Financial Freedom Acquisition, LLC v. Standard Bank and Trust Co.

This case presents question as to whether trial court properly dismissed defendant’s counterclaim, alleging violations of Truth-in-Lending Act (TILA) and seeking rescission of loan that was at issue in underlying foreclosure action. Appellate Court, in affirming dismissal of counterclaim, found that defendant, as trustee of certain Trust, did not qualify as necessary “obligor” for purposes of seeking rescission under TILA, because it had signed mortgage note with notation that had disclaimed any liability to personally pay on said note. (Dissent filed.)