Right of rescission for open-end credit
So, your credit union just opened up a HELOC for a member and now they want to rescind. What happened to no takebacks? Well, under Regulation Z a consumer has the right to rescind a HELOC. So, what is this right to rescind and what requirements does your credit union have to meet under Regulation Z?
Regulation Z, section 1026.15(a) provides a right to rescind an open-end credit plan where the consumer grants a security interest in their “principal” dwelling. Section 1026.15 grants the consumer the right to rescind under the following occurrences:
- Opening a plan;
- Each extension of credit;
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