A borrower exercises their right of rescission on a refinance loan by calling the lender on the last day of the rescission period at 8 PM. The lender claims the rescission is invalid because it wasn't in writing. Is the lender correct?
Correct Answer
B) No, oral rescission is valid if made within the time period
Under TILA Section 125(a), a borrower may exercise the right to rescind by notifying the creditor of the rescission by mail, telegram, or other means of written communication. However, courts have generally held that oral notice is sufficient if given within the rescission period, though written notice is preferred for documentation purposes.
Why This Is the Correct Answer
Under TILA Section 125(a), a borrower may exercise the right to rescind by notifying the creditor of the rescission by mail, telegram, or other means of written communication. However, courts have generally held that oral notice is sufficient if given within the rescission period, though written notice is preferred for documentation purposes.
More Federal Laws Questions
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