In the 21st century, more and more people are using the internet. As well as decides to shop online and many people borrow at non-bank companies. Often, people make decisions about payday loans too quickly in a sudden surge of adrenaline that extra money will be useful for a variety of things. Many people actually spend extra money on paying off overdue bills, car repairs, a doctor, shopping and other pleasures. However, there are also those who regret the payday loan and wonder how to withdraw from the loan agreement.

When we buy online in online stores, we have the right to a refund. If a product does not meet our expectations, we can also make a complaint. In the case of loans and installment loans, we can choose the option to withdraw from the contract.

Can you opt-out of the loan?

Can you opt-out of the loan?

The loan agreement is the most important element in the process of borrowing extra money. Each borrower has the right to withdraw from the loan agreement within a period not exceeding 14 days from the date of its conclusion.

People who want to withdraw from the contract do not have to state the reason for their decision. The right to resign gives us the Consumer Credit Act. It does not matter which loan company the customer has used and whether it was an installment loan or so-called Online Payday loans. Everyone has the same right.

For the full effectiveness of withdrawal, it is necessary to inform the lender. For this purpose, we should prepare a statement and send it to the lender’s address or deliver it in person. When we send the document, choose a registered letter, preferably with confirmation of receipt. Please note that the date on the postmark is legible.

The preparation of the statement is not difficult

The preparation of the statement is not difficult

We should include first of all our and borrower’s data, date and put the formula: “I hereby withdraw from the loan agreement No. …”. The statement should also be hand-signed by the client.

In addition, if we withdraw from the loan agreement it means that we must also return the money. Then the customer is obliged to return the amount paid within 30 days of submitting a statement of withdrawal from the contract.

At the same time, the customer is also required to pay interest for the period from the date of disbursement of the loan to the date of repayment of the loan amount to the account. Information on the amount of interest for each day can be found in the loan agreement.

Borrowers’ rights

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An extra cash injection is the only financial support for some people to finance urgent expenses. However, many people are not wondering how they will pay off their debts. They often think about whether you can withdraw from the loan agreement.

The only and most important document is a loan agreement, which we sign with a non-bank company. The contract should contain clearly defined parties to the contract, as well as their signatures. The first page of the contract should include the annotation who wants to borrow additional money, and the second page should state that the lender who gives the amount. In addition to signatures, the contract should also contain several key provisions. It is essential to:

  • determination of the type of liability, and therefore whether it is a short-term loan or an installment loan;
  • the amount of the commitment;
  • loan period;
  • loan costs;
  • and how to regulate the payment – whether it is a transfer to an account or another form of payment.

With such a well-described contract, we can avoid the risks associated with payday loans. From the documents, we can also find out whether there is a possibility of early repayment of the obligation, an extension of the deadline for regulating the acquired benefit or how to withdraw from the loan agreement.

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