The Truth in Lending Act (TILA) was signed into law in 1968. It requires banks and other lending institutions to layout terms and costs related loans in a specific manner. In one case covered by the New York Law Journal on January 8, 2014, a borrower asked the court for partial summary judgment relating to the loan and TILA. The bank assigned to this loan also asked for summary judgment that challenged the borrower’s argument.

The borrower refinanced a mortgage. Later, the bank wanted to foreclose on the property, but the borrower claimed that the mortgage company had made a false claim. The borrower claimed that the mortgage company listed a “finance charge” in the mortgage paper incorrectly. The borrower said that the company listed the charge as $35 less than what the company tried to charge. This action allegedly broke the regulations established by TILA.

According to the bank, the problem with the borrower’s argument is that too much time has elapsed since the mortgage note was signed for the borrower to make a claim against the mortgage company on this matter. Therefore, they argued, the foreclosure could not be rescinded. The court agreed and granted the bank summary judgment.

If you are facing foreclosure, or if you are considering filing for bankruptcy, then you should contact an experienced attorney to find out if bankruptcy is right for you. Jayson Lutzky has helped thousands of satisfied clients over the past 30 years obtain financial freedom. Mr. Lutzky offers free in office consultations at his Bronx, NY office. To set up an appointment, call 718-514-6619. Visit for more information.