Friday, November 03, 2006

Truth in Lending Act primer...

Another good case from the 7th Circuit here that taught me a lot. It's primarily about the federal Truth in Lending Act. Don't ask me for a full explanation, but if you've handled any real estate deals you'll know that the TIL is a general consumer protection for consumers taking out mortgages. One TIL requirement is that a creditor must clearly disclose his right to rescind the loan within 3 days and provide the appropriate form to accomplish this recission.

What you learn from this case is that if the creditor doesn't give the appropriate notice required by TIL, then the period within which the borrower may rescind the loan is extended from three days to up to three years. Interestingly the lender here had included too many rescision forms that the court said made it confusing. It's nice to know something about lending law.

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