West Virginia passed a bill permitting the collection of interest on a loan during the rescission period (when a right of rescission applies under the Federal Truth-in-Lending Act). Under current law, a lender is prohibited from charging or receiving any interest on a loan until loan closing and disbursement of loan funds has occurred. Under the bill, if a right of rescission applies, the lender may charge and receive interest during the rescission period. However, a lender may not charge interest during the rescission period if the loan will pay off in full a prior loan made by the same lender or in the event the borrower rescinds the loan. The bill becomes effective June 13, 2016.
See West Virginia Legislature website for the full text of the Statutes:
http://www.legis.state.wv.us/Bill_Text_HTML/2016_SESSIONS/RS/bills/SB468%20SUB1%20ENR.pdf
