McOmie-Gray v. Bank of America

Under U.S.C. § 1635(f), regardless of whether the parties have notice or agreed otherwise, suits for rescission must be filed within three years of signing the loan agreement.

McOmie-Gray signed a loan agreement with Bank of America ("BOA"). Subsequently, McOmie-Gray sent a letter giving BOA notice of her intent to rescind the loan for failure to advise her of the final date to cancel the transaction. BOA refused rescission and negotiated with McOmie-Gray for over a year. More than three years after signing the loan agreement, McOmie-Gray filed suit in district court seeking rescission of her loan with ("BOA"). The district court dismissed the suit as untimely because it was filed after the three-year period set by 15 U.S.C. § 1635(f). McOmie-Gray appealed alleging that BOA agreed to toll the statute of limitations during negotiations. The Ninth Circuit held that rescission suits must be brought within three years from the consummation of the loan regardless of whether notice of rescission is given to the bank during that period. The Court found that § 1635(f) is a statute of repose that represents an absolute three-year ban on rescission actions regardless of whether BOA had notice of intent to rescind. The Court further held that it was irrelevant that McOmie-Gray and BOA had an agreement tolling the statute of limitations. AFFIRMED.