Peoples Trust & Savings Bank v. Armstrong

UHLENHOPP, Justice.

This appeal involves the meaning of “interest” in the exclusion of “interest and costs” under the small claims statute. See § 631.1, The Code 1979.

Defendants Ronald E. and Sandra J. Armstrong borrowed money from plaintiff Peoples Trust & Savings Bank on a note. They paid the note down to $883.88 and thereafter defaulted. By its terms the note bore interest at one percent per month from date of delinquency. At the time the bank subsequently commenced this small claim proceeding, it claimed defendants owed $883.88 principal and $724.06 interest. The bank’s original notice…