TILA Rescission Notice

NOTICE OF RESCISSION

Pursuant to the Truth in Lending Act, 15 U.S.C. § 1635

BORROWER/OBLIGOR INFORMATION

Name(s): ☐ _______________________________________________

Co-Borrower (if applicable): ☐ _______________________________________________

Property Address: ☐ _______________________________________________

City, State, ZIP: ☐ _______________________________________________

Mailing Address (if different): ☐ _______________________________________________

Phone: ☐ _______________________________________________

Email: ☐ _______________________________________________

Date: ☐ _______________________________________________

CREDITOR/LENDER INFORMATION

Creditor Name: ☐ _______________________________________________

Servicer Name (if different): ☐ _______________________________________________

Address: ☐ _______________________________________________

City, State, ZIP: ☐ _______________________________________________

Loan Number: ☐ _______________________________________________

LOAN INFORMATION

Type of Transaction:

☐ Home equity loan

☐ Home equity line of credit (HELOC)

☐ Refinance transaction

☐ Home improvement loan

☐ Other consumer credit transaction secured by principal dwelling: _______________

Original Loan Amount: $☐ _______________

Current Principal Balance: $☐ _______________

Loan Closing Date: ☐ _______________

Interest Rate: ☐ ___________%

ELIGIBILITY SCREEN — REVIEW BEFORE SENDING

This notice is intended only for a consumer credit transaction in which a security interest is or will be retained or acquired in the consumer's principal dwelling. Do not use it without legal review if any exemption may apply.

The federal right generally does not apply to:

• A residential mortgage transaction financing the acquisition or initial construction of the consumer's principal dwelling
• A same-creditor refinancing or consolidation already secured by the principal dwelling, except to the extent of qualifying new money advanced
• A transaction in which a state agency is the creditor
• A later advance under a preexisting open-end plan when the security interest was already retained or acquired and the advance is within the previously established credit limit
• A noninitial advance in a series treated as one transaction under 12 C.F.R. § 1026.17(c)(6), when the required notice and material disclosures were given
• A renewal of optional insurance premiums that is not treated as a refinancing

Transactions secured only by a vacation home, second home, or other property that is not the consumer's principal dwelling are outside this right.

FORMAL NOTICE OF RESCISSION

SENT VIA:

☐ Certified Mail, Return Receipt Requested - Tracking #: _______________

☐ Overnight Delivery - Tracking #: _______________

☐ Hand Delivery with Written Acknowledgment

☐ Facsimile with Confirmation - Fax #: _______________

Date Sent: ☐ _______________

Dear Sir or Madam:

Based on the facts identified below, and pursuant to the Truth in Lending Act, 15 U.S.C. § 1635, and Regulation Z, 12 C.F.R. § 1026.23, I hereby notify you that I exercise any timely right I have to rescind the above-referenced consumer credit transaction.

For Regulation Z purposes, written notice is considered given when mailed or filed for telegraphic transmission, or, if sent by another means, when delivered to the creditor's designated place of business.

I. BASIS FOR RESCISSION

A. THREE-DAY RIGHT OF RESCISSION (15 U.S.C. § 1635(a))

☐ This rescission is exercised within the initial three-business-day rescission period.

• Transaction consummated on: ☐ _______________
• Required disclosures delivered on: ☐ _______________
• This notice is sent on: ☐ _______________
• This is no later than midnight of the third business day after the latest of consummation, delivery of the rescission notice, or delivery of all material disclosures

For this rescission period, a business day is every calendar day except Sundays and the federal legal public holidays listed in 5 U.S.C. § 6103(a).

B. EXTENDED RIGHT OF RESCISSION (15 U.S.C. § 1635(f))

☐ This rescission is exercised before the applicable outside deadline because the required rescission notice or one or more defined material disclosures were not delivered.

The creditor failed to provide the following rescission notice or material disclosure:

Failure to Deliver Rescission Notice

☐ Creditor failed to deliver the required notice of right to rescind

☐ Creditor failed to deliver two copies of the rescission notice as required

☐ The rescission notice was materially deficient because: _______________

Failure to Deliver Material Disclosures

☐ Creditor failed to accurately disclose the Annual Percentage Rate (APR)

• Disclosed APR: ___________%
• Correct APR: ___________%

☐ Creditor failed to accurately disclose the Finance Charge

• Disclosed Finance Charge: $_______________
• Correct Finance Charge: $_______________

☐ Creditor failed to accurately disclose the Amount Financed

• Disclosed Amount: $_______________
• Correct Amount: $_______________

☐ Creditor failed to accurately disclose the Total of Payments

• Disclosed Total: $_______________
• Correct Total: $_______________

☐ Creditor failed to accurately disclose the Payment Schedule

☐ Creditor failed to provide an applicable disclosure or limitation required by 12 C.F.R. § 1026.32(c) or (d)

☐ Creditor failed to provide an applicable disclosure required by 12 C.F.R. § 1026.43(g)

The term “material disclosures” for this extended period is limited to the items listed above. Accuracy tolerances and special foreclosure rules may affect whether a disclosure error supports rescission.

Other Issues for Attorney Review

The following issues may be relevant to other TILA claims or to whether the required notice was properly delivered, but they do not automatically extend the rescission period unless they involve the required rescission notice or a defined material disclosure:

☐ Other disclosure or transaction issue: _______________________________________________

II. LEGAL EFFECT OF RESCISSION

If this transaction is subject to a valid and timely rescission, 15 U.S.C. § 1635(b) and 12 C.F.R. § 1026.23(d) provide the following effects and procedures. A court may modify the statutory sequence.

Immediate Effect

☐ I am not liable for any finance charge or other charges imposed in connection with this transaction

☐ The security interest giving rise to the rescission right becomes void

Creditor's Obligations Within 20 Calendar Days

Within twenty (20) calendar days after receipt of this notice, the creditor must:

☐ Return any money or property given to anyone in connection with the transaction

☐ Take any action necessary to reflect the termination of any security interest created

☐ Release the mortgage/deed of trust lien on the property

☐ Refund payments and charges covered by the rescission remedy

Consumer's Tender After Creditor Performance

After the creditor performs the obligations above, the consumer must tender the money or property received, or its reasonable value if return in kind would be impracticable or inequitable. Tender of money must be made at the creditor's designated place of business; other property may be tendered at the property's location or the consumer's residence, at the consumer's option. A court may modify these procedures.

Only if the creditor fails to take possession within 20 calendar days after the consumer's tender may the consumer keep the tendered money or property without further obligation under 12 C.F.R. § 1026.23(d)(3).

III. DEMANDED ACTIONS

Within 20 Days of Receipt of This Notice

I demand that you take the following actions within 20 calendar days:

☐ Lien Release: Record a release, satisfaction, or reconveyance of the mortgage/deed of trust in the public records of ☐ _______________ County, ☐ _______________ [State]

☐ Refund of Payments: Return all payments I have made, totaling approximately $☐ _______________

☐ Refund of Fees: Return all closing costs and fees paid, totaling approximately $☐ _______________

☐ Written Confirmation: Provide written confirmation of rescission and all actions taken

Additional Requested Actions — Not Automatic § 1635 Remedies

These requests may depend on the account status, other law, or an agreement with the creditor:

☐ Credit Reporting: Correct any inaccurate credit reporting resulting from the transaction or rescission

☐ Account Administration: Explain in writing how the account will be administered after rescission and tender

Return of Proceeds (If Applicable)

☐ Upon your performance of the obligations required by 15 U.S.C. § 1635(b) and 12 C.F.R. § 1026.23(d)(2), I will tender the money or property received, or the appropriate reasonable value, subject to any court order modifying the procedure

☐ I am prepared to tender upon your performance of your obligations

☐ I dispute the amount of proceeds actually received and request an accounting

IV. AMOUNTS TO BE RETURNED BY CREDITOR

Based on my records, the creditor must return:

V. CONSEQUENCES OF NON-COMPLIANCE

If you fail to comply with this rescission notice within 20 calendar days, the following consequences may apply:

Enforcement and Tender

☐ I may seek enforcement of the rescission remedy and an order addressing termination of the security interest and the parties' respective return-and-tender obligations

A creditor's failure to perform within 20 calendar days does not, by itself, allow the consumer to keep all loan proceeds. The without-further-obligation provision applies only if the creditor does not take possession within 20 calendar days after the consumer tenders the money or property, subject to any court-ordered modification.

Statutory Damages and Penalties

☐ Under 15 U.S.C. § 1640, I may pursue:

• Actual damages
• Statutory damages when authorized for the transaction and violation
• For an individual action involving closed-end credit secured by real property or a dwelling, statutory damages of not less than $400 and not greater than $4,000
• Costs and a reasonable attorney's fee in a successful enforcement action or an action determining a right of rescission

Other transaction types have different statutory-damages measures and limits. Defenses, disclosure tolerances, assignee rules, and filing deadlines may apply.

Litigation

☐ If you fail to honor this rescission, I will seek judicial enforcement, including:

• Declaratory relief confirming the rescission
• Quiet title action
• Damages under TILA
• State law claims

VI. IMPORTANT LEGAL NOTICES

Written Notice and Possible Enforcement

Regulation Z directs a consumer to exercise the right by notifying the creditor through mail, telegram, or another form of written communication within the applicable period. Sending notice does not guarantee that the creditor will agree the transaction is eligible, the notice is timely, or a qualifying disclosure defect occurred. Judicial enforcement may be necessary if the creditor disputes the rescission or the parties cannot resolve tender and other consequences.

Three-Year Absolute Limit

Under 15 U.S.C. § 1635(f) and 12 C.F.R. § 1026.23(a)(3), the extended right generally expires at the earliest of three years after consummation, transfer of all of the consumer's interest in the property, or sale of the property. A limited statutory exception applies to certain agency enforcement proceedings.

• Transaction consummation date: ☐ _______________
• Three-year deadline: ☐ _______________
• This notice is timely sent on: ☐ _______________

VII. RESERVATION OF RIGHTS

By sending this rescission notice, I do not waive any rights, claims, or defenses available to me under federal or state law, including but not limited to:

☐ Claims under the Truth in Lending Act (15 U.S.C. § 1601 et seq.)

☐ Claims under the Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.)

☐ Claims under the Home Ownership and Equity Protection Act

☐ State consumer protection claims

☐ Fraud and misrepresentation claims

☐ Breach of contract claims

☐ All other legal and equitable remedies

VIII. REQUEST FOR ACKNOWLEDGMENT

As a sender-selected request—not a statutory acknowledgment deadline—please acknowledge receipt of this Notice of Rescission in writing within 10 days of receipt by:

☐ Confirming the date of receipt

☐ Confirming your intent to comply with rescission obligations

☐ Providing a timeline for completion of required actions

☐ Identifying the person responsible for handling this rescission

Send acknowledgment to:

Name: ☐ _______________________________________________

Address: ☐ _______________________________________________

Email: ☐ _______________________________________________

This Notice of Rescission is sent without prejudice to any other rights or remedies available to me under law.

Sincerely,

_________________________________________________
[Signature of Borrower]

_________________________________________________
[Printed Name]

_________________________________________________
[Date]

_________________________________________________
[Signature of Co-Borrower, if applicable]

_________________________________________________
[Printed Name]

_________________________________________________
[Date]

SENDER'S CHECKLIST

Before Sending:

☐ Verify the transaction is eligible for TILA rescission:

• ☐ Consumer credit transaction
• ☐ Secured by principal dwelling
• ☐ NOT a residential mortgage to purchase/construct dwelling
• ☐ NOT a same-creditor refinance, except to the extent the rescission right may apply to qualifying new money advanced

☐ Verify timing:

• ☐ By midnight of the third business day after the latest of consummation, delivery of the rescission notice, or delivery of all material disclosures, OR
• ☐ Before the earliest applicable extended-period deadline, based on failure to deliver the required rescission notice or a defined material disclosure

☐ Every consumer whose ownership interest is subject to the security interest has been identified; one entitled consumer's exercise is effective as to all consumers

☐ Sent via trackable method with proof of delivery

☐ Copy retained for records

After Sending:

☐ Save tracking receipt and delivery confirmation

☐ Calendar 20-day deadline for creditor compliance

☐ Monitor for creditor response

☐ Document all communications

☐ Consult attorney if creditor fails to comply

Properties NOT Eligible for Rescission:

☐ Purchase money mortgages for primary residence

☐ Same-creditor refinance where no qualifying new money was advanced

☐ Transactions in which a state agency is the creditor

☐ Later advances or optional-insurance renewals exempted by 12 C.F.R. § 1026.23(f)(4)-(5)

☐ Transactions on vacation or second homes (generally)

LEGAL REFERENCES

15 U.S.C. § 1635 - Right of Rescission

• 3-day initial rescission period
• 3-year extended period for disclosure failures
• 20-day creditor compliance period

12 C.F.R. § 1026.23 (Regulation Z) - Right of rescission procedures

12 C.F.R. § 1026.2(a)(6) and (24) - Rescission business-day rule and residential-mortgage-transaction definition

Material Disclosures (12 C.F.R. § 1026.23(a)(3)):

• Annual percentage rate
• Finance charge
• Amount financed
• Total of payments
• Payment schedule
• Disclosures and limitations in 12 C.F.R. § 1026.32(c) and (d)
• Disclosures in 12 C.F.R. § 1026.43(g)

Official sources:

• https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section1635&num=0&edition=prelim
• https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section1640&num=0&edition=prelim
• https://www.consumerfinance.gov/rules-policy/regulations/1026/23/
• https://www.consumerfinance.gov/rules-policy/regulations/1026/2/

This template is provided for informational purposes only and does not constitute legal advice. TILA rescission eligibility, timing, disclosure tolerances, tender, and enforcement are complex and fact-specific. Have a qualified consumer-law attorney review the transaction and customize this notice before use.