On January 13, 2015, the United States Supreme Court held that a borrower can exercise rescission under the Truth-in-Lending Act (TILA) without filing a lawsuit. Rather, the borrower need only provide written notice of rescission to the lender. This decision, Jesinoski v. Countrywide Home Loans, Inc., No. 13-684, 574 U.S. ___ (Jan. 13, 2015), will make it easier for residential borrowers to pursue rescission claims. The case may, therefore, increase the number of rescission claims that lenders face and eliminate a defense that lenders might have otherwise been able to pursue.
TILA rescission explained
TILA is a federal law intended to assure a meaningful disclosure of credit terms so that the consumer will be able to compare the various credit terms available and avoid the uninformed use of credit. 15 U.S.C. § 1601; see also Carmichael v. The Payment Center, Inc., 336 F.3d 636, 639 (7th 2003).