How long does a creditor have to return any money collected related to a rescinded loan?

In the context of mortgage lending, when a borrower rescinds a loan under the Truth in Lending Act (TILA), the creditor is required to act promptly to return any money collected from the borrower. The correct timeframe for returning funds in relation to a rescinded loan is 20 calendar days. Within this period, the creditor must not only refund any payments made but also cancel any security interests that may have been taken in the borrower's property.

This regulation ensures that borrowers are not left waiting unnecessarily long for the return of funds after deciding to rescind a loan. It provides a clear and concise timeframe, promoting fairness and protection for consumers in the lending process. The other durations listed do not align with the stipulated guidelines under the Act, thus highlighting the importance of being familiar with these specific timelines in mortgage lending practices.