01-1015 Rivera v. Grossinger Autoplex Inc.

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“After reviewing the Addendum in its entirety, we are persuaded that a reasonable person could and would have readily perceived that acceptance of the GAP coverage offered by Grossinger was voluntary. The Addendum labels its provisions and uses capitalization to draw the reader’s attention to material portions of the agreement, namely those disclosing that GAP coverage is voluntary and not a prerequisite to the obtainment of credit. We believe that the use of these tools effectively highlights the agreement’s disclosure provisions for the reasonable consumer and is therefore sufficient to satisfy the conspicuous requirement of section 226.17.

“Although Rivera is correct in pointing out that the term of coverage disclosed in the Addendum that she signed is ambiguous, we agree with the district court that such ambiguity is insufficient to support a cause of action in this case. The evidence establishes that the term of GAP coverage purchased by Rivera was equal to the term of the underlying credit transaction (i.e., her car loan). Under these circumstances, TILA does not require a creditor to disclose the term of coverage at all, let alone clearly and conspicuously. Thus, Rivera’s assertion that such ambiguity constitutes a TILA violation must fail.

“Equally unavailing is Rivera’s claim that Grossinger did not obtain from her an affirmative written request for GAP coverage. It is undisputed that Rivera signed the Addendum providing for GAP coverage at the time of purchase. Further, as discussed in detail above, the Addendum complied with all applicable TILA requirements in clearly and conspicuously disclosing that GAP coverage was voluntary and not a condition precedent to the extension of credit. As such, Rivera’s signature on and execution of the Addendum constitutes an affirmative written request for GAP coverage as a matter of law.”

Affirmed and remanded.

Appeal from the United States District Court for the Northern District of Illinois, Conlon, J., Bauer, J.