April 25, 2016 Unplanned expenses, no savings – in such situations, the quick online loan is often the only solution. Unfortunately, it happens that the decision taken too hastily will not be favorable to us. Fortunately, according to the law, we can make a complaint or withdraw from the contract. The complaint is only possible if the lender has not fulfilled the concluded contract. We can terminate the contract even if the loan company has fulfilled it in full. This is our decision, which usually does not require justification.
When is the termination of the loan agreement possible?
Usually, when taking an online loan, we are convinced that we will need it. In fact – this is often the last resort. According to research carried out for Net Credit, Poles who take out loans most often make such a decision spontaneously in connection with sudden expenses. As many as 66% declare so. respondents. No wonder that they often give up loans 1 . This does not mean that we all borrow lightly. However, there are situations when we assess our situation incorrectly and want to resign from a previously contracted loan. As it turns out, we have the right to do so and – importantly – we do not have to justify our decision. Loan companies don’t investigate why we want to cancel the contract. We must remember that we have 14 days to resign from the loan from signing the contract with the loan company. The service provider may also withdraw from the loan agreement, which requires a more detailed discussion.
Filing a resignation from our commitment in a non-bank institution should not be problematic. To this end, we should complete the appropriate form, which is one of the annexes to the contract we have previously signed. If we do not have it, we can prepare such an application ourselves. We have to name it: “Withdrawal from the contract / Withdrawal form.” Then we declare a refusal, citing chapter 5 of the Consumer Credit Act. There are specific requirements that relate to the course of withdrawal from the contract, as well as a prohibition on the consumer to bear the costs of doing so. In this chapter we will also learn that we have 14 days to submit the form in question.
Of course, we should also add the date of the contract conclusion and receipt of funds to our account, as well as the loan amount, loan period and information on additional costs to the withdrawal form. The correct submission of the application within 14 days is the guarantor of the application being approved by the loan company.
Knowing your rights will help when you cancel your credit or loan
In accordance with applicable regulations, we have the right to resign regardless of where we sign the loan agreement, i.e. at the branch of the loan company, in our home (so-called home services) or via the Internet. Then, within 14 days of submitting the statement of withdrawal, you should return the funds that the loan company has transferred to your account. If we do not meet this deadline, it will not be possible to resign from the loan and we will have to pay it back according to the previously agreed schedule. However, we should not panic, in case of repayment problems we can extend the repayment date.
When does the lender terminate the contract?
It is worth mentioning that there are also situations when the contract is terminated by the party granting the loan. It’s a bit more complicated. The loan company has the right to withdraw from the contract and refuse to issue the loan when it considers that the client may not repay it due to the poor financial situation. This entitlement is granted to the lender if at the time of considering the loan application he was not aware of the financial problems of the applicant. The legal basis in this case is Article 721 of the Civil Code.
The difference between a complaint and withdrawal from the contract
It should be mentioned that there is a significant difference between a complaint and withdrawal from the contract. The complaint is defined as the consumer’s right to replace, repair or return the product based on the non-compliance of the goods with the contract. Thus, we have the right to complain if the commitment given to us is inadequate to the contract. However, we must reckon with the need to prove that we were actually given a installment loan, short-term loan or loan on terms other than those for which we applied. We will learn about the rules of our lender about how to make a complaint.
Withdrawal from the loan agreement is the same as giving up this service. As already mentioned, it is subject to legal norms that are included in the Consumer Credit Act. Then our contract is canceled, not replaced with another product, as is often the case with a complaint. Unlike complaints, it does not require justification, so we can freely use this option.
When submitting a complaint, check what it must contain
Not every letter in which we express our doubts about the behavior of a loan company will be treated as a complaint. Also, the title of the magazine with the word “complaint” will not help, as the complaint letter must meet certain standards. It should contain personal data, the number of the loan agreement to which the complaint relates, as well as the date of its conclusion.
After entering your data and contract details, you should present the event, clearly and concisely describe the circumstances and reasons for the situation. If you refer to any documents, then you should attach them – a scan or photocopier is enough to make the application transparent for the person who will examine it. Remember to clearly define your claims against the company. If you send a complaint by e-mail, you should also ask for confirmation of receipt of the e-mail in the body of the message. Thanks to this you will be sure that your letter has been delivered.
According to KPF, complaints in the financial sector are rejected mainly because of incomplete submission of documents and inadequately supplemented complaint letters – lack of data of the borrower, lack of contract number, to which the letter relates. In addition, many people still do not read the contracts they sign and then make complaints that have no basis. So remember to always know the conditions you agree to.