Jesinoski v. Countrywide Home Loans, Inc.
The Truth in Lending Act (TILA), 15 U.S.C. § 1635, gives borrowers the right to rescind certain transactions “by notifying the creditor.” If a creditor fails to provide the required forms and disclosures by closing, TILA provides that the right to rescind expires three years after the consummation of the transaction or upon the sale of the property, whichever occurs first. The government’s amicus brief argues that a consumer can exercise the right to rescind within three years as provided by TILA by notifying the creditor, and need not also file a lawsuit within the three-year period in order to rescind a transaction.