How to withdraw from a loan agreement?
In a situation where we urgently need additional money, we often do not pay enough attention to the details of the contract. We want to get financial security as soon as possible to pay for sudden expenses. Then it turns out that other companies offer much better conditions, and we hurriedly signing the contract and we condemned ourselves to losses. Fortunately, we still have the opportunity to rectify this situation. How to withdraw from the loan agreement?
Consumer rights in the Credit Act
By signing a contract with a bank or registered non-bank company, the customer is subject to the Consumer Credit Act. In connection with the regulations, the borrower always has the right to withdraw from the contract within 14 days. We also do not have to state the reason why we decided to withdraw from the contract. Consumer law applies to banks, Spółdzielcza Kasa Oszczędnościowo-Kredytowa, as well as institutions that profit from the business of granting loans and credits. Therefore, you also have the right to withdraw from the contract for payday loans in parabanks.
How can the customer withdraw from the loan agreement?
Pursuant to the Consumer Credit Act, the institution with which we have signed the contract is required to provide the appropriate application template to the customer who will want to withdraw from the loan agreement. It is best to submit the completed application directly to the loan office or bank office in duplicate. We keep the confirmation of withdrawal from the contract on copy so that there are no doubts as to whether our application was submitted within the appropriate time limit set by consumer law. This is very important. In the case of postal delivery, we are exposed to a delay, e.g. from an illegible stamp. By sending an application online, we may not receive confirmation of withdrawal.
Does withdrawal from the contract entail additional costs?
Of course, within 14 days we must return all the money that has been made available to us by the loan company or the bank. Unfortunately, we will not avoid interest that was specified in the loan agreement. This is another reason why you should visit the lender’s office or bank. In this way we will know the exact amount that we have to pay back together with interest. Giving all the money we should ask for a document confirming the correct repayment of the commitment. In this way, we will avoid any possible claims in the future.
What does the issue of additional fees look like? By law, the lender is required to reimburse all costs incurred by the client, such as commission and loan insurance. However, the exception is the costs incurred by the loan company, e.g. a preparation or notary fee to determine the collateral for the loan. To sum up, when deciding to withdraw from the loan agreement, we must return the borrowed amount and any interest. In the case of insurance, the amount returned to us will be reduced depending on the number of days elapsed from the conclusion of the contract to its withdrawal.