Last week I mentioned that the Consumer Financial Protection Bureau has filed amicus curiae briefs in several cases across the United States. In one case in the Tenth Circuit, the court adopted the CFPB’s position in its ruling. I posted that here.
The CFPB’s argument in all of these briefs is that borrowers who do not receive the material disclosures required by TILA are not required to file suit within the three-year rescission period, essentially saying that the borrower can rescind the transaction as long as they provide notice to the lender of the cancellation within three years of consummation.
The Fourth Circuit’s recent ruling is the opposite of the Ninth Circuit’s recent ruling. The Ninth Circuit held a borrower must actually bring the lawsuit within the three year statute of limitations — giving notice is not sufficient.
This is the brief from the Third Circuit Case:
Here’s the brief from the Fourth Circuit case:
From the Eighth Circuit Case:
From the Tenth Circuit case:
What’s hiding in your foreclosure documents? Find out here.