Question

A consumer with a loan for closed-end credit may exercise his or her right to rescind:

A) The consumer has no right to rescind closed-end credit loans.
B) The consumer has the right to rescind closed-end credit loans within a specific time frame.
C) The consumer can only rescind closed-end credit loans if they have a cosigner.
D) The consumer can rescind closed-end credit loans at any time without restrictions.

Answer 1

A consumer with a loan for closed-end credit has the right to rescind the loan within a specific time frame.

option c is answer

Step-by-step explanation:

A consumer with a loan for closed-end credit has the right to rescind the loan within a specific time frame.

Under the Truth in Lending Act (TILA), borrowers have the right to cancel certain types of closed-end credit transactions, such as loans secured by a consumer's principal dwelling, within three business days of the transaction. This right is commonly referred to as the right of rescission.

For example, if a consumer takes out a mortgage loan to buy a house, they have three business days from the date of closing to rescind the loan if they change their mind. If they exercise their right to rescind, they must notify the lender in writing, and the lender is required to return any money paid and terminate their interest in the property. option c is answer