Claims Made Under Truth-In-Lending Act Subject to Arbitration Even If Brought In Bankruptcy Court
February 22, 2007
In the case of In re Cooley, — B.R. —-, 2007 WL 512758 (Bkrtcy.N.D.Ala.,2007), the court was confronted with the question of whether a lender could compel arbitration of claims made for violations of the Truth in Lending Act (”TILA”). The lender argued that the debtor’s claims should be submitted to binding arbitration in accordance with the terms of an arbitration agreement signed by the Plaintiff when she purchased and financed the truck. The court, in agreeing with the lender, found that the adversary proceeding commenced by the debtor was not derived from the bankruptcy laws, and there was no inherent conflict between enforcement of the parties’ arbitration agreement and the underlying purposes of the bankruptcy laws. Thus, the court did not have the discretion to refuse to enforce the arbitration agreement.
Technorati Tags: TILA, bankruptcy, truth in lending
Comments
Got something to say?
You must be logged in to post a comment.