Legal News for Credit Union Managers Since 1990
« False Application: Nondischargeable Debt
Collateral Removed From State – Renewal of Perfected Lien »
18
Nov
2021

Truth in Lending Violation: Collateral Not Identified

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.

Author: Charles R. Harroun, Attorney at Law



This entry was posted on Thursday, November 18th, 2021 at 8:51 am and is filed under National, Secured Loans, 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.

Leave a Reply

Your comment

Powered by WP Hashcash

  • Recently Posted Articles written by: Charels R. Harroun, Attorney at Law

    • Incompetency Defense in Collection Suit
    • Protecting Home Equity Mortgage Portfolios
    • Defective Automobile Lien Enforced
    • Preferential Transfer: Creditor Retains Debtor Garnishment Funds Received within 90-Days of Bankruptcy Filing
    • Refinanced Debt Fraud – No New Money
    • Collateral Taken Out-of-State
    • Chapter 13 Plan Cures Arrearage
    • Fraudulent Check Endorsement by Borrower
    • Creditor Required to Release Lien
    • Collection Letter Not Required Before Filing Suit
    • Insurance Lapse: Lift Stay & Repossess Collateral

  • Website Builder

2009-2020 Copyright Harroun, P.C. | Credit Union Legal Newsletter powered by WordPress and Uchilla
Subscribe: Entries (RSS) and Comments (RSS)