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93 Banking L.J. 317 (1976)
The Acceleration Clause as a Truth in Lending Disclosure: The End of the Dilemma

handle is hein.journals/blj93 and id is 317 raw text is: THE ACCELERATION CLAUSE AS A TRUTH IN LENDING DISCLOSURE: THE END OF THE DILEMMA? Lawrence P. Galie* One of the purposes of the Truth in Lending Act' is to assure a meaningful disclosure of credit terms so that the consumer will be able to compare more readily the various credit terms available to him and avoid the uninformed use of credit. . . . 2 It is, therefore, not surprising to find that precisely what must be disclosed to the consumer is one of the most litigious questions concerning Truth in Lending today. And because use of acceleration clauses is universal in install- ment credit notes,' one of the most pressing of these dis- closure questions is whether an acceleration clause is a required disclosure.! Several courts have considered this important question, but they have split over the proper analysis.? This note will discuss a recent case in the area, Barrett v. Vernie Jones Ford, Inc.,' a case which with its * B.A., Pennsylvania State University. 1 15 U.S.C. H§ 1601-1666j. (1968). The Truth in Lending Act is Title 1 of the Consumer Credit Protection Act, 15 U.S.C. H% 1601-1691e. The other purpose is to protect the consumer against inaccurate and unfair credit billing practices. 2 15 U.S.C. § 1601. 3 For a hundred years, it may be, no security agreement has failed to include an acceleration clause. II Gilmore, Secured Interests in Personal Property 43.4 (1965). 4 This situation led one court to remark, the question of whether a creditor's right to accelerate unpaid indebtedness in the event of default is a 226.8(B)(4) Regulation Z 'charge' represents one of the most significant is- sues being litigated among the several hundred Truth in Lending cases cur- rently pending in this district. McDaniel v. Fulton Nat'l Bank of Atlanta, 4 CCH Consumer Credit Guide f 98,630 at 88,163 (N.D. Ga. 1975) (recom- mendations of special master). 5 See notes 18 and 19 infra. 0 4 CCH Consumer Credit Guide If 98,608 (N.D. Ga. 1975). 317

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