U.S. Supremes: Filing A Lawsuit Not Necessary To Rescind Consumer Loan Under Truth In Lending Act; Simply Notifying Creditor In Accordance With Regulations Is Sufficient
- Resolving a split among the federal courts of appeals in favor of consumers, the Supreme Court held today in Jesinoski v. Countrywide Home Loans, Inc., that a consumer may exercise the right to rescind a loan under the federal Truth in Lending Act simply by notifying the creditor rather than (as the creditor contended and as several federal courts had held) by filing a lawsuit.
The unanimous opinion by Justice Scalia relied on the plain language of the statute, which provides that a borrower “shall have the right to rescind . . . by notifying the creditor, in accordance with regulations of the Board, of his intention to do so.” Obviously, it's much easier to provide notice than to file a lawsuit, so this is a clear win for consumers (an increasingly rare event at the Supreme Court these days).
For the ruling see Jesinoski v. Countrywide Home Loans, Inc., No. 13-684 (January 13, 2015).