Eric T. Schneiderman ()
New York is leading a coalition of 25 states urging the U.S. Supreme Court to uphold the rescission right of consumers under the Truth in Lending Act (TILA) to back away from a loan simply by giving written notice to the creditor.
The high court in late April agreed to hear Jesinoski v. Countrywide Home Loans, 13-684, an Eighth Circuit case raising a question of whether the TILA rescission provision can be triggered by notice to the lender or only through a lawsuit.
New York Attorney General Eric Schneiderman has taken the lead in urging the court to reverse the Eighth Circuit and permit a Minnesota couple to rescind the loan.
In Jesinoski, the couple refinanced their home by borrowing $611,000 from Countywide Home Loans. Three years later, the Jesinoski’s attempted to rescind the loan, alleging that they did not receive appropriate documentation from the lender. They filed suit only after their request to rescind was denied.
Countywide successfully argued that in order to rescind under the TILA, a consumer must file suit within three years of taking out a home loan.
In an amicus brief joined by two dozen states, New York argues that written notice alone is sufficient.