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Roman v. First Franklin Financial Corp., No. 00-7228, 2001 WL 322563 (N.D. Ill. Mar. 3, 2001)

The plaintiff in this case brought a class action complaint, alleging that the defendant had violated the Truth in Lending Act (TILA) by failing to disclose a security interest in connection with a mortgage loan.  This was one of many lawsuits challenging disclosures coincident with the use of the 1-4 family rider.  VBLH&C obtained a denial of class certification, arguing that class certification was improper for at least two reasons.  First, VBLH&C argued that the plaintiff had failed to establish that there were a sufficient number of challenged loans to make class treatment appropriate.  Second, VBLH&C argued that determining which class members had received personal (as opposed to business) loans – and so could recover under TILA – would require extensive individual inquiries.  The court’s denial of class certification stood in contrast to many other courts certifying 1-4 family rider claims.