Thomas v. Universal Guardian Corp.

Smith, Judge.

The sole question presented by this appeal is whether the acceleration clause in an installment loan contract is a "default charge” which must be disclosed in the manner required by the federal Truth-In-Lending Act. We conclude that the acceleration clause stated such a "default charge”; therefore, the judgment is reversed.

Universal Guardian Corporation was the assignee of an installment loan agreement with Thomas, the appellant. Thomas defaulted and Universal brought suit for the balance allegedly due, plus statutory attorney fees, interest, and costs. Thomas counterclaimed,…