Case Updates
Third Circuit enforces detrimental reliance requirement under TILA
December 31, 2009
Agreeing with NCLC, the Third Circuit held that claims for actual damages under the Truth in Lending Act must be supported by proof that a borrower detrimentally relied on an improper finance charge disclosure.
U.S. Chamber files amicus brief
May 05, 2009
NCLC urged the Third Circuit to hold that claims for actual damages under the Truth in Lending Act (TILA) must be supported by proof that a borrower detrimentally relied on an improper finance charge disclosure. According to NCLC, the text of TILA and the weight of its legislative history show that Congress intended a “detrimental reliance” requirement. NCLC warned that relaxing the damages standard would subject the consumer finance industry to virtually limitless and potentially crippling class action litigation.