TILA Rescission Is Law of the Land: It Might Also Be Dead

The recent denial of certiorari by SCOTUS of a clear case that was a virtual mirror of the case presented in 2015 in Countrywide v Jesinoski, shows that the courts are  going to deny rescission rights under 15 USC §1635.

This leaves borrowers naked in the wind. There is no longer any effective enforcement mechanism for the hard fought rights of borrowers to receive real disclosure of the true nature of their loans.

I won’t say that you should not use it in your pleadings because it still is law, and it is clear and unambiguous as a unanimous court held in Jesinowski. But as of now, the refusal of the court system to apply the law is complete, including SCOTUS.

The fact that it is wrong on so many levels is irrelevant. Every society must live in a system and ours allows for bad decisions. Bad decisions are still final. My suggestions to practitioners is don’t bang your head against this wall any more.

Perhaps the way around this is a modified adaptation of the AMGAR plan in which an offer is made to pay off the entire amount demanded — provided that the new lender receives disclosure of the creditor who paid value in exchange for ownership of the debt. My opinion though is that the offer must be real — i.e. based upon actual funding.

Posted in Uncategorized |