(United States Court of Appeals for the Eight Circuit)
(United States Court of Appeals for the Sixth Circuit)
There is confusion over when consummation of a loan occurs. If a loan is not funded or, in the case of a dealer contract, sold to a lender and subsequently funded, was it ever a consumer loan?
Vallies purchased a truck from Phil Fitts Ford. The dealership arranged financing for Vallies through Sky Bank. Guaranteed Auto Protection (GAP) insurance was purchased and financed in the transaction.
Updated 4/21/04 The United States Supreme Court has reversed the Sixth Circuit (Pfennig v Household Credit Service, Inc. and MBNA America Bank, N.A.) and held that over limit fees are not a finance charge and need not be disclosed as such.
In Koons Buick Pontiac GMC, Inc. v. Nigh, the U.S. Supreme Court determined the effect of the 1995 amendments to the damages limits for Truth in Lending violations.
Customer bought a used car and financed it through the dealership. The salesman presented the contract, with all required Reg Z disclosures, to the customer in quadruplicate for review and signature.
If you're new to banking, you've undoubtedly run into references to the Rodash case, but may not know the background.
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