What to do if after the conclusion of the loan agreement, we want to cancel because it does not meet our expectations or other circumstances have occurred. Is it possible to withdraw from the loan agreement, if so, on what terms?
We can withdraw from the loan agreement as long as 14 days have not passed since the date of signing the document. However, if we decide to take this step, we should complete some formalities and return the money received to the lender. Withdrawal from the loan agreement is guaranteed in accordance with the provisions of the Consumer Credit Act, which also applies to non-bank loans. In the event that 14 days have not passed since the day of signing the contract, we have the right to withdraw from the contract without giving a reason. It is also worth noting that then the cancellation of the loan does not involve any additional fees.
How can we withdraw from the loan agreement?
Withdrawal from the loan agreement is not a difficult undertaking. It is necessary to complete the withdrawal form. As a rule, it is available on the website of the loan company or is an attachment to the contract. It should be remembered that our signature should appear on the application. Otherwise the document will be considered invalid.
The next step is to provide the form to the loan company. You can leave it in person at the lender’s office or send it by post. If you leave the application at a stationary date, please ask a company employee to confirm receipt of the document in writing. Sending the form by post requires sending it by registered mail with the option of acknowledgment of receipt. In this way we will have confirmation that we have fulfilled our obligations properly and the lender will not be able to refuse us to withdraw from the loan agreement.
When should the borrowed money be returned when we decide to withdraw from the contract?
The loan that we have borrowed and we want to withdraw from it must be returned to the lender. Usually, borrowers have a maximum of 30 days to return the money from the day the form is submitted. In the case of a free payday pay, you must give back exactly what you borrowed. The situation is slightly different in the case of normally interest-bearing loans. The lender should be paid back the loan value plus interest for the period in which we could freely use the money borrowed. To calculate the amount due, it’s best to contact the lender’s Customer Service Desk. The representative of the loan company is required to provide the current state of the debt to be repaid. Thanks to this, we will certainly not mistake the calculation, while freeing ourselves from unwanted loans.
Termination of the loan agreement by the loan company
Withdrawal from the loan agreement is completely different from termination. Withdrawal is the borrower’s right. Does not require a reason. We speak of termination of the contract when one of the parties fails to fulfill its obligations, which are contained in the document. Jenny law protects both borrowers and lenders. Therefore, the loan company may terminate the loan agreement in certain situations. Borrowers who repay their liabilities on time should not be afraid of anything.
Termination of the loan agreement usually occurs when the borrower defaults, i.e. he stops paying the installments on time. The lender may decide to terminate the loan agreement when it turns out that the debtor has ceased to be solvent or the collateral for the loan due to the borrower has significantly decreased. In such cases, the loan company may require the client to pay the entire debt immediately.