With regard to Borrowers' TILA rescission claim, the Sixth Circuit noted that TILA created a rebuttable presumption that Borrowers had received the required disclosures when Bank produced a copy of the Notice of Right to Cancel signed by both Borrowers at closing. That Notice, the Court stressed, clearly explained the significance of Borrowers' signatures on the form. Observing in part that Borrowers had submitted affidavits that swore only that their package of disclosure forms remained unaltered since closing -- the so-called "envelope theory," the Court ruled that Borrowers' "envelope theory" was insufficient to rebut the presumption of proper delivery created by the signed Notice.
Ralph T. Wutscher
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