The Sound of Silence: The Continuing Debate Over Class Action Rescission Under TILA

30 Pages Posted: 18 Sep 2009 Last revised: 29 Oct 2012

See all articles by Jo J. Carrillo

Jo J. Carrillo

UC, Hastings College of the Law

Date Written: September 18, 2009


In 1995, Congress amended TILA so that massive lender liability could no longer result from minor errors in disclosure. In that same year, Congress passed a moratorium on class action claims under TILA; the moratorium was lifted on October 1, 1995. The new amendments balanced lender and consumer interests by raising the TILA tolerance bar from $10 to $100. Cases that fell above the new $100 tolerance bar could proceed forward on the merits; those that fell below could not.

This paper analyzes decisional law on the issue of whether class action TILA rescission remains an available remedy for consumers. In this current housing crisis, lenders argue that class action rescission should not be available given the potential for large liability. Consumers, particularly those who seek out pre-default or pre-bankruptcy remedies, assert that TILA should allow rescission in class form.

Keywords: Truth in Lending, mortgage lending, rescission, class action rescission

JEL Classification: A10, A11, A12, A13, A14, A19

Suggested Citation

Carrillo, Jo J., The Sound of Silence: The Continuing Debate Over Class Action Rescission Under TILA (September 18, 2009). Hastings Business Law Journal, Forthcoming, Available at SSRN:

Jo J. Carrillo (Contact Author)

UC, Hastings College of the Law ( email )

200 McAllister Street
San Francisco, CA 94102
United States
(415) 565-4866 (Phone)

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