Compliance Bulletin

Supreme Court Rules TILA Rescission Notice May be Effective Without Lawsuit
March 2, 2015

The U.S. Supreme Court ruled in Jesinoski v. Countrywide Home Loan that a consumer may exercise the rescission right under TILA by delivering to the creditor a written notice within the three year period without having to file a law suit. The federal circuit courts have been split on this issue. In this case the Jesinoskis delivered their notice exactly three years after consummation of their refinance loan. The creditor responded with a letter but did not acknowledge the validity of the rescission. One year later the borrowers filed suit seeking a declaration of rescission and damages. The case eventually reached the Supreme Court which ruled that TILA requires only a the delivery of a written notice. See CBA’s Regulatory Compliance Bulletin for more information See CBA’s Regulatory Compliance Bulletin for more information.