Auto Loan Rescission Process

Summary

After sending a notice of rescission to your auto lender, the lender should acknowledge receipt, and you may need to return the vehicle and receive a refund of all payments made. The lender has 20 days to respond under the Federal Truth in Lending Act (TILA), but state laws may vary. If the rescission notice was sent within 3 days of signing the contract, it falls under TILA protections. The lender may pursue arbitration if they disagree with the rescission, depending on the terms of your auto loan agreement. Consult a local legal expert for personalized advice.

Full Conversation

I sent a notice of rescission to my auto lender. What happens next?
Hello **** ****, could you please specify the location where this took place? Different jurisdictions may have different laws and procedures for auto loan rescission.
I sent the letter to Tempe, AZ but i live in Smyrna DE
Hello **** ****,
After sending a notice of rescission to your auto lender, here's generally what you should expect:
- Your lender should acknowledge receipt of the rescission notice.
- You may have to return the vehicle.
- You should receive a refund of all payments made.
Please note that laws vary by state. It's advised to consult with a local legal expert.
Will the lender pursue arbitration?
The lender may decide to pursue arbitration if they disagree with the rescission. However, it largely depends on the terms of your auto loan agreement. It's advisable to review your contract or consult a local legal expert.
How long does a lender have to respond after rescission notice is given?
In accordance with the Federal Truth in Lending Act (TILA), a lender has 20 days after receiving a rescission notice to respond. However, state laws may vary, and it's advised to consult with a local legal expert in Smyrna DE.
My rescission was after 3 days
Could you clarify if you sent the rescission notice within 3 days of signing the contract? It's important as under the Federal Truth in Lending Act (TILA), you have a right to rescind certain contracts within * business days.