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Mayo Co-Lead Counsel in Class Action Against Credit Card Company, Bank in Alleged Violations of Federal Lending Laws

 The Truth in Lending Act mandates certain disclosures to consumers in connection with seeking or taking out credit in their name.  At this time, this class action alleges that Genesis Credit and Mid-America Bank failed to do so in a systemic way in connection with a proposed class of consumers.

The Truth in Lending Act mandates certain disclosures to consumers in connection with seeking or taking out credit in their name.  At this time, this class action alleges that Genesis Credit and Mid-America Bank failed to do so in a systemic way in connection with a proposed class of consumers.


Overview

On Thursday, March 8, 2018, Mack Mayo of The Law Office of Boyd M. Mayo, PLLC in Spokane, Washington, along with Toby J. Marshall and Elizabeth A. Adams of the Terrell Marshall Law Group, PLLC in Seattle, Washington, filed a proposed class action in the United States District Court for the Eastern District Court of Washington on behalf of a national class of consumers against Genesis Credit and others for violation of, among other things, the Federal Truth in Lending Act.


What is the Truth in Lending Act?

Congress’s purpose in enacting TILA was to “assure a meaningful disclosure of credit terms so that the consumer will be able to compare more readily the various credit terms available to him and avoid the uninformed use of credit, and to protect the consumer against inaccurate and unfair credit billing and credit card practices.” 15. U.S.C. § 1601(a).  TILA requires the creditor to furnish an array of account-opening disclosures before a credit consumer initially uses his account to purchase goods or services. 15 U.S.C. § 1637(a); 12 C.F.R. § 1026.6(b). These disclosures include:

a.              Information regarding the APR used to compute the finance charge, including an explanation of any introductory or promotional rates, variable rates, and penalty rates;

b.              Any fees for the issuance of the account;

c.              Any fixed finance charges or minimum interest charges;

d.              Any transaction charges;

e.              Any grace period before finance charges begin to accrue;

f.               An explanation of the method of computing the balance due;

g.              An explanation of various fees, if applicable;

h.              A reference to the Bureau of Consumer Financial Protection’s website; and

i.               A billing rights notice regarding the consumer’s right to dispute transactions.

The account-opening disclosures must be made “clearly and conspicuously” and, with limited exceptions, must be “in writing, in a form that the consumer may keep.” 12 C.F.R. § 1026.5(a)(i). Further, most of the required disclosures regarding interest rates and fees must be contained in a tabular format substantially similar to form G-17(A) of Appendix G to 12 C.F.R. Part 1026.


Unfortunately, consumer credit transactions are fertile grounds for unfair and deceptive business practices intended to dupe unwitting consumers into paying more than they understand. The Truth in Lending Act mandates certain disclosures in credit transactions so that consumers can fully understand all of the loan’s terms, including how much it will cost them in the long run. It is a powerful consumer protection statute.
— Mack Mayo

Who is included in the class action?

Janet Stone, the Named Plaintiff and Class Representative, at this time, proposes to represent the following class of persons:

"All persons in the United States who, on or after March 8, 2017, obtained a Genesis Credit Account issued by Mid America Bank & Trust Company at an Aspen Dental location."


I think this happened to me or I may be a member of the class.  What should I do?

If you believe you are a member of the proposed class or this happened to you elsewhere, click here to set up a confidential consultation.  We look forward to hearing from you.


Press Inquiries

Members of the press may contact Mack Mayo, Toby Marshall, or Elizabeth Adams with any relevant inquiries.

Mack Mayo