There are circumstances that we need to use additional cash. We usually go to a bank or non-bank institution and then we take out a loan. But after some time it turns out that the costs or conditions simply stop suiting us. Is there a chance to cancel the loan? Read below.
Most of us are highly convinced that if we sign a loan agreement, there is no way to withdraw from the agreement, i.e. to withdraw from the loan. This is a misconception, because banks or loan companies and institutions must comply with the Consumer Credit Act, which imposes certain obligations on them to protect consumers. Pursuant to the provisions of the said Act, the customer may withdraw from the loan agreement within 14 days of its conclusion. And there is no need here to indicate any reason. It may simply withdraw and will not bring any legal effects. Certainly, many people happened to make wrong decisions, but they did not know their rights and exceeded the deadline that allowed them to withdraw from the wrong decision. Let’s keep this in mind. If we are not sure what we have the right to do, just ask the bank or institution from which we borrow funds.
Just make a short statement in which we will provide the necessary information. Importantly, we will not have to compose the content of the statement ourselves to resign from the loan. Each entity, whether it be a bank or a non-banking institution, should (actually have an obligation) provide a withdrawal form when signing the financing contract. The form should include information, in particular:
Such a statement of withdrawal is best sent with acknowledgment of receipt in order to have a document for evidentiary purposes, if the financing entity alleged that the statement did not arrive on time or at all.
Of course, the bank or institution that gave us the loan will ask for the refund. For this we will have to bear the cost of interest in connection with the resignation of the loan. But they will be calculated only from the day of payment to the day of repayment (i.e. the return of funds to the bank / loan company). It is best to ask the lender directly to calculate their amount so that there are no errors that will lead to a recalculation and thus increase their amount. We have a duty to repay the loan within a maximum of 30 days, but the later it gets worse, because the interest will increase and the cost we will have to bear will also increase. Fortunately, this interest is the only cost we will have to bear. The Act, which we mentioned earlier, protects consumers from charging additional costs in relation to withdrawing from a loan agreement or other financial product.
The most important issue that we should focus on is choosing the right bank and then the right financial product. If we make the right decision based on our needs and expectations from the institution from which we are planning to borrow additional funds, then there will be fewer situations in which we will be forced to resign from the loan. Therefore, remember to get a good idea of the loan offer market, ask your friends or family who have already used financing. This will definitely help us narrow down the choice of institution and we will be able to deal with the accurate determination of the needs for which we incur a commitment.
In today’s reality, we consume a lot. And for example, in a situation where we can’t afford to buy better home equipment, we can always get extra funding to make purchases in installments. And everything is fine if we are able to regularly pay the installments from the loan. However, if the decision to buy in installments was made impulsively, without thinking, and we want to withdraw, then of course we have the right to withdraw from the loan in accordance with the statutory conditions. But already in the case of resignation from installments, it may not be so easy and convenient, because no one wants to suffer losses. The store where we bought the equipment, despite the withdrawal of the installment payment procedure, may require cash payment from us. Let us remember to make a careful decision about making commitments.