SCOTUSblog: Jesinoski v. Countrywide Home Loans, Inc.
Issue: The question before the Court is whether a borrower exercises his right to rescind a transaction in satisfaction of the requirements of the Truth in Lending Act, 15 U.S.C. § 1635, by “notifying the creditor” in writing within three years of the consummation of the transaction, as the Third, Fourth, and Eleventh Circuits have held, or must instead file a lawsuit within three years of the consummation of the transaction, as the First, Sixth, Eighth, Ninth, and Tenth Circuits have held.
Holding: In a unanimous decision, the Supreme Court ruled that 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 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.