Bettano v. Wells Fargo Bank, N.A. (In Re Bettano), 440 B.R. 13

Debtors refinanced their mortgage with Aegis Lending Corp. in 2003 and paid a $300 title search fee not disclosed as part of the finance charge under MCCCDA.
Plaintiffs claim the omitted disclosure violated MCCCDA, entitling rescission.
Letters purportedly rescinding were sent May 17, 2010; bankruptcy relief under Chapter 13 filed June 4, 2010.
Adversary proceeding was filed to enforce rescission rights.
Foreclosure proceedings had begun; plaintiff relied on extended rescission rights and potential recoupment under Massachusetts law.
Court granted defendant’s motion to dismiss under Rule 12(b)(6) for failure to allege a viable rescission claim.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether rescission is viable under MCCCDA given timing.	Bettanos rely on extended rescission under §10(i)(2).	Rescission claim time‑barred by §10(f) four‑year limit.	Rescission claim barred by four‑year limit.
Whether recoupment salvages the claim after the four‑year period.	Right of recoupment extends claims beyond four years.	Recoupment may exist but does not revive time‑barred rescission claim.	Court need not decide recoupment availability; claim fails on other grounds.
Whether a $300 understated finance charge satisfies §10(i)(2) under foreclosure timing.	Threshold reduced to $35 under foreclosure pending; $300 qualifies.	Reduced threshold only applies before the four‑year rescission period; not after.	Threshold reduction does not overcome four‑year bar; claim dismissed.

Twombly, Bell Atl. Corp. v. Comcast Corp., 550 U.S. 544 (U.S. 2007) (pleading must show plausible entitlement to relief)
Iqbal, Ashcroft v., 129 S. Ct. 1937 (U.S. 2009) (bare legal conclusions insufficient to state a claim)
McKenna v. First Horizon Home Loan Corp., 475 F.3d 418 (1st Cir. 2007) (extended rescission rights in federal TILA cases under statutory framework)