How to withdraw from a loan agreement?
Consumer rights and online products
More and more people are choosing to shop online. The universality of online stores, ever-growing e-commerce businesses, discounts and promotions mean that it is becoming more and more profitable for a customer to place an order online and wait for delivery. Especially if the customer has discount codes that reduce the value of the “basket” and the courier will quickly deliver the parcel to the address indicated. It is worth noting that the work of the online sales giant, which Amabook is undoubtedly, on the implementation of fast shipment to the customer using drones, is very advanced. Maybe after some time, when ordering a book, we’ll get it in 10 minutes? One should know that, pursuant to the Act on consumer rights, the customer has the option of returning the goods purchased in the online store within 14 days of the conclusion of the purchase contract. Without giving a reason, but with an appropriate statement.
In that case, if we take out a loan via the Internet, can we withdraw from the loan agreement? Let’s see our rights, but also our obligations. We also encourage you to familiarize yourself with the procedure in specific companies by going to the withdrawal from the contract category.
Withdrawal from the loan agreement – up to 14 days from its conclusion
The decision to conclude a loan agreement should be made carefully and reasonably. We should analyze whether our financial position allows us to pay the potential liability on time. However, it is known that there are different situations in our lives that cannot be predicted. If, after signing all the documents and receiving the money, it turns out that we do not need financial support, we have a chance to withdraw from the loan agreement. This is guaranteed by the Consumer Credit Act (Journal of Laws 2011 No. 126 item 715). We can read in it that we have the right to do so without giving reasons within 14 days of its conclusion. To meet the deadline, it is enough to send a statement during this period. So we can conclude that the date of posting counts.
Art. 53.5. To meet the deadline referred to in paragraph 4, it is sufficient to send the statement before its expiry. Consumer Credit Act (Journal of Laws 2011 No. 126 item 715)
How to withdraw from a consumer loan agreement?
First of all, it is the responsibility of the company with which we take out a loan to provide the client with the contract with an appropriate template of the document terminating the loan contract. Such an application should be delivered by e-mail or regular mail. Most companies attach such a document to the contract.
Which entities with which we took out the loan are affected by the Consumer Credit Act and the option to withdraw from the contract? We are talking here about loans taken out of both non-bank online service providers as well as traditional banks and Cooperative Savings and Credit Unions. The same applies to parabanks and companies that grant payday loans.
The application must include the address and name of the company providing the financial commitment. This form should be a convenience for the customer who has the right to withdraw from the contract, according to the applicable provisions of the Consumer Credit Act. This is a very convenient and common sense approach. Taking a loan is a responsible task, while taking a loan is a very serious matter, a decision for many years, and sometimes for a lifetime. When we make such key decisions, we often act under stress. A visit to a bank and a conversation with a representative may not always be easy. Not everyone is a bank employee, a person interested in finances, so it happens that what a consultant proposes is completely incomprehensible to us. Sometimes it is only on the second day, with a cool head, we sit down to read the contract again and suddenly discover records that are simply unacceptable to us. Then what? Well, as we mentioned, the Consumer Credit Act works in our favor.
As we have already mentioned, according to the Consumer Credit Act, the option of withdrawing from the loan agreement should be free of charge. In return, many lenders include in their offers a record about the need to return the money borrowed with interest. Interest will be calculated for each day from the day the loan is paid to our account until the day it is returned to the lender’s account. According to the provisions of the Civil Code (Journal of Laws 1964 No. 16 item 93), they amount to a maximum of twice the sum of the reference rate of the Natbank and 3.5 percentage points. As at 19/02/2019, they amount to 10%.
It is worth emphasizing here that not every loan company obliges its clients to do so. Detailed information on this subject can be found after going to the blog entries category “Withdrawal from the contract”. The exact amount of interest already accrued will be indicated after logging in to the client’s profile on our lender’s website.
Withdrawal from the consumer loan agreement – obligations
We were talking about our rights. We will now also present the obligations that we as consumers must fulfill. Of course, we should read the loan agreement or loan agreement carefully. Agreements may specify the way to settle financial obligations towards the bank or lender. There is no doubt that when we terminate the loan agreement, we must pay back the money we received as part of the benefit. You need to ensure timely payment to the appropriate account (this must be checked, because it may happen that the entity granting the financial commitment will designate a completely different account to pay the entire debt than the account assigned to the client for installment repayment). Usually, 30 days will be returned after the loan cancellation has been accepted. It all depends on the specific entity with whom we borrowed money and of course on the previously concluded contract.
Late payment of the loan
What if, after withdrawing from the loan agreement, we are late with the regular repayment of the previously granted loan? Will we be exposed to additional fees? Much depends on the lender’s internal arrangements. However, it is standard to charge interest for late payment according to the limits set in the Act. This means that their value may not exceed twice the sum of the reference rate and 5.5 percentage points (14% as at February 19, 2019). The starting date for accruing interest is the next day after the deadline.