It Pays to Read Before You Sign Athey v. Mortgage Electronic Registration Systems, Inc. Plaintiffs sued for fraud in connection with a home equity loan, claiming they were told their loan would be a fixed rate loan. In fact, their note had a variable rate and contained the following conspicuous disclaimer in the introductory paragraph: THIS NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN MY INTEREST RATE AND MY MONTHLY PAYMENT. THIS NOTE LIMITS THE AMOUNT MY INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE I MUST PAY. The Court does not hold that the contract language will always provide a shield against a fraudulent misrepresentation, but in this case the Plaintiffs could not reasonably rely upon an oral representation that was so plainly contradicted. Posted Tue, 27 Apr 2010 13:34:47 -0500
Posted on: Thu, 01 May 2014 17:36:08 +0000
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