What is the threshold for the right of rescission in 2023?

The right of rescission allows consumers to cancel certain types of credit transactions, particularly when they involve a person's primary residence. This right is outlined in the Truth in Lending Act (TILA) and Regulation Z. As of 2023, the threshold for the right of rescission is indeed set at $66,400. This figure reflects adjustments made to accommodate inflation and is pertinent to personal loans, home equity lines of credit, and other types of secured loans.

It is essential for consumers to be aware of this threshold, as it influences their ability to rescind a transaction after the closing of a loan or credit agreement. The amount stipulated in Regulation Z is designed to protect consumers from potentially high-cost loans and allows them a reconsideration window should they feel that the terms of the credit they have entered into are unfavorable or misleading. Understanding this threshold is crucial for consumers and professionals in lending, as it directly impacts their rights under the law.