Troutman Sanders Wins TILA Trial
On March 31, 2011, following a trial on the plaintiffs’ TILA claims against the defendant national lender, a federal court held the plaintiffs were not entitled to loan rescission or any other relief.
The plaintiffs alleged that during the loan closing the defendant lender did not provide them with the required number of the notices of right to cancel the loan in violation of the federal Truth in Lending Act (“TILA”) and that the lender failed to respond to their subsequent request for loan rescission. The plaintiffs sought rescission of the loan, cancellation of the promissory note and deed of trust, reimbursement of the loan payments made by the plaintiffs to the lender, reasonable damages, and attorney’s fees.
Based on the evidence and testimony at trial, the Court found that the plaintiffs failed to overcome the presumption of delivery of the required four notices of the right to cancel the loan. Accordingly, the Court held that the defendant lender BAC Home Loans Servicing, LP did not violate TILA and that plaintiffs were not entitled to the requested relief. A copy of the Court’s Memorandum Opinion is attached here. Perks v. BAC Home Loans Servicing, LP, No. 5:10-ap-00032 (Bankr. N.D. W. Va. Mar. 31, 2011) (Flatley, J).
John Lynch is counsel of record for BAC Home Loans Servicing, LP. Please do not hesitate to contact John Lynch if you have questions.