In a credit transaction in which a security interest is or will be retained or acquired in a consumer's principal dwelling, each consumer whose ownership is or will be subject to the security interest has the right to rescind the transaction. Lenders are required to deliver two copies of the notice of the right to rescind and one copy of the disclosure statement to each consumer entitled to rescind. The notice must be on a separate document that identifies the rescission period on the transaction and must clearly and conspicuously:
" disclose the retention or acquisition of a security interest in the consumer's principal dwelling;
" the consumer's right to rescind the transaction; and
" how the consumer may exercise the right to rescind with a form for that purpose.
The Wisconsin Right to rescind when security interest in a consumer's principal dwelling is involved — Rescission is a legal provision that grants consumers in Wisconsin the right to cancel or rescind certain transactions that involve a security interest in their primary residence. This right offers protection to consumers against potentially unfair or deceptive lending practices, ensuring they have the opportunity to review and reconsider such agreements. Under this provision, consumers have a specific time frame within which they can exercise their right to rescind a transaction. The time period typically starts from the date the transaction is finalized or when the consumer receives certain disclosures, such as the Truth in Lending Act (TILL) disclosures or the notice of the right to cancel. The duration for exercising this right is usually three business days, excluding Sundays and federal holidays, unless otherwise specified. The Wisconsin Right to rescind when security interest in a consumer's principal dwelling is involved — Rescission applies to various types of transactions, including: 1. Mortgage Loans: When a consumer obtains a mortgage loan from a lender, they have the right to rescind the transaction within the specified time frame if the loan is secured by their principal dwelling. 2. Home Equity Loans or Lines of Credit: If a consumer secures a home equity loan or line of credit using their principal dwelling as collateral, they are entitled to exercise their right to rescind within the designated period. 3. Refinancing: Consumers who refinance their existing mortgage loan, where their principal dwelling is involved, also have the right to rescind the refinancing transaction. It is essential for consumers to act promptly and provide written notice to the lender or creditor if they wish to exercise their right to rescind. This notice should clearly express the consumer's intent to cancel the transaction, ideally by sending a written letter via certified mail or another verifiable method. Upon receipt of the notice of rescission, the lender or creditor must promptly refund any fees or payments made by the consumer and terminate the security interest held in the consumer's principal dwelling. Failure to comply with the consumer's right to rescind can result in severe penalties and potential legal action. In summary, the Wisconsin Right to rescind when security interest in a consumer's principal dwelling is involved — Rescission empowers consumers to protect themselves against potentially unfavorable transactions that involve their primary residence. By exercising their right to rescind within the specified time frame, consumers can reconsider, cancel, and potentially avoid financial consequences associated with certain secured loans tied to their principal dwelling.
