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?

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 ."

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.

Thanks, Dan - I always seem to forget that little caveat.

Thanks for your advice!

"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.