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The Gallmans, a 65-year old couple, had
signed a blank Judgement Note for a home improvement contract, and were told that the cost would be about $600.00. The contractor
filled in the Note for 1631.00 and financed the contract.
The finance company, as the holder indue course, insisted
upon payment. Mr. and Mr. Gallman paid over $1,400 dollars but fell behind $67.00 in their monthly payments. The finance
company sent 2 Sheriff's deputies, and 8 policeman who broke down the door, brutally beat and gassed Mr. and Mrs. Gallman,
put them in jail, and then sold the couple's household goods for $90 th the vice-president of the finance company at the Sheriff
Sale.
Garland Dempsey and neighbors of the Gallmans responded with picket lines, demonstrations, and street corner
rallies until the home improvement company refunded $669.00 and the finance company replaced Mr. and Mrs Gallman's furniture
with new furniture and appliances.
This most notable battle against consumer fraud was publicized in newspapers
from coast to coast. EBONY Magazine carried it as a feature story. Senator Warren Magnuson co-authored a book
with Jean
Carper "The Dark Side of The Market Place" that described the whole abomination.
The senator introduced legislation
that would protect consumers from this type of thing. The bill was passed as "The
Consumer Credit Protection Act of 1968,
which later became "The Truth in Lending Act". The law mandates that consumers
must be told the interest rate and total
cost of a loan before the contract could be completed. This was the first law ever passed for protection of consumer credit
rights in the history
of the United States.
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