Commercial and Consumer Credit Law—Class Action Remedy Unavailable in First Circuit for Plaintiffs Seeking Rescission Under Truth in Lending Act—McKenna v. First Horizon Home Loan Corp., 475 F.3d 418 (1st Cir. 2007)

First Circuit Review 2008

The Truth in Lending Act (TILA) provides consumers with the right to rescind their loan agreements within three days of the closing of the transactions.  Beyond this statutory provision permitting consumer recovery, the federal courts remain split as to the availability of class certification for actions brought under TILA.  In McKenna v. First Horizon Home Loan Corp., the United States Court of Appeals for the First Circuit considered, in a case of first impression, the legitimacy of class actions brought under the rescission provisions of TILA.  Relying on its interpretation of congressional intent and the personalized remedy provided by the rescission section, the court held that class certification is unavailable in rescission actions under TILA. . . .