Alert November 18, 2008

Third Circuit Rules that Defendant Need Not Specifically Plead TILA Accuracy Tolerances Defense

The Third Circuit ruled that a defendant to a Truth in Lending Act claim need not specifically raise an affirmative defense that its disclosures fell within TILA’s error tolerances. The Court held that TILA’s error tolerance provision creates a general defense, which is not waived if it is not specifically plead, as distinguished from an affirmative defense which might be. The Court concluded that the defendant sufficiently asserted the tolerances defense when it generally denied making any disclosure errors.  Click here for Sterten v. Option One Mortgage Corp, No. 07-2237 (3rd Cir. Sept. 22, 2008).