Draper

Plaintiff Thomas N. Draper (Draper) borrowed money from defendant American Funding Limited, individually and doing business as Southern California Funding Limited (American Funding). After making payments for approximately three years, Draper wished to pay off the loan. When American Funding informed Draper it would cost Draper more than the amount borrowed to pay off the indebtedness, Draper brought a declaratory relief action asserting the amount claimed as owing exceeded the limits for prepayment penalties allowed by Civil Code section 2954.9. Draper claimed American Funding’s use of the “Rule of 78’s” to ascertain the amount owing resulted in the error. The matter proceeded to trial. The trial court held that utilizing the Rule of 78’s constituted an excessive prepayment penalty and entered declaratory judgment for Draper. Additionally, the court awarded Draper $5,000 for attorney’s fees pursuant to Civil Code section 1717. American Funding appeals from the judgment. Draper *347 appeals from the award of attorney’s fees arguing he was entitled to a greater sum. We reverse.

Facts

On June 18, 1981, Draper borrowed $75,650 from American Funding for 15 years at 18…