Opinion ID: 738244
Heading Depth: 2
Heading Rank: 1

Heading: the truth-in-lending act

Text: 6 The district court held, inter alia, that Dawkins's Truth-in-Lending Act claims were barred by the one-year statute of limitations. See 15 U.S.C. § 1640(e). On appeal, Dawkins contends that limitations was tolled because Sears has been in continuous violation of the Truth-in-Lending Act. Specifically, Dawkins maintains that Sears continues to run afoul of § 1666(a) of the Act, which details procedures that a creditor such as Sears must follow to resolve alleged billing errors. Dawkins's assertion, however, is not persuasive because Sears is not, and has never been, in violation of 15 U.S.C. § 1666(a). 7 To trigger a creditor's obligation to investigate and verify the disputed billing statement, a consumer must send written notice to a creditor of the alleged error. 15 U.S.C. § 1666(a). This notice must be received by the creditor within 60 days of the creditor's transmission of the statement containing the alleged error. See 15 U.S.C. § 1666(a). Further, the applicable regulation (known as Regulation Z) specifies that the 60-day period begins to run after the creditor [has] transmitted the first periodic statement that reflects the alleged billing error. 12 C.F.R. § 226.13(b)(1) (emphasis added); see also Pinner v. Schmidt, 805 F.2d 1258, 1264 (5th Cir.1986) (holding that the 60-day notice period begins to run when a disputed statement is first received), cert. denied, 483 U.S. 1022, 1032, 107 S.Ct. 3267, 3276, 97 L.Ed.2d 766, 780 (1987). Upon the timely receipt of the consumer's written notice, the creditor must investigate and verify the disputed statement pursuant to 15 U.S.C. § 1666(a). See American Express Co. v. Koerner, 452 U.S. 233, 236, 101 S.Ct. 2281, 2283-84, 68 L.Ed.2d 803 (1981). Dawkins contends that Sears has been in continuous violation of § 1666(a) because it has not taken the appropriate action set forth in that section. 8 Dawkins's contention is not persuasive, however, because he did not provide Sears notice within the 60-day period; he received the first statement containing the alleged error on August 17, 1991, and he responded on November 13, 1991. Therefore, Dawkins failed to trigger Sears's obligations under § 1666, and Sears cannot be held liable for violations of that section. 1 Because Sears is not, and has never been in violation of § 1666, the statute of limitation was not tolled. 9 The statute of limitations on Dawkins's Truth-in-Lending Act claims 2 began to run sometime in late 1991 when Dawkins first learned of Sears's actions and when he initially hired an attorney. Because Dawkins did not file his complaint until May 19, 1995, the statute of limitations has long since run.