Buick
Buick v. World Savings Bank
Opinion
Opinion
England, J.
MEMORANDUM AND ORDER
Plaintiffs, Elmer and Kathy Buick, filed this action against Defendants, Transamerican Financial Corporation (“Transameriean”) and World Savings Bank (“World”), for claims arising under the Truth in Lending Act (“TILA”), 15 U.S.C. § 1601 et seq., and California’s Unfair Business Practices Act (“UCL”), California Business & Professions Code § 17200 et seq., as well as for fraud, negligent misrepresentation, and breach of fiduciary duty. Plaintiffs subsequently dropped their fraud and negligent misrepresentation claims against all parties, but still maintain their TILA, UCL, and breach of fiduciary duty claims against World. Presently before the Court is World’s Motion to Dismiss those claims.
BACKGROUND
In 2004, World marketed its Pick-a-PaymentSM Equity BuilderSM Mortgage. That loan had an initial low interest rate that expired after three months. The loan was structured in such a way that it could potentially result in negative amortization, which occurs when, despite a customer making the required minimum payments, the principal owed on the loan increases, rather than decreases, over the life of the loan. Plaintiffs allege that referring to a loan that…