What consumer protection law includes the right of rescission?

The Truth in Lending Act (TILA) includes the right of rescission, which allows consumers to cancel certain types of credit transactions, particularly those involving a home equity loan or mortgage refinance. This right provides a safety net for consumers, giving them three days to reconsider the commitment they have made after signing the loan documents.

TILA's primary purpose is to ensure that consumers are given clear and accurate information about the terms and costs of borrowing, promoting transparency and enabling them to make informed financial decisions. The provision for rescission under TILA is crucial in protecting consumers from hasty decisions and potential manipulation, ensuring they have the opportunity to rethink their commitment and fully understand the consequences of the credit they have engaged in.

In contrast, the other options do not encompass the specific right of rescission that TILA provides. The Bankruptcy Act deals with financial distress and the legal processes surrounding bankruptcy filings, while the Consumer Protection Act encompasses a broader set of protections but does not specifically address the right to rescind a transaction. The Mortgage Disclosure Improvement Act focuses on improving disclosures to consumers about the mortgage process but does not grant them the right to rescind. Thus, TILA's inclusion of the right of rescission makes it the correct answer in this context.