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Illinois App. Court (1st Dist.) Holds TILA ‘Failure to Rescind After Notice’ Claims Subject to 1-Yr Statute of Limitations

The Appellate Court of Illinois, First District, recently affirmed a trial court order dismissing a foreclosure counterclaim by two borrowers seeking rescission under the federal Truth in Lending Act (TILA), 15 U.S.C. § 1601 et seq., holding that section 1640(e)’s one-year statute of limitation for legal damages applied to bar the borrower’s section 1635 equitable claim, when the borrowers demanded rescission within three years of closing but did not file suit within one year after the lender failed to respond.

11th Cir. Holds TCPA Consent Cannot Be Unilaterally Revoked, But Allows Unrelated FCCPA Claim to Proceed

The U.S. Court of Appeals for the Eleventh Circuit recently reversed entry of summary judgment in favor of a satellite television provider against a consumer on claims that it violated the Florida Consumer Collection Practices Act by attempting to collect a debt it knew had been discharged in bankruptcy and directly contacting the plaintiff consumer knowing she was represented by counsel.

Recklessly Disregarding a Nonexistent Risk of Harm: Does Including the Expiration Date on Electronically Printed Receipts Constitute Willful Noncompliance under FACTA?

The Fair and Accurate Credit Transactions Act prohibits merchants from including, among other information, credit- and debit-card expiration dates on printed receipts. After this provision originally became effective in 2004, plaintiff class-action firms flooded courts with expiration date lawsuits, which courts and others “met with varying degrees of contempt.”

9th Cir. Holds Loan Secured by Property Held in Trust for Family Member Can Be ‘Consumer’ Loan

The U.S. Court of Appeals for the Ninth Circuit recently reversed the dismissal of a trustee borrower’s claims under the federal Truth-In-Lending Act, Real Estate Settlement Procedures Act, and California’s Rosenthal Fair Debt Collection Practices Act seeking rescission of a loan obtained to effectuate repairs upon a property inhabited by the trust’s beneficiary.

Texas Supreme Court Holds Subrogation Available for Mortgagee That Fails to Cure Constitutional Defect

Answering a question certified to it by the U.S. Court of Appeals for the Fifth Circuit, the Supreme Court of Texas recently held that a lender is entitled to equitable subrogation where it failed to correct a curable constitutional defect in the loan documents under Tex. Const. art. XVI, 50.

Illinois App. Court (2nd Dist) Holds Bona Fide Foreclosure Sale Not Voided by Latent Defect in Service of Process

The Appellate Court of Illinois, Second District, recently held that improper service that does not affirmatively appear on the face of the record will not allow a former homeowner to void a foreclosure judgment against the bona fide purchasers of the property.

5th Cir. Reverses Sanctions Against Consumer’s Counsel for Failure to Promptly Settle

The U.S. Court of Appeals for the Fifth Circuit recently reversed a trial court’s order sanctioning a consumer’s counsel for failure to promptly settle a lawsuit, but affirmed the trial court's order denying a motion to recuse because the trial court was not biased against the consumer.