What is the federal law on time frame for rescission?

Under the Truth in Lending Act (TILA), consumers have the right to rescind certain home equity loans, refinances, and reverse mortgages within three business days from the date of the transaction or the date they receive the required disclosures, whichever is later. If the lender fails to provide the necessary disclosures, the rescission period can be extended up to three years. This law aims to protect consumers by allowing them to reconsider their decision and ensure they fully understand their obligations.