Opinion ID: 2820142
Heading Depth: 3
Heading Rank: 1

Heading: TILA Provisions

Text: In certain consumer credit transactions secured by the borrower’s principal dwelling, the Truth in Lending Act (TILA) provides the consumer with a right to rescind. See 15 U.S.C. § 1635(a). The creditor is required to “clearly and conspicuously disclose [that right] in accordance with regulations of the Bureau [of Consumer Financial Protection].” Id. (emphasis added).1 TILA’s implementing regulations (collectively known as Regulation Z) require creditors to “deliver two copies of the notice of the right to rescind to each consumer entitled to rescind.” 12 C.F.R. § 226.23(b)(1). Among other things, the notice must set out “[t]he date the rescission period expires,” 12 C.F.R. § 226.23(b)(1)(v), which is “midnight of the third business day following the consummation of the transaction or the delivery of the information and rescission forms required under this section [15 U.S.C. § 1635] together with a statement containing the material disclosures required under this subchapter, whichever is later,” 15 U.S.C. § 1635(a). But if “the required notice or the material disclosures are not delivered, the right to rescind . . . expire[s] three years after consummation, upon transfer of all of the consumer’s interest in the property, or upon sale of the property, whichever occurs first.” 12 C.F.R. § 226.23(a)(3). 1 Congress originally delegated regulatory authority to the Board of Governors of the Federal Reserve Board but transferred that authority to the Bureau of Consumer Financial Protection as of July 21, 2011. See 12 U.S.C. §§ 5581(b)(1), (d); 75 Fed. Reg. 57252-02, 57253 (Sept. 20, 2010). -2-