Richard E. Moore and Maria L. Moore, Etc. v. Great Western Savings and Loan Association
Opinion
Opinion
Wright, J.
Before CARTER and WRIGHT, Circuit Judges, and EAST, District Judge.
This is an appeal from a summary judgment granted to defendant Great Western in an action brought for damages under the Truth in Lending Act, 15 U.S.C. § 1639 (a) et seq. We affirm.
When the plaintiffs financed their home with a first mortgage loan from Great Western and, as part of the financing agreement, $123 was withheld from the amount of the loan as an impound to pay insurance and taxes on the property, the borrowers were also required to place 1/12 of the annual taxes and insurance premiums in an impound account each month. These funds were deposited to an account which paid no interest to plaintiffs, although Great Western invested them and obtained a return of approximately 4.84% on the average balance.
Plaintiffs alleged that the bank failed to disclose that it earned interest on these funds and that they were correspondingly denied the interest actually accrued. They sued for themselves and for all others similarly situated. Although the defendants moved to deny class standing, the court had not reached this issue when it dismissed on the merits.