Tag Archives: Regulation Z

Truth in Lending Act and Consumer Leasing Act Dollar Thresholds Raised: Fewer Transactions Exempt

More consumer credit and leasing transactions will be subject to the Truth in Lending Act (TILA) and Consumer Leasing Act (CLA) in 2015. Effective January 1, 2015, the dollar threshold for exemption of most consumer credit transactions and consumer leases from TILA, the CLA, and their implementing regulations (Regulations Z and M) was increased from $53,500 (the … Continue reading this entry

CFPB Proposes Amendments to New Final Ability-to-Repay Rule, Solicits Comment on Calculating Loan Originator Compensation

On January 10, 2013, the CFPB issued its final ability-to-repay rule (Rule), which implements Dodd-Frank mortgage reforms requiring creditors to make a reasonable and good faith determination that a consumer will have a reasonable ability to repay the loan according to its terms. Failure to comply with these requirements may give rise to various damages … Continue reading this entry

The Ninth Circuit Analyzes Procedure for Review of Arbitration Awards

In Johnson v. Wells Fargo Home Mortgage, Inc., the Ninth Circuit addressed issues regarding a district court’s review of an arbitration award, as well as the substantive merits of the plaintiff’s Real Estate Settlement Procedures Act (“RESPA”) claims. 2011 WL 505016 (9th Cir. Feb. 15, 2011). The plaintiff, Wes Johnson, brought suit against Wells Fargo … Continue reading this entry

Supreme Court Watch: Chase Bank v. McCoy

Today, the United States Supreme Court invited the Solicitor General to file a brief expressing the Government’s position on Chase Bank USA, N.A.’s (“Chase”) cert petition with the following question presented: When a creditor increases the periodic rate on a credit card account in response to a cardholder default, pursuant to a default rate term … Continue reading this entry

Federal Reserve Issues Credit Card Act Regulations

The Federal Reserve Board issued final rules yesterday amending Regulation Z and implementing certain provisions of the Credit Card Accountability and Disclosure Act of 2009. Most of the rules are effective February 22, 2010. A couple are already in place. The final rules are more than 1500 pages long counting the commentary, but are summarized … Continue reading this entry

Third Circuit Joins Other Circuits, Holding That a Plaintiff Must Prove Detrimental Reliance to Recover Actual Damages for TILA Disclosure Violation

In Vallies v. Sky Bank, the Third Circuit joined the First, Fifth, Eighth, Ninth, and Eleventh Circuits, holding that the Truth in Lending Act (“TILA”) requires plaintiffs to prove actual damages sustained as the result of a disclosure violation. Plaintiff Vallies entered into a loan and security agreement with the defendant Sky Bank, which financed … Continue reading this entry

Home Equity Line of Credit Reduction Cases on the Rise

There have been a number of lawsuits throughout the country this past year arguing that lenders have unlawfully suspended or reduced home equity lines of credit (“HELOCs”). Although the theory underlying these cases find its genesis in the recent declines in the real estate market, one court has already permitted a claim to proceed. Under … Continue reading this entry

First Circuit Affirms Dismissal of TILA Claim Based on End-of-Month APR Increase; Circuit Split Remains

The First Circuit Court of Appeals has affirmed the District Court of Massachusetts dismissal of a putative class action raising claims under the Truth in Lending Act (TILA) and Massachusetts unfair or deceptive trade practices law. In Shaner v. Chase Bank USA, NA, the named plaintiff (Shaner) claimed that, as a result of her own … Continue reading this entry