Lawyers for Foreclosure and Consumer Debt Clients Call on Federal Reserve to Keep Existing Loan Laws Intact and Protect Borrowers’ Rights
Legal Services E-lert
Bibliographic Info:
Author: Jondi Gumz
Source: Santa Cruz Sentinel, “Truth in Lending Act Changes Opposed by Consumer Attorneys”
Date: December 14, 2010
The Santa Cruz Sentinel reports: “Two local attorneys representing homeowners fighting foreclosure have joined more than 200 lawyers, more than 30 legal services organizations and a dozen consumer advocacy groups asking the Federal Reserve governors to preserve the right of borrowers to cancel a loan if they do not receive proper disclosures. . . . The Fed announced the proposed changes, which run 250 pages in the Federal Register, Sept. 24 and is accepting comments until Dec. 23. Existing law, enacted in 1968, allows consumers up to three years to cancel a loan through a process known as rescission if they did not receive proper disclosures when the loan was closed. The proposed change would require the borrower to repay the loan before the loan could be canceled instead of afterward, which is the current procedure. ‘This proposal would make it completely useless to all but the wealthiest borrowers,’ according to letter signed by the Center for Responsible Lending, Consumer Action and the National Coalition of Reinvestment Coalition.”