Questions and Answers
In consumer lending if a customer uses his primary residence as collateral for a Home Equity Line of Credit and the purpose of the loan is for business purposes do they have the 3 days to rescind?
If the loan is for business purposes, it is not "consumer lending" and is not subject to Truth-in-Lending. If the loan is not subject to Truth-in-Lending, then it is not subject to the right to rescind, since that right comes from the Truth-in-Lending Act and Regulation Z.
(Posted: 06/08/2007)
