Withdrawal from the loan agreement within 14 days
You needed cash urgently and used a loan from a bank or loan company? Now, after knowing the calmness of the current offer of other entities, do you think that you have signed a very unfavorable contract? Nothing lost! If 14 days have not passed since the conclusion of the contract, you have the right to withdraw from it.
What can you find in the Consumer Credit Act?
Few people who borrow money know their rights. Meanwhile, both banks, cooperative savings and credit unions as well as loan companies that provide loans to consumers are obliged to apply the provisions of the Act of 12 May 2011 on consumer credit. According to art. 53 par. 1 each consumer has the right to withdraw from the loan agreement within 14 days from the date of conclusion of the contract. He does not have to give reasons for his decision.
If you made the decision on the loan impulsively and now you see that you have chosen a very unfavorable offer, nothing lost – you have the right to withdraw from the contract. The only condition you need to remember is to keep the deadline – 14 days mentioned.
How to withdraw from a credit or loan agreement?
To withdraw from the contract you have to make a statement. Do not be afraid – you do not have to build it yourself or look for a pattern on the internet. Each entity providing loans at the conclusion of the contract must give the customer a specimen of withdrawal from the contract. A properly constructed model must include the name of the entity that granted the loan and the address of its registered office.
It is enough, therefore, that you fill out the attached statement form and then provide it to the address indicated by the lender. You can send the statement via the postal operator. Select the type of letter to have confirmation of the receipt and possibly receive a confirmation of receipt.
What will you have to pay for?
When you withdraw from the loan agreement, you will – of course – have to pay back the amount received. Pursuant to the Consumer Credit Act, you must increase it with interest, but only for the period from the date of payment of the loan to the date of its repayment. In order not to make a mistake in the calculations, you should contact a representative of the lender. You have 30 days to refund the amount from the day the statement was made.
What if you exceed the 30-day deadline? Then the statement is treated as ineffective. As a result, you will have to pay back the loan you have drawn in accordance with a predetermined schedule. If you decided that the commitment made is unfavorable to you, do not hesitate – the faster you complete the formalities, the better. Otherwise, you may find that you will be able to pay off your commitment.
The good news is that the interest you will have to pay for the period you have the amount paid is the only cost you will have to pay for the decision. The aforementioned act prevents the lender from charging other costs related to the withdrawal by the client from the concluded contract.
When will you recover your payments?
Starting a consumer loan may be dependent on the customer paying fees. If you have incurred costs in connection with the loan (for example, you have purchased insurance), you can expect the lender to settle your account – this is what the Consumer Credit Act obliges him to do. However, not all fees are refundable. This applies, among others notary fees that have been paid to secure the loan amount even by establishing a mortgage.
If you are not sure whether you can count on a refund, contact the lender’s representatives. You should receive an exhaustive response from them in this regard.
Withdrawal from the loan agreement – a summary
So in summary – every consumer in the understanding of Polish law has the option to withdraw from the loan agreement within 14 days of its conclusion. It does not have to give any reasons for this decision or answer questions. It is enough to find a loan application application for termination of the contract, print it and then send it by post. As soon as the notice is delivered to the loan company, we have 30 days to return the funds. It will be necessary to send back the entire amount borrowed. If we are late with the return – penalty interest will be charged for the delay and the case will be forwarded to the debt collection. However, without worries, 30 days is a sufficient time for most people.