First Guaranty Bank v. Alford

COLE, Judge.

The question presented on appeal is whether the disclosure statement provided by a lending institution during a consumer loan transaction violated the federal Truth in Lending Act. Specifically, it must be determined whether the right of the lending institution to charge the promissory note, after maturity, to the checking account maintained with it by the consumer, created a “security interest” within the purview of the Truth in Lending Act.

FACTS

Mrs. Edna Alford, defendant, negotiated a loan from the First Guaranty Bank, plaintiff, where she maintained a checking account. A…