Right of Rescission Under the Truth in Lending Act

The Supreme Court today, in a unanimous opinion written by Justice Scalia, ruled that the right of rescission (i.e., a unilateral right to undo a mortgage loan transaction) that is a remedy under the Truth in Lending Act may be exercised simply by writing a letter to the lender that the borrower is rescinding the transaction. This right lasts for three years from the date of the transaction and is applicable in instances where the lender failed to provide any required notice under the Truth in Lending Act.

Borrowers who believe that they potentially have a claim under TILA should act as soon as they recognize it, since the three year statute of repose is non-waivable.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s