Giveth, Taketh, Etc.

The reporters are just littered with suits claiming that lenders are violating federal statutes governing disclosure and reporting requirements. Plaintiffs win on occasion, but they probably lose more often. Such is the case in Sullivan v. Greenwood Credit Union, First Cir. No. 07-2354.

If you look at this case, you'll notice two things. First: the plaintiff's claims clearly don't mesh with the statute under which he sued the lender. It's almost as if the plaintiff's lawyer didn't read the statutory provision under which he was suing before he filed suit. Stranger things have happened.

Second: the statute doesn't mesh with itself. It's complicated, but the essence of it is that Congress creates a cause of action with one hand and then yanks it off the table with the other. The statute prohibits conduct, but then it defines the conduct such that nobody could ever conceivably violate it.

Good to know that Congress continues to spend the people's time so wisely.