North Carolina Law Review

University of North Carolina School of Law

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Use It or Lose It: The Fourth Circuit Keeping the Right to Rescind Under TILA Out of the Courts in Gilbert v. Residential Funding LLC

March 28, 2013

91 N.C. L. Rev. Addendum 148 (2013)


This Recent Development argues that the Fourth Circuit, in Gilbert v. Residential Funding LLC, correctly held that when a borrower provides notice of rescission within the three-year limitation, the right has been exercised. The statute unambiguously requires only that the borrower provide notice of rescission, and Regulation Z-which provides interpretive guidance on TILA- explicitly states that to exercise the right of rescission, the borrower is to provide notice to the lender. Further, the Consumer Financial Protection Bureau (CFPB), the agency designated to create and revise interpretive guidelines for this statute adopts this position. Plainly put, the Gilbert court accurately interpreted Congress's intent and gave effect to the plain meaning of the statute; any contrary reading would be an unwarranted judicial gloss. 



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