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#106958 - 08/15/03 04:32 PM Recission & Accrued Int
Shopgirl Offline
Diamond Poster
Joined: Aug 2003
Posts: 1,264
Southeast
When can you legally start accruing interest on a recission loan? In other words, don't you have to wait until the recission period is up before you start accruing interest?

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Lending Compliance
#106959 - 08/15/03 05:05 PM Re: Recission & Accrued Int
Deena Offline
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Deena
Joined: Nov 2000
Posts: 2,701
PA
You do not have to wait until the end of the rescission period to begin accruing interest. This is from the Reg Z OSC:

"3. Actions during the delay period. Section 226.15(c) does not
prevent the creditor from taking other steps during the delay, short of
beginning actual performance. Unless otherwise prohibited, such as by
state law, the creditor may, for example:
Prepare the cash advance check.
Perfect the security interest.
Accrue finance charges during the delay period ."
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#106960 - 08/15/03 05:07 PM Re: Recission & Accrued Int
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,765
Bloomington, IN
Deena is correct as for as Reg Z is concerned, but check your state law. Here in IN you cannot accrue interest during the rescission period.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#106961 - 08/15/03 05:16 PM Re: Recission & Accrued Int
Deena Offline
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Deena
Joined: Nov 2000
Posts: 2,701
PA
Thanks, Dan - I always seem to forget that little caveat.
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Opinions expressed are mine and not necessarily those of my employer.

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#106962 - 08/15/03 05:47 PM Re: Recission & Accrued Int
Shopgirl Offline
Diamond Poster
Joined: Aug 2003
Posts: 1,264
Southeast
Thanks for your advice!

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#106963 - 08/15/03 08:57 PM Re: Recission & Accrued Int
Richard Insley Offline
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Richard Insley
Joined: Oct 2000
Posts: 10,056
Toano, VA
"Can I do it..." questions almost always have a "check state law" answer. Congress has generally taken a hands-off approach to restricting business practices, leaving this option to the state assemblies.
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