OLYMPIA--Washington borrowers applying to have their loans rescinded under the federal Truth in Lending Act (TLA) won't be allowed to if the proceeds were used primarily for business purposes.
The Supreme Court has upheld a recent Court of Appeals case (77708-0) against petitioner Terry Brender, who argued that his loan from Cashmere Valley Bank should be rescinded based on provisions of the TLA. The court found that loans that qualify as both exempt (business) and non-exempt (personal) from TLA are considered exempt if most of their proceeds are allocated for commercial purposes.
The original suit, filed in 2001, also found against Brender. He must now pay $150,000 in default plus attorney's fees.
Most of the judges on the New Mexico Court of Appeals get a failing grade when it comes to the "expansion of liability," according to a judicial evaluation report.
