## Facts

- Larry and Cheryle Jesinoski refinanced their Minnesota home on February 23, 2007, borrowing $611,000 from Countrywide Home Loans, Inc., secured by their principal dwelling.
- They received TILA disclosures and a notice of the right to cancel at closing but did not rescind within the initial three-business-day period.
- The borrowers later asserted they did not receive the required number of copies of the disclosures and rescission notice, which they claimed extended their rescission period.
- On February 23, 2010—exactly three years after consummation—they mailed Countrywide and its successor a written notice purporting to rescind the loan.
- The lender rejected the rescission by letter on March 12, 2010.
- On February 24, 2011, the borrowers sued in federal court seeking a declaration that the loan had been rescinded and seeking statutory damages.

## Issues

1. Whether TILA, 15 U.S.C. § 1635, requires a borrower to file a lawsuit within three years of consummation to exercise the right of rescission, or whether written notice within three years is sufficient.

## Decision

- The Supreme Court unanimously reversed the Eighth Circuit and remanded.
- The Court held that a borrower exercises the right to rescind under § 1635 by providing written notice to the creditor within the three-year period.
- The Court rejected the rule that a borrower must file suit within three years to effect rescission when the creditor disputes it.

## Legal Principles

- Under 15 U.S.C. § 1635(a), rescission is effected “by notifying the creditor” of the borrower’s intention to rescind; the statute’s text does not require filing a complaint.
- Section 1635(f) sets the outside time limit for exercising rescission, but it does not prescribe the method of exercise; the method is notice under § 1635(a).
- References to court-awarded relief elsewhere in § 1635 do not convert rescission into a remedy that occurs only through judicial action; litigation may be used to resolve disputes and obtain additional relief.
- Courts may not add extra-textual requirements (such as a three-year suit-filing requirement) that conflict with TILA’s notice-based scheme.

## Conclusion

The Court held that TILA rescission is exercised by sending written notice to the creditor within three years of consummation; a borrower need not file suit within that three-year period to effectuate rescission, though later litigation may be needed to contest validity or obtain relief.


Jesinoski v. Countrywide Home Loans, Inc., 574 U.S. 259 (2015)