Jesinoski v. Countrywide Home Loans, Inc.

Exactly three years after borrowing money to refinance their home mortgage, the Jesinoskis sent the lender a letter purporting to rescind the transaction. The lender replied, refusing to acknowledge the rescission’s validity. One year and one day later, the Jesinoskis filed suit, seeking a declaration of rescission and damages. The district court entered judgment on the pleadings, concluding that a borrower can exercise the Truth in Lending Act’s right to rescind, 15 U. S. C.1635(a), (f), only by filing a lawsuit within three years of the date the loan was consummated. The Eighth Circuit affirmed. The unanimous Supreme Court reversed. A borrower exercising his right to rescind under the Act need only provide written notice to his lender within the 3-year period, not file suit within that period. Section 1635(a)’s language: a borrower “shall have the right to rescind . . . by notifying the creditor . . . of his intention to do so,” indicates that rescission is effected when the borrower notifies the creditor of his intention. The statute says nothing about how that right is exercised and does not state that rescission is necessarily a consequence of judicial action. View "Jesinoski v. Countrywide Home Loans, Inc." on Justia Law