June 20, 2018 Withdrawal from the loan agreement? Yes it is possible. Banks must ensure that customers can cancel their contract. The legal basis, which is often the gate for people who make financial decisions too hastily, is the Consumer Credit Act. What can we find in the provisions on withdrawal from the loan and how to cancel the bank loan agreement? The procedure is simple and the rules for withdrawing from the loan are clear and transparent. If the loan decision was a mistake, don’t delay. You only have 14 days!
When can you withdraw from the loan agreement?
Withdrawal from the consumer loan agreement (including online loan agreement, loan agreement within the meaning of the Banking Law, agreement on the postponement of the customer’s repayment date, if he incurs the costs of this postponement, the loan agreement when the lender incurs a liability towards a third party and a revolving loan agreement) , it is possible within 14 days of signing this contract. It is not allowed to exceed this deadline. For his behavior it is sufficient to send a statement within two weeks. We don’t have to give a reason for our decision, we can just change our minds and decide that we don’t need credit.
According to the Consumer Credit Act, the consumer does not bear any costs for withdrawing from the consumer credit agreement. The exception is interest for the period from the date of payment of money to the day of repayment of the debt.
How to cancel the contract?
Did your first loan burden your budget too much? Do you want to withdraw from the installment loan agreement? Or maybe you are considering withdrawing from a consolidation loan agreement? We already know when it is possible, but how to cancel the contract? If we have decided that we cannot afford a cash loan or we have changed plans and do not need such amount, we must complete a statement of withdrawal from the loan agreement. We should receive such a document from the bank. In addition, we are obliged to return the loan amount to the lender, including the interest, no later than 30 days from the date of submission of the statement in which we withdraw from the contract.
Withdrawal from the loan agreement – template
A ready statement of withdrawal should be found in the contract documents or on the website of the bank of our choice. Let’s take a closer look at the specific document templates provided by banks that we use on a daily basis.
- Santander withdrawal from the loan agreement – we provide the name and name of the borrower, PESEL and contact details. We must also enter the contract number, the date of its conclusion and make a legible signature on the document. The declaration shall be made at a bank branch, with a credit intermediary or sent to the address of a banking institution;
- withdrawal from the Alior Bank loan agreement – we provide the name, surname, address, type and number of the agreement as well as the date of its conclusion. We sign and send the document to the address of the banking institution;
- withdrawal from the mBank loan agreement – we are required to provide personal data along with a PESEL number or passport series and number as well as the address of residence. We also enter the name, number and day of signing the contract, and in order to reimburse the bank for costs, we complete the field with the bank’s name and account number. Finally, we sign and send the document to the address of the banking institution;
- withdrawal from the PKO BP loan agreement – we provide personal data, PESEL number and ID number, and then enter the agreement number and the date of its conclusion.
Effects of withdrawal from the loan agreement
Withdrawal from the loan agreement does not threaten with negative consequences of such proceedings. The bank has no right to impose a fine or commission on us. As customers of a banking institution, we are required to pay interest that the bank accrued in the period when we used the funds. We must also repay the entire loan amount, within the aforementioned period of 30 days from submitting the declaration. Sometimes banks require additional costs, e.g. notary fees. Therefore, we should read the contract carefully to know all the conditions for borrowing money and giving up the injection of cash.
Withdrawal from the mortgage contract
Withdrawal from the mortgage contract, in accordance with the Mortgage Act of 22 July 2017, is possible within 14 calendar days of signing the document. Prior to this date, the cancellation only applied to consumer loans – now the consumer can also cancel a mortgage.
The customer will be required to pay interest accrued for the period of using the money that the bank has paid out and other cost additions that the banking institution has incurred in connection with the contract. The amount of the mortgage, as in the case of a consumer loan, must be returned within 30 days.
Is withdrawal from the loan agreement tantamount to resignation from loan insurance?
Credit insurance is sometimes compulsory, at other times we decide ourselves whether we want to buy them. Protects against death, loss of health or work. It is worth thinking about it if we borrow a larger amount and want to provide ourselves and our family with a sense of security in the event of unforeseen events. What to do when we decided to take out insurance and we resign from the loan agreement?
If an additional service was connected with the loan agreement signed by us (e.g. insurance mediated by the bank), withdrawing from the loan agreement, we also withdraw from the additional services, and thus from the loan insurance agreement.
Withdrawal from the installment purchase contract
Installment purchase is a tied loan, a type of consumer loan in which the creditor incurs an obligation to a third party and the consumer repays the creditor the fulfilled service.
Let’s explain it with an example:
- We buy the product in installments in the store.
- The bank pays for shopping.
- We pay the installments to the banking institution that has paid for the goods or service.
Installment purchases (including online purchases) are subject to the same rules as consumer loans. We have the right to opt out of online purchases without any consequences. The deadline is unchanged and is 14 days from the date of purchase by the goods.
Withdrawal from the loan agreement and withdrawal from the loan agreement
Withdrawal from the loan agreement works in the same way as withdrawal from the loan agreement. Online loans are a form of consumer credit. If you want to cancel the contract, just follow the same procedure as for the termination of the loan contract.
We can write a statement of withdrawal from the loan agreement. We give it the appropriate title, and in the text we enter the details of the borrower and the lender and the formula: “In accordance with Chapter 5 of the Act of May 12, 2011 on consumer credit (Journal of Laws 126, item 715) and item 7 Loan agreements, I hereby inform about my withdrawal from the Loan Agreement No. “.
Termination of the loan agreement by the lender
Withdrawal from the loan agreement is not tantamount to termination of the agreement. Termination of the contract does not offset her. The lender may terminate the contract if the borrower fails to comply with its terms.
The loan agreement is terminated as a result of:
- failure to pay the full loan installments on time specified in the contract, for at least two payment periods,
- failure to pay the outstanding installments or parts thereof within 7 days of receiving the call under pain of termination by the creditor.
The term of termination of the consumer loan agreement by the bank may not be less than 30 days. Therefore, if we want to cancel the contract because we cannot afford a loan – we should cancel it within 14 days. Otherwise, we will receive from the bank notifications of termination due to non-payment.