The 7th U.S. Circuit Court of Appeals, in a 2-1 decision on Sept. 24, averts the potential of significant damages for creditors accused of violating disclosure requirements in some of the exotic mortgage vehicles that exacerbated the mortgage market meltdown and has Congress contemplating ways to restore credit market confidence.
The circuit decision joins an earlier ruling by the 1st and 5th circuits and one California state appellate court that have held that the Truth in Lending Act (TILA) does not allow claims for rescission in a class action format.
