Right of Rescission Calculator
Determine the precise expiration date of your 3-day right to cancel a contract under TILA.
* Calculation accounts for Sundays and Federal Legal Holidays as defined by 5 U.S.C. 6103(a).
What is the Right of Rescission?
The Right of Rescission is a provision in the Truth in Lending Act (TILA) that allows borrowers to cancel certain types of loans within three business days of closing without penalty. This "cooling-off" period is designed to protect consumers from high-pressure sales tactics and give them time to reconsider the financial implications of the contract.
The "Three-Day Rule" Logic
The rescission clock does not begin until the latest of the following three events occurs:
- The signing of the loan documents (Consummation).
- The delivery of the Truth in Lending Disclosure Statement.
- The delivery of two copies of the Notice of Right to Cancel.
What Counts as a Business Day?
For the purposes of rescission, "business days" are defined differently than standard banking days. They include Monday through Saturday. Sundays and Federal Holidays are excluded. If the third business day falls on a Sunday or holiday, the period extends to the next business day.
Calculation Example
If you sign your documents on a Thursday, and no holidays occur, the three business days would be Friday (1), Saturday (2), and Monday (3). Your right to rescind would expire at midnight on Monday. The lender would typically disburse the funds on Tuesday.
Official Federal Holidays Observed
The following holidays are excluded from the 3-day count:
- New Year's Day
- Martin Luther King, Jr. Day
- Washington's Birthday (Presidents Day)
- Memorial Day
- Juneteenth National Independence Day
- Independence Day
- Labor Day
- Columbus Day
- Veterans Day
- Thanksgiving Day
- Christmas Day