Truth in Lending: 12.2.3.4.3 Does a rescission claim extend the limitations period for underlying disclosure violations?
Section 1635(g) provides: “In any action in which it is determined that a creditor has violated this section, in addition to rescission the court may award relief under section 1640 of this title for violations of this chapter not relating to the right to rescind.” One decision suggests that this provision means that, if a claim for rescission is timely because it was exercised within the three-year period set by section 1635(f), then the consumer can also seek damages for disclosure violations even if they would normally be barred by the one-year statute of limitations.