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: ☐ ___________%

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:

Pursuant to my rights under the Truth in Lending Act, 15 U.S.C. § 1635, and Regulation Z, 12 C.F.R. § 1026.23, I hereby exercise my right to rescind the above-referenced consumer credit transaction.

This notice is effective upon mailing/delivery to you.

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 within three business days of whichever is later

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

☐ This rescission is exercised within the extended three-year period due to the creditor's failure to provide required disclosures.

The creditor failed to provide the following required disclosures or materially violated disclosure requirements:

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 disclose the Security Interest taken in the property

Other Disclosure Violations

☐ Creditor failed to provide disclosures before consummation

☐ Creditor failed to provide disclosures in a form the consumer could keep

☐ Disclosures were not clear and conspicuous

☐ Creditor failed to identify the creditor making disclosures

☐ Other violations: _______________________________________________

II. LEGAL EFFECT OF RESCISSION

Under 15 U.S.C. § 1635(b) and 12 C.F.R. § 1026.23(d), upon my exercise of the right to rescind:

Immediate Effect

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

☐ Any security interest created as part of this transaction is void

☐ The transaction is treated as if it never occurred

Creditor's Obligations Within 20 Calendar Days

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

☐ Return all money or property given by me as earnest money, down payment, or otherwise

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

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

☐ Refund all payments made by me

☐ Not impose any finance charges after rescission

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 $☐ _______________

☐ Credit Reporting: Notify all credit reporting agencies that the account is closed and the debt is rescinded

☐ Account Closure: Close the loan account and cease all billing statements

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

Return of Proceeds (If Applicable)

☐ Upon your performance of the above obligations, I tender return of any loan proceeds received, in the amount of $☐ _______________

☐ 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:

Automatic Termination of Security Interest

☐ Under 15 U.S.C. § 1635(b), your security interest automatically becomes void, and I am entitled to retain all loan proceeds without obligation

Statutory Damages and Penalties

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

• Actual damages
• Statutory damages up to $4,000 for individual actions
• Attorney's fees and costs

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

Jesinoski v. Countrywide Home Loans, Inc. (2015)

Per the U.S. Supreme Court's decision in Jesinoski v. Countrywide Home Loans, Inc., 574 U.S. 330 (2015):

A borrower exercising his right to rescind under [TILA] need only provide written notice to his lender within the 3-year period... He need not also file suit within three years.

This written notice is sufficient to exercise rescission rights. No lawsuit is required to effectuate rescission.

Three-Year Absolute Limit

Under 15 U.S.C. § 1635(f), the right of rescission expires three years after the date of consummation of the transaction or upon sale of the property, whichever occurs first.

• 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

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 refinance with same creditor (no new money advanced)

☐ Verify timing:

• ☐ Within 3 business days of later of consummation or delivery of disclosures, OR
• ☐ Within 3 years if disclosures were deficient

☐ All borrowers have signed (all obligors must rescind)

☐ 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

☐ Refinance with same creditor where no new money advanced

☐ State agency loans for first-time homebuyers

☐ 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

Key Case Law:

• Jesinoski v. Countrywide Home Loans, Inc., 574 U.S. 330 (2015) - Written notice sufficient; no suit required
• Beach v. Ocwen Fed. Bank, 523 U.S. 410 (1998) - Three-year period is statute of repose

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

• Annual percentage rate
• Finance charge
• Amount financed
• Total of payments
• Payment schedule
• Security interest disclosures

This template is provided for informational purposes and does not constitute legal advice. Rescission rights under TILA are complex and fact-specific. Consult with a qualified attorney before exercising rescission rights.