Withdrawal from the non-bank loan agreement via the internet is possible within 14 days of signing the contract. Check how to do it.
It is very important to compare and choose the cheapest loan before signing the contract, but also read its provisions. But what to do when we used the loan and it turned out that it is not very beneficial, or suddenly (!) We have access to the amount we borrowed?
You have the right, in accordance with the Consumer Credit Act, to withdraw from the loan agreement within 14 days of signing.
Loan companies, like banks and Credit Unions, which grant credits and loans to consumers, must comply with the provisions of the Act on consumer credit of May 12, 2011.
Article 53, paragraph 1 of the said Act stipulates that each consumer has the right to withdraw from the loan agreement within 14 days from the date of conclusion of the contract. It is not necessary to give the reason for your decision.
This is essential if you have made a quick reckless decision on the loan and signed an unfavorable contract. However, you must fit within 14 days.
How to withdraw from a non-bank online loan agreement?
Actually, it does not matter if the loan agreement was concluded with an online loan company or a fixed-line company.
Withdrawal from the concluded contract requires submission of a statement. In such a case, should you contact a lawyer to help us write a proper letter? No. Pursuant to the Act, every entity that grants such loans, together with a loan agreement, must give us a model statement of withdrawal from the contract.
A properly constructed statement template includes:
- name of the entity granting the loan,
- company headquarters address.
Complete the declaration and send to the address provided. It is best to send such a letter for confirmation of receipt.
The cost of withdrawal from the loan agreement
In addition to the loan amount refunded, according to the Consumer Credit Act, you must also pay interest on the loan for the period from the date of payment to the date of its repayment. You do not know how much interest on the loan you have to give back? Contact the loan company – phone number, email address on the lender’s website or on the contract.
The loan amount plus interest must be returned within 30 days of the date of the statement. If you exceed the deadline of 30 days, then the statement is treated as ineffective and you must repay the loan in accordance with the agreed schedule.
Another advantage that is associated with withdrawal from the loan in accordance with the Act, is that if the borrower incurred costs in connection with taking out the loan (purchased insurance), then the lender must settle with you on this account.
Not all fees are refundable. For example, notary fees that were collected by a notary public.
Withdrawal from the contract of non-bank loans
- each consumer, according to the Consumer Credit Act, has the right to withdraw from the loan agreement within 14 days from signing it.
- there is no obligation to state the reasons for this decision.
- every loan company is required to attach to the contract a model declaration of termination.
- the declaration must be sent by post.
- the loan + interest should be returned to 30 days from the date of sending the statement.
Non-bank loans via the Internet non-bank cash loans