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Posts tagged as “TILA”

3rd Cir. Holds TILA Does Not Require Breakdown of Annual Credit Card Fee

The U.S. Court of Appeals for the Third Circuit recently affirmed the dismissal of a consumer’s claims under the federal Truth in Lending Act, 15 U.S.C. § 1601 et seq., and its implementing regulation, Regulation Z, 12 C.F.R. § 1026. In so ruling, the Third Circuit held that TILA does not require disclosure of each individual component of the total annual fee in a renewal notice for a credit card.

Illinois App. Court (1st Dist) Rejects Appraiser’s Claim Against Lender for De-Listing Him and Notifying AMCs

The Court of Appeals of the State of Illinois, First District, recently affirmed a summary judgment ruling in favor of a mortgage lender on an appraiser’s claims of intentional interference with a business relationship arising from the lender barring the appraiser from working on its loans and notifying various appraisal management companies of this decision.

Calif. App. Court (4th Dist) Holds Prior Unlawful Detainer Judgment Did Not Bar Borrowers’ Current Claims

The California Court of Appeal, Fourth Appellate District, recently held that a trial court erred in ruling that several borrowers' claims were precluded by a prior unlawful detainer judgment entered against them following the foreclosure sale of their home.

6th Cir. Holds Lender Violated TILA’s ‘Ability to Repay’ Income Verification Rule

In an unpublished opinion, the U.S. Court of Appeals for the Sixth Circuit recently held that a mortgage lender’s reliance upon the borrower’s representations concerning the amount of his future spousal support and rental income without proper verifiable documentation were insufficient to satisfy the “ability to repay” income verification requirements arising under the federal Truth in Lending Act and its implementing regulation (“Regulation Z”).

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.

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.

9th Cir. Affirms Dismissal of TILA Claims as Barred by FIRREA

The U.S. Court of Appeals for the Ninth Circuit recently affirmed the dismissal of a consumer’s Truth in Lending Act (TILA) claim for lack of subject matter jurisdiction, holding that the claim was barred by the jurisdiction-stripping provision of the federal Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA).

5th Cir. Reverses Denial of Motion to Compel Arbitration in TILA Case

The U.S. Court of Appeals for the Fifth Circuit recently reversed the denial of a lender’s motion to compel arbitration in an adversary bankruptcy proceeding for allegedly violating the federal Truth in Lending Act (TILA), holding that -- despite conflicting clauses in two different relevant agreements -- the parties had entered into a valid arbitration agreement that delegated the threshold issue of arbitrability to the arbitrator.

9th Cir. Holds Ex-Husband Had No Right to Cancel Under TILA

The U.S. Court of Appeals for the Ninth Circuit recently affirmed a trial court’s summary judgment ruling in favor of the financial services defendants in an action to rescind the mortgage under the federal Truth in Lending Act. In so ruling, the Ninth Circuit held that the plaintiff consumer did not have a right of rescission under TILA, 15 U.S.C. § 1601 et seq., because he previously quitclaimed his interest in the property to his ex-wife, and his new loan to acquire the property from his ex-wife was a “residential mortgage transaction.” A copy of the opinion in Barnes v.…

NJ Supreme Court Holds Invalidity of Transaction as a Whole Does Not Negate Arbitration Agreement

The Supreme Court of New Jersey held that where a plaintiff challenges the validity of a transaction as a whole and not specifically the arbitration agreement that is included as part of a transaction, the plaintiff must arbitrate their claims because an arbitration agreement is severable and enforceable, notwithstanding a plaintiff’s general claims about the invalidity of the transaction as a whole. Accordingly, the judgment of the appellate court was reversed and the trial court orders compelling arbitration were reinstated. A copy of the opinion in Goffe v. Foulke Management Corp. is available at:  Link to Opinion. The plaintiffs each purchased cars…