William Johnson and Joan Johnson, His Wife, and Cross-Appellees v. McCrackin Ford, Inc., and Ford Motor Credit Company, Inc., and Cross-Appellants

OPINION OF THE COURT

JAMES HUNTER, III, Circuit Judge:

This appeal presents a question of great importance to consumers and to persons and institutions extending consumer credit in the United States. We are called upon to determine whether the Truth in Lending Act 1 and Regulation Z 2 thereunder require a creditor to disclose an acceleration clause where state law provides that the creditor must rebate the unearned portion of the finance charge. 3

I

On January 20, 1973, William and Joan Johnson (hereinafter “plaintiffs”) purchased a used Ford automobile from McCrackin-Sturman Ford, Inc.,…