Halloran v. North Plaza State Bank

Royse, J.:

This case arises out of a closed-end consumer loan which plaintiffs’ (Bernard and Della Hallorans’) grandson Eric D. Halloran obtained from North Plaza State Bank (Bank) on June 23, 1989. Eric took the loan to refinance a prior loan and to pay taxes. The note was secured by a 1979 Subaru station wagon and was guaranteed by Bernard Halloran.

Eric defaulted on the loan and, on September 29, 1989, filed for bankruptcy. After the default, Eric surrendered the car to the Bank and the Bank disposed of the car through a private sale. The Bank did not give notice to plaintiffs or Eric that…