Randle v. Americash Loans, LLC

Plaintiff took out installment loan for $2000 from Defendant cash loan company, and then filed suit alleging that company violated Truth in Lending Act and Illinois Interest Act by failing to disclose a security interest. Loan form included EFT authorization form which authorized the company to electronically debit or issue a bank draft against Plaintiff's check account if she was in default, but did not include disclosure of its security interest taken in the EFT authorization. Because authorization allowed company to debit Plaintiff's checking account if she reneged on her promise to repay loan through wage allotment option, Plaintiff sufficiently stated a claim that Defendant took a security interest in her checking account. An instrument that grants a creditor rights to collect the debt beyond those contained in the loan agreement must be disclosed as a security instrument. (HOWSE and LAVIN, concurring.)