Is it possible to withdraw from the payday loan contract?

 

When we urgently need an injection of cash, and we have no one to borrow from it, it often comes to our mind to take advantage of the quick loan offer. However, it may happen that immediately after signing the contract we need the money we need. Can we withdraw from the contract in such a situation? More of this story: http://www.jerseyshoreguide.net/2020/01/28/easy-payday-loans-online-research-and-then-request-a-cash-advance-loan-online/

The answer is yes. The possibility of withdrawing from the contract with a non-bank loan is provided to consumers by the provisions of the Consumer Credit Act.

Read contracts and payday regulations

Read contracts and payday regulations

All formalities related to the making of payday loans, such as:

  • costs of incurring it (e.g. interest, commissions, fees),
  • amount to be repaid,
  • fast loan repayment date.

They should be included in the agreement between the lender and the borrower and in the regulations, available on the website of the loan company. The regulations should also contain information about when and how we can withdraw from the payday loan agreement. In addition, when concluding a loan contract, we should be informed about the possibility of withdrawing from the contract and receive a special form, which should be submitted as a termination.

When can I withdraw from the loan agreement?

When can I withdraw from the loan agreement?

A person who has taken a payday loan may cancel it without giving a reason within the first 14 days of signing the quick loan agreement . It is also possible when the money from payday pay has already hit our account. Such termination must be made in the form of an appropriate statement, which the borrower should receive at the time the contract is made.

Such a declaration can be made directly at the headquarters of the loan company or sent by post. With the latter option, it’s best to send them by registered priority with confirmation of receipt. Then we have proof that we have fulfilled our obligations and deadlines resulting from the possibility of withdrawing from the contract. For a loan company, the date of the postmark on the envelope is important, not the date on which the letter is actually delivered to the loan company, so we don’t have to worry if we send notice on the last day of the withdrawal period.

The person who withdraws from the contract is obliged to return the borrowed amount within 30 days (counting from the day on which the statement was sent). The 30-day period also applies if the payday loan has been concluded for a much shorter period. Termination can therefore be used as an opportunity to extend the repayment period, but during this period the company will charge interest on a loan.

What notice costs will the borrower bear?

What notice costs will the borrower bear?

Withdrawal of the contract within 14 days from the date of signing the contract does not entail any additional costs for the borrower. He must return the entire borrowed loan amount plus interest accrued from the day the money is paid to the day it is returned, within 30 days. This amount will also include the costs of granting payday loans and additional fees, if any. The borrower, however, will not be forced – after withdrawal from the contract – to repay any subsequent obligations, commissions and other costs.

For a month after giving notice, the borrower may freely dispose of the lender’s money – theoretically, because in practice he must take into account the need to charge interest on this amount. The payday loan should be returned as soon as possible and immediately in its entirety.

 

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