Consumer Protection – TILA

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U.S. Supreme Court

Civil

Consumer Protection – TILA

A borrower exercising his right to rescind under the Truth in Lending Act need only provide written notice to his lender within the 3-year period, not file suit within that period.

Section 1635(a)’s unequivocal terms—a borrower “shall have the right to rescind . . . by notifying the creditor . . . of his intention to do so” (emphasis added)—leave no doubt that rescission is effected when the borrower notifies the creditor of his intention to rescind. This conclusion is not altered by §1635(f), which states when the right to rescind must be exercised, but says nothing about how that right is exercised. Nor does §1635(g)—which states that “in addition to rescission the court may award relief . . . not relating to the right to rescind”—support respondents’ view that rescission is necessarily a consequence of judicial action. And the fact that the Act modified the common-law condition precedent to rescission, hardly implies that the Act thereby codified rescission in equity.

729 F. 3d 1092, reversed and remanded.

13-684 Jesinoski v. Countrywide Home Loans, Inc.

Scalia, J.

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