True or False: Reg Z requires that lenders waive the right of rescission for "bona fide emergencies."

The assertion that Regulation Z requires lenders to waive the right of rescission for "bona fide emergencies" is false. Under Truth in Lending (Regulation Z), consumers generally have the right to rescind certain transactions, particularly those involving their principal dwelling, during a three-business-day period after the transaction closes. This right is intended to protect consumers from potentially harmful financial agreements.

While there are some exceptions to this rescission right, Regulation Z does not explicitly provide for a waiver solely based on the existence of a bona fide emergency. Therefore, lenders do not have the authority to unilaterally decide to waive this right for emergencies, ensuring that consumers retain this crucial protection in their financial transactions.

This principle is vital for maintaining consumer rights and preventing misuse that could arise if lenders could easily bypass these protections under the notion of an emergency.