McDaniel v. Fulton National Bank

GEE, Circuit Judge:

We here reconsider en banc the rule of Martin v. Commercial Securities Co., 539 F.2d 521 (5th Cir. 1976), that neither an acceleration clause nor the lender’s rebate policy with respect to acceleration clauses must be disclosed under the Truth-in-Lending Act (the Act).1 Our panel held itself *950bound by Martin and so holding, disposed of these appeals on its authority.2 We reverse.

We agree with Martin that a mere right in the lender to accelerate payments upon the event of a late payment is not a charge and hence need not be disclosed under the Act. But we are unable to free…