Supreme Court rules on Truth in Lending Act

Supreme Court rules on Truth in Lending Act

[JURIST] The US Supreme Court [official website] ruled [opinion, PDF] Tuesday in Jesinoski v. Countrywide Home Loans, Inc. [docket], determining the requirements of the Truth in Lending Act [15 USC § 1635]. The court determined that a borrower may exercise his right to rescind by providing the lender with written notice of his intent within a three-year period. The court ruled unanimously on this issue.

The Jesinoskis refinanced their house with Countrywide Home Loans in 2007, but Countrywide failed to furnish the Jesinoskis with all the information and disclosures required by the Act. The Jesinoskis attempted to rescind their loan transaction under 15 USC § 1635(a), sparking the case at hand. The federal courts of appeals were split on whether “a borrower [may] exercise his right to rescind a transaction in satisfaction of the requirements of § 1635 by ‘notifying the creditor’ in writing within three years of the consummation of the transaction,” or “must a borrower file a lawsuit within three years of the consummation of the transaction.” The court granted certiorari [JURIST report] on this case in April.