The Truth in Lending Act was passed to help consumers “avoid the uninformed use of credit, and to protect the consumer against inaccurate and unfair credit billing.” See 15 U.S.C. Section 1601(a). This section of the Act states the three (3) day right to rescind a loan transaction. Consumers are given the right to rescind a loan agreement or transaction until the later of midnight of the third day following the consummation of the transaction or the delivery to the consumer of the required disclosures. Rescission can be made simply by notifying the creditor of such decision in writing. If the creditor failed to make accurate disclosures as required by the Truth in Lending Act, the consumer’s three day right of rescission can be extended for up to three years!
This three day right to rescind and extension of the right of rescission for up to three years was reviewed by the Supreme Court in Larry D. Jesinoski, et ux, Petitioners v. Countrywide Home Loans, Inc., et al No. 13-384 (January 13, 2015). The Court found that the consumer’s notice was properly provided in a timely manner and rejected Countrywide’s contention that, if the lender disputed the the claim of inadequate disclosure, written notice is not enough.