Pub. 6 2015 Issue 1

www.wvbankers.org 16 West Virginia Banker TILA takes a Turn: Recent TILA Decisions Expand Rescission Rights By Sandra Murphy, Bowles Rice LLP C ongress passed TILA to help consum- er borrowers avoid the uninformed use of credit, and to protect them from inaccurate and unfair credit billing. TILA gives consumer borrowers the un- conditional right to rescind loans secured by their principal dwellings anytime with- in the three business day period following loan consummation or the delivery of required disclosures, whichever is later. Importantly, however, if the disclosures required by TILA are not provided, bor- rowers may still rescind their loans until three years after loan consummation or the property is sold, whichever comes first. Jesinoski v. Countrywide Home Loans, Inc. On January 13, 2015, the United States Supreme Court decided that the Truth in Lending Act (“TILA”) allows consumers to rescind loans secured by their principal dwellings anytime within three years fol- lowing loan consummation by providing their lenders with written notice of rescis- sion, if the borrowers were never given the disclosures required by TILA. See Jesinoski v. Countrywide Home Loans, Inc., No. 13-684 (U.S. Sup. Ct. 2015). In Jesinoski, Countrywide Home Loans, Inc. argued that the extended rescission remedy can only be exercised through the filing of a lawsuit within three years Two recent federal cases construing the right to rescission under the Truth in Lending Act (TILA) have expanded the way a borrower may give notice of rescission and broadened the class of individuals who may assert a rescission claim.