MinnCo Credit Union Faces Class Action Lawsuit: Tischlers for Truth in Lending Act Violations

In a recent turn of events, plaintiffs Michael and Samantha Tischler have filed a class-action lawsuit against MinnCo Credit Union. The complaint alleges that MinnCo violated the Truth in Lending Act (TILA) and its implementing rules under Regulation Z.

The Tischlers' journey began when they applied for a loan from MinnCo to buy out the other owners' interest in their property. The process, however, was not as straightforward as they had anticipated. The complaint alleges that MinnCo failed to provide required disclosures and made misrepresentations related to the material terms and nature of the consumer loan.

According to the lawsuit, 'MinnCo did not provide a loan estimate and notice of right to rescind as required by TILA.' This was just the beginning of the Tischlers' ordeal. They attended a first closing, where they signed various documents, including a balloon note and mortgage. However, MinnCo did not properly close the mortgage loan, and the sellers were still listed as owners on the property tax records.

The situation took a turn for the worse when MinnCo informed the Tischlers that their loan file only had blank forms and that they would need to re-close the mortgage loan. This meant that the Tischlers had to complete the 'work in progress' on their property and upgrade the septic system before the second closing.

Furthermore, MinnCo required the Tischlers to execute a Home Equity Line of Credit Agreement (HELOC) and escrow funds for the work completion. Despite initially stating that a new appraisal was necessary, MinnCo did not conduct one. The Tischlers were also not provided with new disclosures for the changes made at the second closing, including adding Samantha Tischler as a borrower.

The lawsuit alleges that 'MinnCo violated TILA by improperly disclosing the finance charge and understating the annual percentage rate (APR).' In addition to the alleged TILA violations, the complaint also accuses MinnCo of violating Minnesota's Consumer Fraud Act, Mortgage Originator and Servicer Licensing Act, and Private Attorney General Statute.

The Tischlers are seeking certification of the class action, appointment as class representatives, and appointment of their counsel as class counsel. They are requesting statutory damages, actual damages, attorney fees, and other relief for MinnCo's alleged violations of TILA and state laws. The Tischlers are also seeking penalties, actual damages, costs, disbursements, and attorney fees for MinnCo's alleged violations of Minnesota's laws.

The Tischlers have demanded a trial by jury on all claims. As the case unfolds, it serves as a reminder of the importance of transparency and adherence to laws in financial transactions.