Clarification Sought from Supreme Court on 3-Year TILA Rescission Window

While TILA provides that borrowers may rescind their mortgage loans within three days, that time period can extend to three years if the creditor fails to make certain disclosures. Some circuit courts have held that borrowers can exercise their right to rescind a transaction under this TILA provision by notifying the creditor within three years of consummation, while others have held that the borrower must file a lawsuit within the three years. The Supreme Court is set to hear arguments in November. [9/22/14]