Kathryn McOmie v. Bank of America Home Loans

Kathryn McOmie-Gray appeals the dismissal of her lawsuit for failure to state a claim upon which relief may be granted pursuant to Federal Rule of Civil Procedure 12(b)(6). McOmie-Gray sought rescission of her loan secured by a trust deed with Bank of America Home Loans (“the Bank”) for alleged violations of disclosure requirements under the federal Truth in Lending Act (“TILA”), 15 U.S.C. § 1601 et seq. On the Bank’s motion, the district court dismissed the suit as untimely because it was filed after the three-year period set by 15 U.S.C. § 1635 (f). McOmie-Gray argues that because she gave the Bank timely notice of rescission, she was not required to bring suit within the three-year period, and the district court erred in dismissing this case.

For us, the question presented is a matter of first impression. McOmie-Gray cites decisions from several district courts in this circuit that apply the one-year statute of limitations set forth in 15 U.S.C. § 1640 (e), measuring the time from the date on which the lender fails to respond to the borrower’s notice of rescission. We disagree with those courts, and conclude, as set forth below, that the time limit established by 15…