Banking

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

Updated on
Published on
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.

Case Facts

  • Status:
    Lawsuit Filed
  • Case Number:
    0:23-cv-02121
  • Filing Date:
    July 13, 2023
  • Jurisdiction:
    U.S. District Courts
  • State:
    Minnesota
  • Court:
    Minnesota District
  • Plaintiff:
    Michael Tischler; Samantha Tischler
  • Defendant:
    Minnco Credit Union
  • Plaintiff Firm:
    Christensen Law Office PLLC
  • Defendant Firm:
  • Claims Administrator:
Contributors
Kevin Salzman, Esq.
Kevin Salzman, Esq.
Reporter and Licensed Attorney
Weekly newsletter

Stay up to date with new class action settlements you may join.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Complaint

This browser does not support inline PDFs. Please download the PDF to view it: Download PDF

Related class action lawsuits

Read more to get notified about updates to each case.

Layma, LLC in Hot Water: Lawsuit Seeks Damages for Predatory Lending
Banking

Layma, LLC in Hot Water: Lawsuit Seeks Damages for Predatory Lending

Lawsuit alleges Layma, LLC used 'rent-a-tribe' scheme to evade state usury laws and engaged in predatory lending practices.
Wahido Lending Faces Lawsuit Over Alleged 400% Interest Rates
Banking

Wahido Lending Faces Lawsuit Over Alleged 400% Interest Rates

Lawsuit alleges Wahido Lending, CreditServe, and Eric Welch violated Indiana's consumer protection laws and RICO, by charging predatory interest rates and using a 'rent-a-tribe' scheme.
MaxLend Faces RICO, Usury Lawsuit Seeking Treble Damages
Banking

MaxLend Faces RICO, Usury Lawsuit Seeking Treble Damages

Indiana resident Mary Hanafi alleges MaxLend and others made predatory, unlawful loans, violating Indiana's usury laws and RICO.
Bank of America Faces Class Action Lawsuit Seeking Damages and Relief
Banking

Bank of America Faces Class Action Lawsuit Seeking Damages and Relief

Bank of America is accused in a class-action lawsuit of violating multiple laws, including the FCRA and TILA, by allegedly misusing customer information.
MinnCo Credit Union Faces Class Action Lawsuit: Tischlers for Truth in Lending Act Violations
Banking

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

Michael and Samantha Tischler allege MinnCo Credit Union violated TILA for misrepresentations and failure to make required disclosures
Big Picture Loans Class Action Lawsuit over Predatory Lending Practices
Banking

Big Picture Loans Class Action Lawsuit over Predatory Lending Practices

Lawsuit alleges Big Picture Loans and its controlling entities violated Illinois laws by making predatory and unlawful loans to residents.
Cleo AI Faces Class Action Lawsuit Over Alleged Usurious Loans
Banking

Cleo AI Faces Class Action Lawsuit Over Alleged Usurious Loans

Class action lawsuit alleges Cleo AI Inc. misled borrowers with hidden fees and triple-digit APRs, violating multiple consumer protection laws.
Cascade Spring Credit Class Action for Alleged Predatory Loans
Banking

Cascade Spring Credit Class Action for Alleged Predatory Loans

Cascade Spring Credit is facing a class action lawsuit alleging it made illegal loans to Illinois residents, violating various consumer protection laws.