Harvard's Deferred Payment Plan, which allows students to pay their University bills in monthly installments, may be in violation of the Massachusetts Truth-in-Lending Act, the Harvard Law Record reported yesterday.

The possible violation exists in the failure of the Harvard Loan Department's Deferred Payment Plan form to specify as interest the $15 per semester "service charge."

The question of the legality of this charge, will be considered at a meeting next week of Harvard attorneys, Ropes and Gray, and the Massachusetts Bank and Banking Department.

James A. Sharaf of the University Counsel's Office, declined to comment until after the meeting with the Banking Department next week.

Allen Taylor, a third year student at the Law School, said each student participant in the plan would be entitled to "liquidated damages" of $100 each if the Banking Department rules that a violation on the University's part does exist.

About 4000 students throughout the University participate in the deferred payment plan.