The opinion of the court was delivered by: WEINER
Plaintiff, Monica Dixon Gill, brings this suit against defendant, Mid-Penn Consumer Discount Company, ("Mid-Penn") alleging violations of the Truth In Lending Act, 15 U.S.C. § 1601 et seq. (TILA). Presently before the court are the parties' cross-motions for summary judgment, the parties having entered into a joint stipulation as to facts herein. For the reasons which follow, we grant the motion of the plaintiff and deny the motion of the defendant.
The stipulated facts are as follows:
On or about October 16, 1984, plaintiff borrowed an initial sum of $ 757.60 from defendant at an annual percentage rate of 23.85% and gave defendant a security interest in the form of a mortgage in the amount of $ 960.00 on her home at 1644 N. Edgewood Street, Philadelphia, Pennsylvania.
On or about April 15, 1985, plaintiff and defendant refinanced the transaction of October 16, 1984. In this second transaction, the balance of the prior loan was paid and plaintiff received cash in the amount of $ 710.80. Plaintiff gave defendant a second security interest in the form of a mortgage in the amount of $ 1,980.00 on her home. At the time of the refinancing, plaintiff was current in her payments to defendant and, had paid defendant $ 40.00 over the amounts required under the contract for the first loan.
On or about May 19, 1986, plaintiff and defendant refinanced the transaction of August 27, 1985. In this fourth transaction, the balance on the loan of August 27, 1985 was paid and plaintiff received cash in the amount of $ 501.07. Plaintiff gave defendant a fourth security interest in the form of a mortgage in the amount of $ 3,384.00 on her home. At the time of the refinancing, plaintiff was current in the payments owed to defendant on the August 27, 1985 loan.
For each of these four transactions plaintiff was provided with Truth In Lending Disclosure Statements and with Notices of Right to Cancel.
The mortgage resulting from the August 27, 1985 transaction was satisfied of record in May, 1986. The mortgages resulting from the October 16, 1984 and April 15, 1985 transactions have never been satisfied. Plaintiff has demanded that defendant satisfy the mortgage of May 19, 1986.
In the four transactions plaintiff received total consideration in the amount of $ 2,468.71. Plaintiff has paid defendant a total of $ 1,520.00. On March 17, 1987, plaintiff advised defendant that she was rescinding all four transactions pursuant to TILA. On April 13, 1987 defendant notified plaintiff that it would not agree to rescind any of the transactions.
The pertinent law in this case is the federal Truth In Lending Act, particularly 15 U.S.C. §§ 1635(a) and (b) which provide as follows:
Right of Rescission as to Certain Transactions
(a) Except as otherwise provided in this section, in the case of any consumer credit transaction (including opening or increasing the credit limit for an open end credit plan) in which a security interest, including any such interest arising by operation of law, is or will be retained or acquired in any property which is used as the principal dwelling of the person to whom the credit is extended, the obligor shall have the right to rescind the transaction until midnight of the third business day following the consummation of the transaction or the delivery of the information and rescission forms required under this section together with a statement containing the material disclosures required under this title, whichever is later, by notifying the creditor, in accordance with regulations of the Board, of his intention to do so. The creditor shall clearly and conspicuously disclose, in accordance with regulations of the Board, to any obligor in a transaction subject to this section the rights of the obligor under this section. The creditor shall also provide, in accordance with regulations of the Board, appropriate forms for the obligor to exercise his right to rescind any transaction subject to this section.
(b) When an obligor exercises his right to rescind under subsection (a), he is not liable for any finance or other charge, and any security interest given by the obligor, including any such interest arising by operation of law, becomes void upon such a rescission. Within 20 days after receipt of a notice of rescission, the creditor shall return to the obligor any money or property given as earnest money, down payment, or otherwise, and shall take any action necessary or appropriate to reflect the termination of any security interest created under the transaction. If the creditor has delivered any property to the obligor, the obligor may retain possession of it. Upon the performance of the creditor's obligations under this section, the obligor shall tender the property to the creditor, except that if return of the property in kind would be impracticable or inequitable, the obligor shall tender its reasonable value. Tender shall be made at the location of the property or at the residence of the obligor, at the option of the obligor. If the creditor does not take ...