Susan and Bryan Andrews hoped that refinancing their home with a 1.95 percent mortgage for five years would free up cash to send their children to college.
But when they started repaying Chevy Chase Bank in 2004, the Cedarburg, Wis., couple said they were shocked to learn that the ultra-low interest rate the bank promised applied only to their first payment.
The circuits unanimously agree so far that class relief is not available for TILA rescission claims. The 1st and 5th Circuits, and California's court of appeals, have all turned thumbs down. After the 7th Circuit followed suit, the Andrews' attorneys announced their intention to ask for an en banc rehearing. But Robert Maddox, a mortgage industry defense litigator with Bradley Arant Rose & White in Birmingham, Ala., predicts TILA rescission class actions are doomed. "Traditional plaintiffs' class action lawyers are now out of the game, and we are seeing cases done more by solo practitioners and legal aid," Maddox observes.