The banking industry won an important victory last month when a federal appeals court reversed a ruling that would have held lenders liable for Truth-in-Lending mistakes made by car dealers and other retailers.

On Aug. 6, the U.S. Court of Appeals for the Fifth Circuit in New Orleans overturned a November 1998 decision by a panel of its judges in a case against a car dealership. Last fall's decision directed the plaintiffs to sue General Motors Acceptance Corp. over alleged Truth-in-Lending violations, instead of the car dealer. The plaintiffs appealed.

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