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ARTICLE · 29 APRIL 2014

Supreme Court Docket Report - April 28, 2014

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Truth in Lending Act—Home Loans—Manner of Exercising Right of Rescission

United StatesLitigation, Mediation & Arbitration

Yesterday, the Supreme Court granted certiorari in one case of interest to the business community:

Truth in Lending Act—Home Loans—Manner of Exercising Right of Rescission

The Truth in Lending Act (TILA) provides certain borrowers an unconditional right to rescind a home loan "until midnight of the third business day following the consummation of the transaction or the delivery of the information and rescission forms" required by the TILA. 15 U.S.C. § 1635(a). The borrower exercises this right by "notifying the creditor ... of his intention to do so." Id. After the three-day period expires, the borrower may rescind the loan only if the creditor has not delivered "the information and rescission forms required under this section." Id. And in all events, the borrower's right to rescission "shall expire three years after the date of consummation of the transaction" even if the "disclosures required under [TILA] have not been delivered" to the borrower. 15 U.S.C.

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