How many days does a lender have to return all monies paid in connection with a loan after the borrower rescinds?

When a borrower rescinds a loan under the Truth in Lending Act (TILA), the lender is required to return all the money paid by the borrower within a specific timeframe. The correct time period for this action is established as 20 calendar days. This regulation serves to protect borrowers by ensuring they are promptly refunded any fees or costs they incurred if they choose to rescind the loan agreement. It is crucial for borrowers to understand their rights, including the ability to rescind a loan under certain conditions, and the timeframe in which they can expect to be reimbursed, which in this case is 20 days from the date of rescission. This helps maintain transparency and fairness in lending practices.