John Mason Kessler v. Associates Financial Services Company

HUFSTEDLER, Circuit Judge:

This case is a companion of St. Germain v. Bank of Hawaii (9th Cir. 1977) 573 F.2d 572, and, like St. Germain, it raises the question whether the Truth in Lending Act (“TILA,” 15 U.S.C. §§ 1601 et seq.) and Regulation Z (12 C.F.R. §§ 226.1 et seq.) require the disclosure statement to reveal the consequences upon unearned finance charges of the creditor’s exercise of its right to accelerate the debt upon default or late payment. The district court concluded that disclosure was required, based on a rationale different from ours in St. Germain. 1 Nevertheless, the court…