Dwight M. Smartt and Nicolette T. Smartt

UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF MARYLAND
at Greenbelt
IN RE: :
:
DWIGHT M. SMARTT : Case No. 05-13204PM
NICOLETTE T. SMARTT : Chapter 13
:
Debtors :
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - :
DWIGHT M. SMARTT :
NICOLETTE T. SMARTT :
Movants :
vs. :
:
SUNTRUST MID-ATLANTIC BANK :
Respondent :
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - :
MEMORANDUM OF DECISION
This matter came before the court on the unopposed Motion to value a 2000 Mazda
Millenia filed by the Debtors. The Motion was set for hearing following the Memorandum of the
court entered April 21, 2005. The court was advised that the parties agreed to a valuation of
$10,745.00.
The court was concerned with two components of the valuation: (1) a repair contract and
(2) a credit insurance contract. What was remarkable about the credit insurance contract was that
the Debtors had paid $2,221.27 for a joint credit life insurance policy. The policy was a
decreasing term policy covering payments of $594.24 a month for 59 months, and a balloon
payment of $9,198.40. It is unlikely that if the Debtors had shopped around they could have
found a more expensive policy with fewer benefits. Counsel for SunTrust Bank was unable to
Date signed May 19, 2005
Entered: May 19, 2005 Case 05-13204 Doc 34 Filed 05/19/05 Page 1 of 2

state the commissions earned on this consumer ripoff. In addition, the court is advised that if the
automobile loan had been paid off prior to the end of its term, the Debtors would not have been
entitled to any rebate on the unearned portion of the insurance.
Much has been stated by the credit industry in connection with obtaining passage of the
Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, but nothing was said to
protect honest debtors from depredation such as that perpetrated by SunTrust Bank in this
instance. Counsel for the Movants shall submit an appropriate order.
cc:
Jonathan C. Silverman, Esq., 4704 Hollywood Road, College Park, MD 20740
Dwight/Nicolette Smartt, 9515 50th Place, College Park, Md 20740
Linda F. Rigsby, Resident Agent, Suntrust Mid-Atlantic Bank,
919 East Main Street, Richmond, VA 23219
Suntrust Bank, Attn: Support Services, Kenneth A.G. Reeves, Consumer Finance Officer
P.O. Box 85092, Richmond, VA 23286
Nancy S. Grigsby, Trustee, P.O. Box 958, Bowie, MD 20718
Charles T. Hill, President and CEO, SunTrust Midatlantic Bank,
25 Park Place N.E., Atlanta, GA 30303
End of Memorandum
Case 05-13204 Doc 34 Filed 05/19/05 Page 2 of 2