In Re McMurray

MEMORANDUM

MARCIA PHILLIPS PARSONS, Bankruptcy Judge.

This case is before the court on the debt- or’s objections to the claims of Blazer Financial Services, Inc. (“Blazer”) and City Finance Company (“City Finance”). The debtor asserts that the claims should be disallowed in part because they include unma-tured interest in violation of 11 U.S.C. § 502(b)(2) in that the balances were derived by the “Rule of 78.” The court agrees and for the reasons set forth below, the objections will be sustained. This is a core proceeding. 28 U.S.C. § 157(b)(2)(B).

I

On March 6, 1997, the debtor commenced this…