What is the maximum duration of the right of rescission period?

The maximum duration of the right of rescission period is three days. This right applies to certain transactions, particularly in cases involving the refinancing of a home loan or the acquisition of a home with a residential mortgage. Under the Truth in Lending Act (Regulation Z), consumers are given the opportunity to cancel the transaction within this specified period if they feel it is necessary.

The three-day period begins when the consumer has completed the transaction and received all required disclosures, including information on their right to rescind. If the required disclosures are not provided or are incomplete, the right of rescission can extend to a longer timeframe, allowing individuals additional time beyond the standard three days to exercise their right to cancel the transaction. However, under normal circumstances, the maximum duration for the right to rescind is capped at three days. This ensures that consumers have a reasonable window to reconsider their commitments without experiencing undue pressure.