UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION

In The Matter of
RILEY MANUFACTURED HOMES, INC., a corporation, and
DENNIS OHNSTAD, individually and as an officer of the corporation.

DOCKET NO.

COMPLAINT

The Federal Trade Commission, having reason to believe that Riley Manufactured Homes, Inc., a corporation, and Dennis Ohnstad, individually and as an officer of the corporation ("respondents"), have violated the provisions of the Truth in Lending Act, 15 U.S.C. §§ 1601-1667e, as amended, and its implementing Regulation Z, 12 C.F.R. § 226, as amended, and it appearing to the Commission that this proceeding is in the public interest, alleges:

1. Respondent Riley Manufactured Homes, Inc., is an Illinois corporation with its principal office or place of business at 2610 N. Cunningham Avenue, Urbana, Illinois 61801.
2. Respondent Dennis Ohnstad is an officer of the corporate respondent. Individually or in concert with others, he formulates, directs, or controls the policies, acts, or practices of the corporation, including the acts or practices alleged in this complaint. His principal office or place of business is the same as that of Riley Manufactured Homes, Inc.
3. Respondents have disseminated advertisements to the public that promote extensions of closed-end credit in consumer credit transactions, as the terms "advertisement," and "consumer credit" are defined in Section 226.2 of Regulation Z, 12 C.F.R. § 226.2, as amended.
4. The acts and practices of respondents alleged in this complaint have been in or affecting commerce, as "commerce" is defined in Section 4 of the Federal Trade Commission Act, 15 U.S.C. § 44.

   CREDIT ADVERTISING

5. Respondents have disseminated or have caused to be disseminated advertisements for homes in the print media, including but not necessarily limited to the attached Exhibit A. These advertisements contain statements such as the following:

Interest rates from 5.78%

6. Respondents have disseminated or have caused to be disseminated advertisements for homes in the print media, including but not necessarily limited to the attached Exhibit B. These advertisements contain statements such as the following:

   $279 PER Month*

   * * *

*based on $29,900 SP plus ST, less
$1589 DP for 300 months at 10.25%
VAR interest.

TRUTH IN LENDING ACT AND REGULATION Z VIOLATIONS:
Failure to Disclose Required Information

7. In advertisements, including, but not necessarily limited to, Exhibits A and B, respondents have stated a rate of finance charge for financing the purchase of the advertised homes.
8. These advertisements, described in Paragraph 7, have failed to state the rate of finance charge as an annual percentage rate as required by Regulation Z, 12 C.F.R. § 226.24(b).
9. Respondents' failure to state the rate of finance charge as an annual percentage rate as set forth in Paragraph 8 violates Section 144 of the Truth in Lending Act, 15 U.S.C. § 1664, as amended, and Section 226.24(b) of Regulation Z, 12 C.F.R. § 226.24(b).
10. In advertisements, including, but not necessarily limited to, Exhibit B, respondents have stated the amount or percentage of any downpayment; the number of payments or the period of repayment; the amount of any payment; or the amount of any finance charge.
11. These advertisements have failed to state the amount or percentage of the downpayment; the terms of repayment; and the "annual percentage rate," using that term or the abbreviation "APR," as required by Regulation Z, 12 C.F.R. § 226.24(c).
12. Respondents' failure to state the amount or percentage of the downpayment; the terms of repayment; and the "annual percentage rate," using that term or the abbreviation "APR," as set forth in Paragraph 11 violates Section 144 of the Truth in Lending Act, 15 U.S.C. § 1664, as amended, and Section 226.24(c) of Regulation Z, 12 C.F.R. § 226.24(c).

THEREFORE, the Federal Trade Commission this ________day of ________________,
________, has issued this complaint against respondents.

By the Commission.
Donald S. Clark
Secretary
SEAL