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MacKey v. Household Bank, FSB

Citations: 677 So. 2d 1295; 1996 WL 382276Docket: 94-2958

Court: District Court of Appeal of Florida; July 10, 1996; Florida; State Appellate Court

Narrative Opinion Summary

The District Court of Appeal of Florida affirmed a summary final judgment of foreclosure against the appellants, confirming the absence of violations of the Federal Truth in Lending Act (TILA). The court found that the state intangible tax and a non-refundable application processing fee were both properly itemized and excluded from the finance charge, in accordance with TILA's regulations. Furthermore, the lender's payment schedule disclosure met TILA requirements by clearly stating the number of payments, the amount per payment, and total payments, effectively informing consumers of their payment obligations. The court distinguished this case from others by underscoring that the disclosure adequately indicated due dates and numbers of payments, thus fulfilling TILA's mandate for meaningful credit term disclosures. Regulation Z requires the use of standardized terms for consumer credit comparisons, yet allows minor deviations from prescribed language if disclosures remain clear and substantial. The court dismissed the appellants' contention that the payment schedule had ambiguous interpretations, reinforcing the principle that enforcement should be guided by common sense and practical human experience.

Legal Issues Addressed

Disclosure of Application Processing Fee under TILA

Application: The court ruled that the $50 non-refundable application processing fee was accurately disclosed and therefore excludable from the finance charge.

Reasoning: Additionally, a $50 non-refundable application processing fee was correctly disclosed and excluded from the finance charge.

Disclosure of State Intangible Tax under TILA

Application: The court determined that the $75.29 state intangible tax was properly itemized and disclosed, making it excludable from the finance charge under TILA.

Reasoning: The court found that the $75.29 state intangible tax was properly itemized and disclosed to the consumers, making it excludable from the finance charge under TILA.

Interpretation of Disclosure Requirements under TILA

Application: The court emphasized that while strict compliance with TILA's terms is essential, minor deviations are permissible if disclosures remain substantial and clear.

Reasoning: While strict compliance with these terms is essential, proper disclosure of the payment schedule under the Truth in Lending Act (TILA) does not necessitate absolute semantic precision.

Payment Schedule Disclosure under TILA

Application: The court found that the lender's disclosure of the payment schedule met TILA requirements, ensuring consumers were informed of their monthly payment obligations.

Reasoning: The lender's payment schedule disclosure met TILA requirements, clearly stating the number of payments (180), the amount per payment ($476.61), and total payments ($85,789.80).

Reasonable Consumer Standard in TILA Disclosures

Application: The court rejected claims that the payment schedule disclosure was misleading, as it reasonably informed consumers of their obligations.

Reasoning: The court rejected the appellants' argument that the disclosure was misleading, noting it sufficiently informed a reasonable consumer of the monthly payment obligation.