Did you know that you have the option of canceling a loan, whether it is a bank loan, quick loan or other.
The terms of the provisions are set out in the Credit Agreement Act. You can see all the provisions here.
The provisions regarding the right of withdrawal can be seen in Chapter 3.
This article will answer the most frequently asked questions about the right of withdrawal of a credit agreement, based on quick loans. However, the provisions described herein are completely the same regardless of the type of loan.
When can I cancel a quick loan?
Under Section 19 of the Credit Agreement Act, you can cancel a quick loan within a period of 14 days. These are calendar days, so weekends and holidays also count.
The deadline starts from the moment the loan agreement is concluded or from the day you receive the loan terms.
The loan terms are as follows:
- The type of credit involved
- Name and address of the loan provider.
- The total amount you borrow
- The maturity of the loan
- The borrowing rate
- Conditions for termination of the loan agreement
- Notice that you can always repay the entire outstanding debt at no additional cost.
- The rate of default interest and other costs associated with the default of the loan (If you do not pay back on time).
- Your right to know the results of database searches related to your credit rating.
See an in-depth explanation of the different terms in section 7 b. 1-12 right here.
In addition, the credit agreement must also be drawn upon either paper or what you call a “durable medium”.
A lasting medium is that format that cannot be changed afterward. It can for example. be a PDF document or e-mail.
The deadline for repayment of a repayment loan is thus 14 days from the date you signed a loan agreement or that you have received outstanding loan terms.
How do I undo a quick loan?
You regret by approaching either the person orally or in writing to the person who has given you the loan. In the case of a quick loan, it will be the loan provider.
However, it is always recommended that you apply in writing, e.g. on mail. The reason for this is that it is easier to prove exactly what has been communicated and when the notice has appeared.
If there is any doubt as to whether you have undone properly and within the 14-day deadline, you can easily prove it by mail. It’s harder if you, for example. calling in there.
Alternatively, you can call in and explain the loan provider situation and then send an email confirming what you have been talking about.
When should I repay the amount?
If you have been paid off the loan, you must, of course, return it.
According to section 19 (1) of the Credit Agreement Act. 4, if you foreclose on a loan agreement and have the loan amount paid out, you must return the full amount without undue delay and within 30 days from the time you have canceled the loan agreement.
“Without unnecessary residence” means that you must not hold the money unless there is a reason to do so. So you have to transfer the money as soon as possible, but as long as it happens within the 30 days from the time you repaid the loan.
What does it cost to undo a quick loan?
You can always cancel a quick loan at no cost. All you have to pay is the interest accrued on the amount from your receipt to your account until you return it.
In addition, you may claim any setup fees back.
However, here it should be said that fees to the state such as. the registration fee is non-refundable.