Truth in Lending: 10.7.2.1 Basic Provisions and History
Both the statute and Regulation Z make clear that, if the consumer has the extended right and chooses to exercise it, the security interest and obligation to pay charges are automatically voided—period.1132 The statute, section 1635(b), states: “When an obligor exercises his right to cancel, . . . any security interest given by the obligor . . .