Pugh v. Hermitage Loan Co.

This is a controversy between a “small loan company,” qualified and operating under Code, sections 6721-6743, and its borrower. At the suit of the latter, the chancellor decreed the cancellation of his obligation to the company, upon the chancellor’s finding, supported by stipulations of fact, that the sums paid by the borrower were sufficient to satisfy all legally enforceable claims of the lender.

On March 16, 1927, Pugh borrowed $300' from the loan company. There followed a series of eight similar transactions, the last being on April 15, 1933. On or before the maturity of each loan, a new…