Legal Alert - Supreme Court Unanimously Resolves Circuit Split Regarding Notice Requirement for Truth in Lending Act Right of Rescission
by M. Lane Molen
In Jesinoski v. Countrywide Home Loans, Inc., decided January 13, 2015, the United States Supreme Court resolved a circuit split and clarified that borrowers need not file a complaint in order to invoke their right to rescind within the Truth in Lending Act’s (TILA) three-year window. In a short opinion by Justice Scalia, the Supreme Court unanimously reversed the Eighth Circuit Court of Appeals and held that borrowers exercising the right to rescind under TILA need only provide written notice to the lender within the three-year period. The decision resolves what had been a split between the Circuits: the Third, Fourth and Eleventh Circuits had held written notice is itself sufficient; meanwhile, the First, Sixth, Eighth, Ninth and Tenth Circuits had held TILA required a borrower to file suit, not just provide notice.