In a boon for the mortgage lending industry, the 7th Circuit has ruled that the Truth in Lending Act does not allow for rescission of mortgages on a class action basis. The court said the "personal character of the [rescission] remedy makes it procedurally and substantively unsuited to" class actions. An attorney for defendant Chevy Chase Bank noted that although the circuits are consistent in disallowing class action status for rescissions, district court judges nationwide have recently split on the issue.
Mortgage Lenders Fight Off Rescission Class Action in 7th Circuit
The National Law Journal
September 30, 2008