Holloway v. Chrysler Credit Corp.

On 13 October 1965, Mr. and Mrs. Holloway purchased from a Virginia dealer a 1965 used Plymouth for $2481.85. They paid $200 in cash and financed the balance of $2281.85 under a conditional sales contract which called for 36 equal monthly installments of $80.94 each, commencing 15 November 1965. The sales contract was immediately assigned by the dealer to Chrysler Credit Corporation (Chrysler).

The contract required the Holloways to insure the automobile against “substantial risk of damage, destruction, or loss for so long as any amount remains unpaid * * *” and, in the event of the Holloways’…