Page 39 - GIADA-April-2018

THE CARLAWYER ©

eventually returned the car and accepted accurately to Rojas. The appellate court Rojas v. X Motorsport, Inc., 2018 U.S. App.
a return of his down payment from XMI. rejected Rojas’s argument that the TILA LEXIS 2857 (7th Cir. (N.D. Ill.) February 6,
He then sued XMI for violating the Truth disclosures should have been labeled as 2018)
in Lending Act, alleging that the financing “estimates” because they depended on
terms in the RIC were not disclosed in a condition subsequent, i.e., financing. So, there’s this month’s roundup! Stay legal,
a “meaningful” way because the terms Relying on one of its prior decisions, the and we’ll see you next month. n
were conditioned upon finance company appellate court concluded that a condition
approval. Both parties moved for summary subsequent, such as securing financing, Tom (thudson@hudco.com) is Of Counsel
judgment. The trial court granted XMI’s does not render TILA disclosures inaccurate and Nikki (nmunro@hudco.com) is a
motion. or mere “estimates;” if the condition occurs, Partner in the law firm of Hudson Cook,
the disclosures provide the “set rate” for LLP. Tom has written several books and is the
The federal appellate court affirmed. The that agreement. publisher of Spot Delivery®, a monthly legal
court reasoned that TILA was enacted to, newsletter for auto dealers. He is the CEO of
among other things, “assure the meaningful The appellate court noted that its CounselorLibrary.com, LLC and the Editor
disclosure of credit terms.” For disclosures conclusion is supported by language in in Chief of CARLAW®, a monthly report
to be “meaningful,” creditors must clearly TILA stating that if information disclosed of legal developments for the auto finance
and accurately state material terms relevant “is subsequently rendered inaccurate as the and leasing industry. Nikki is a contributing
to the transaction, including the annual result of any act, occurrence, or agreement author to the F&I Legal Desk Book and
percentage rate of interest, the finance subsequent to the delivery of the required frequently writes for Spot Delivery®. For
charge, the amount financed, the total of disclosures, the inaccuracy resulting information, visit www.counselorlibrary.
payments, and the total sale price. therefrom does not constitute a violation com. © CounselorLibrary.com 2018, all
of … [TILA].” Therefore, the appellate rights reserved. Single publication rights
The appellate court found that the RIC court held that the disclosures in the RIC only, to the Association. (4/18). HC/4814-
provided these disclosures clearly and complied with TILA. 8603-6576v1.

we are. counselorlibrary.com

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GIADA Independent Auto Dealer APRIL 2018 | 37