Horton v. Middle Georgia Bank

McMurray, Presiding Judge.

Plaintiff borrowed $20,000 from the Middle Georgia Bank in order to purchase a “lounge.” The transaction was evidenced by a promissory note which plaintiff executed on October 1, 1980. The note bore interest at the annual percentage rate of 14.51. It provided that in the event of prepayment, a refund of the finance charge would be calculated by applying the Rule of 78’s method. It also provided that in the event of default, the balance due would be calculated by applying a pro-rata method to the finance charge.

In the fall of 1985, plaintiff fell into arrears and the…