Class Retreat from Mass Deceit: Assessing Class Action Compatibility with Truth in Lending Act Rescission
Start Date
24-3-2010 1:30 PM
Description
The Truth in Lending Act (TILA) provides for two primary civil remedies for aggrieved borrowers who received misleading loan disclosures: damages and rescission. While the damages remedy caps class-action damages recoveries, TILA's rescission remedy is completely silent on class action treatment. Despite a district court split on the amenability of the class action device for TILA rescission, the only two federal Circuit Courts of Appeal to consider the issue have foreclosed the right of borrowers to seek class-wide rescissory relief. This Article compares the judicial analysis in these two cases and finds that both courts erroneously construed TILA rescission in favor of lender rights and overstepped their constitutionally delegated power by completely foreclosing a right absent clear congressional intent.
Class Retreat from Mass Deceit: Assessing Class Action Compatibility with Truth in Lending Act Rescission
The Truth in Lending Act (TILA) provides for two primary civil remedies for aggrieved borrowers who received misleading loan disclosures: damages and rescission. While the damages remedy caps class-action damages recoveries, TILA's rescission remedy is completely silent on class action treatment. Despite a district court split on the amenability of the class action device for TILA rescission, the only two federal Circuit Courts of Appeal to consider the issue have foreclosed the right of borrowers to seek class-wide rescissory relief. This Article compares the judicial analysis in these two cases and finds that both courts erroneously construed TILA rescission in favor of lender rights and overstepped their constitutionally delegated power by completely foreclosing a right absent clear congressional intent.
