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05
Sep
2018

Bank Violates Truth in Lending Act

Security State Bank of Hamilton issued a loan of nearly $17,000 to Jerry and Henrietta Marshall in exchange for the Marshall’s pledge of a security interest in the debtors’ new car.

Debtors signed the promissory note and pledge of security.

The bank’s personnel, however, failed to identify the pledged security on the Truth-in-Lending disclosure.

Debtors’ filed a complaint against the bank for violating the Truth-in-Lending Act.

The court found that the failure of the bank to note the pledged collateral on the Truth-in-Lending disclosure definitely violated the Act. The court awarded $1,000 against the bank and awarded costs and attorney fees to the debtor. Marshall v. Security Bank of Hamilton, 132 B.R. 904.

By Charles R. Harroun, Attorney at Law



This entry was posted on Wednesday, September 5th, 2018 at 4:31 am and is filed under National, Truth In Lending. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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