb. , 1.976 Consent order requiring a Las Vegas, Nev., seller of jewelry and small appliances among ot.her things to cease violating the Truth in Lending Act by failing to dbclose 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: Gerald E. Wright. For the respondents: Pro se.

COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act, as amended, 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 Clover Jewelers Blvd., Inc., a corporation, and Michael S. Leffert and Bonnie 1\ olan Leffert, individually and as officers of said corporation, hereinafter sometimes referred to as respondents, have violated the provisions of said Acts, and it appearing to the Commission that a proceeding by it in respect thereof would he in the public interest, hereby issues its complaint stating its charges in that respect as follows:

PARAGRAPH 1. Respondent Clover Jewelers Blvd., Inc. is a corporation organized, existing and doing business under and by virtue of the laws of the State of Nevada with its principal offce and place of business located at 3498 Maryland Pkwy., Las Vegas, Nevada. are Respondents Michael S. Leffert and Bonnie Nolan Leffert officers of the corporate respondent. They formulate, direct and control the acts and practices of the corporate respondent including the acts and practices hereinafter set forth. Their 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 jewelry and small appliances.

business as PAR. 3. In the ordinary course and conduct of their aforesaid, respondents regularly extend and for some time last past 280 FEDERAL TRADE COM IISSION DECISIONS Decision and Order 87 F. have regularly extended consumer credit as "consumer credit" is defined in Regulation Z, the implementing regulation of the Truth in Lending Act, duly promulgated by the Board of Governors of the Federal Reserve System.

PAR. 4. Subsequent to July I , 1969, respondents, in the ordinary course of business as aforesaid, and in connection with credit sales, as credit sale" is defined in Section 226.2(n) of Regulation Z, respondents have caused and are now causing customers to enter into contracts for the purchase of respondent's jewelry and small appliances. In these contracts, hereinafter referred to as "the contract" respondents have provided some, but not all, of the consumer credit cost information required by Regulation Z. Respondents do not provide these customers with any other consumer credit cost information. PAR. 5. By and through the use of the contract refelTed to in Paragraph Four respondents have:

1. Failed to compute and disclose the annual percentage rate accurately to the nearest quarter of one percent in accordance with Section 226.5 of Regulation Z, as required by Section 226.8(b )(2) of Regulation Z.

2. Failed to identify the method of computing any unearned portion of the finance charge in the event of a prepayment of the obligation, as required by Section 226.8(b)(7) of Regulation Z. 3. Failed to disclose that refunds of amounts paid toward the cash price wil not be made to the customer upon default as required by Section 226.8(b)(4) of Regulation Z.

PAR. 6. Pursuant to Section 103(q) of the Truth 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 the Federal Trade Commission Act.

DECISIO:- 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 Francisco Regional Office proposed to present to the Commission for its consideration and which if issued by the Commission would charge respondents with violation of the Federal Trade Commission Act as amended 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, and admission by ), CLOVER .IEWELERS BLVD., INC., ET AL 281 279 Decision and Order 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 settlement 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 of its Rules, the Commission hereby issues its complaint, makes the follo\\ing jurisdictional findings and enters the following order:

I. Respondent Clover Jewelers Blvd., Inc. is a corporation organized, existing and doing business under and by virtue of the laws of the State of K evada, \\ith its principal place of business and office located at 3498 Maryland Pkwy., Las Vegas, Nevada.

Individual respondents Michael S. Leffert and Bonnie Nolan Leffert are the principal officers of said corporation. They formulate, direct and control the policies, acts and practices of said corporation and their business address is the same as that of said corporation. 2. The Federal Trade Commission has jurisdiction of the suhject matter of this proceeding and of the respondents, and the proceeding is in the public interest.

ORDER It is ordered That respondents Clover Jewelers Blvd., Inc., a corporation, and its successors and assigns, and its offcers, and Michael S. Leffert and Bonnie olan Leffert, individually and as offcers 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 extension of consumer credit, as "consumer credit" is defined in Regulation Z (12 C. R. 9226) of the Truth in Lending Act (15 U. 91601 , et seq. do forthwith cease and desist from: 1. Failing to compute and disclose the annual percentage rate to the nearest quarter of one percent in accordance with Section 226.5 of 6TUlation Z, as required by Section 226.8(b)(2) of Reg-lation Z. 2. Failing to identify the method of computing any unearned portion of the finance charge in the event of prepayment as required by Section 226.8(b)(7) of Regulation Z.

216- 1.T - 77 - 15 282 FEDERAL TRADE COMMISSIO:- DECISIONS Decision and Order 87 F.

3. Failing to disclose that refunds of amounts paid toward the cash price wil not be made to the customer upon default as required by Section 226.8(b)(4) of Regulation Z.

4. Failing in any consumer credit transaction or advertisement, to make all disclosures, determined in accordance with Sections 226.4 and 226.5 of Regulation Z, in the manner, form and amount required by Sections 226. , 226. , 226. , 226.9 and 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 consumm ation of any sale or 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 respondents named herein promptly notify the Commission of the discontinuance of their present business or employment and of their affiiation with a new business or employment. Such notice shall include respondents' current business address and a statement as to the nature of the business or employment in which they are engaged as well as a description of their duties and responsibilities.

It is further ordered That respondents herein shall, within sixty (60) days after service upon them of this order, fie with the Commission a report, in writing, setting forth in detail the manner and form in which they have complied with this order.

AMREP CORP. 28:J 283 Order